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Inspection and Control Cycle
The document outlines a comprehensive inspection and control cycle for regulatory governance, emphasizing the importance of performance monitoring and evaluation of regulatory policies. It presents a structured approach that includes developing policy roadmaps, designing regulations, and ensuring compliance through inspection and responsive enforcement. Key challenges include utilizing technology for data collection and improving decision-making through collaboration with stakeholders.
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Inspection and Control Cycle
- 1. Inspection and control cycle TessyTorres S.
- 2. Regulatory governance cycle 4. Monitor and evaluate performanceof regulation Policy issues for government actions 1. Develop a policy roadmap and choose the policy instrument(s) • Regulation • Other policytools 2. Design regulation Check current regulation 3. Consultation Co-operation The 4Cs ComunicationCo-ordination • The welfare related to the regulation only gets by the compliance of the law. • The success of the inspection and enforcement process guarantees the compliance. • In that sense, it is important to pay special attention to the inspection and enforcement process.
- 3. Inspection and control cycle Howcan I make regulation policy is accomplished? Evidence Collection Outcome / Results evaluation Responsive enforcement Feedback Traning & transparency 1. Inspection plan 2. 3. 4. 5.
- 4. Inspection and control cycle Inspection plan Allocationof Resources Risk Analysis Stakeholders Core business Political agenda Power media 1
- 5. Inspection and control cycle Inspection plan Example:Consumer Protection Finance System Market share Claims and Complaints Recidivism Impact Probability } 1
- 6. Inspection and control cycle Inspection plan CriterionProbability Closeness to Protected Natural Area Explotation stage Recidivism Complaints 1 = Unlikely 5 = Almost certainly 4 = Very Likely Example: Enviromental Protection Impact 5 = Catastrophe 3 = Moderate 2 = Slight 1 = Insignificant Criteria contained in the annual plan and published in the institutional portal 4 = Very Likely Result Risk = Probability x Impact http://www.oefa.gob.pe/wp-content/uploads/2017/02/RES-004-2017-OEFA-CD-PLANEFA.pdf 1
- 7. Inspection and control cycle Collectionof evidence on compliance • Impact? • Compliance? Collect data to verify the effectiviness of the public policy Collect data to value the impacts (and calculate the sanction) 2
- 8. Inspection and control cycle Collectionof evidence on compliance Use of technologies Impact? Compliance? 2
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- 10. Inspection and control cycle Results evaluation HIGH MEDIUM LOW PROBABILITYIMPACT PROPORTIONALITY OF THE CONSEQUENCE ARISING FROM NON - COMPLIANCE 1 2 3 4 5 Value Probability Description Very Likely Highly Probable Probable Possible Unlikely It is estimated to occur continuously or daily It is estimated that could happen within a week it is estimated that could happen within a month it is estimated that could happen within a year it is estimated that could happen in a period larger than one year Possible affected environment Calculation Formula Natural environment Amount + 2 dangerousness + extention + potentially affected environment Human environment Amount + 2 dangerousness + extention + potentially affected people http://www.oefa.gob.pe/metodologia-para-la-estimacion-del-riesgo-ambiental 3
- 11. Inspection and control cycle Responsive enforcement SERIOUS MODERATE MINOR Paralyzation/ Closing Sanctioning / Disciplinary procedure Opportunity to remedy = Exculpatory Proportionality analysis 4
- 12. Inspection and control cycle Responsive enforcement ? EducationSector Level of Non - compliance 81% 4
- 13. Inspection and control cycle Responsive enforcement EducationSector Does not know its obligations https://www.indecopi.gob.pe/examinate 4
- 14. Inspection and control cycle Feedback throughindicators EFFICIENCY OUTCOMES EFECTIVENESS OF PUBLIC POLICYInspections Time Resources Level of compliance Improvement of environmental indicators Inspection and Control Value Chain Was the supervision plan fulfilled? Was the risk analysis of the Control Plan adequate? Are the enforcement tools adequate? Is the public policy objective that justifies regulation met? 5
- 15. Inspection and control cycle Feedback throughindicators 3 years 6.5 months Average in completing a file from the supervision to the resolution of first instance Average in completing a file from the supervision to the resolution of first instance 11185 Files pending since 2014 0 December 2017 Indicator Average time of supervision Resources assigned by supervision 5
- 16. Inspection and control cycle Feedback throughindicators 19% 53% Level of compliance Level of compliance 5
- 17. Design enforcement inthe Regulatory Governance Cycle 4. Monitor and evaluate performance of regulation 1. Develop a policy roadmap and choose the policy instrument(s) • Regulation • Other policytools 2. Design regulation Check current regulation 3. Consultation Co-operation The 4Cs ComunicationCo-ordination Design enforcement Policy issues for government actions Source: OECD
- 18. Enforce Regulation andChallenges License revocation License suspension Civil Penalty Criminal Penalty Warning Letter Persuasion Higher gravity Minor gravity Punishments to deter: With economic criteria for proportional sanctions and use of automated applications to generate predictability Behavioral economics Adapt strategies to the reality of the market: Prioritize persuasion strategies for emerging business. Special strategies for economies with the presence of companies in the informal sector. Source: Ayres&Braithwaite (1992) Responsive Regulation Trascending the Deregulation Debate. Oxford University Press
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- 20. Conclusions We have developedspecific tools for each step of the cycle, measuring compliance as a result of the inspection process. The information collected in this process will be used on the ex post evaluation. 1 2 We can show the inspection process in a cycle that requires specific tools and indicators in each step of it in order to be efficiency, effective and satisfactory. 3 Challenges: - Use technological tools for the systematic collection of relevant information. - Use data from other stakeholders to improve decision making. - Desing enforcement strategy to promote compliance.
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