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Faisal Naru Head of Better Regulation DAI Europe Ltd November 2007

RIA – An Art and not a Science. Faisal Naru Head of Better Regulation DAI Europe Ltd November 2007. Washington London Johannesburg Ramallah. Presentation Outline. What is RIA? Rationale behind RIA Elements of a RIA framework International Experience of RIA and Lessons Learnt.

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Faisal Naru Head of Better Regulation DAI Europe Ltd November 2007

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  1. RIA – An Art and not a Science • Faisal Naru • Head of Better Regulation • DAI Europe Ltd • November 2007 WashingtonLondon Johannesburg Ramallah

  2. Presentation Outline • What is RIA? • Rationale behind RIA • Elements of a RIA framework • International Experience of RIA and Lessons Learnt

  3. What is RIA? ?

  4. What is Regulation? Anygovernment intervention that has an impact on individuals, institutions, organisations or groups within the private or public sector and in general on society.

  5. What is RIA? – a Document • Core structure of the RIA Document • Title of Proposal • Purpose and Intended Effect • The Policy Problem • Options • Impacts • Distribution of Impacts • (Results of) Consultation • Compliance • Monitoring and Evaluation

  6. What is RIA? – a System Public Debate • RIA – The System • Fits Policy Making Cycle • Process that is Iterative • Ensures Consultation • Process for Communication • Opportunity for Scrutiny • Avenue to Challenge • Method to Obtain Buy-In Parliament Public Debate Decision Makers Cabinet Public Debate Decision Makers Ministry Policy Makers

  7. 2. Rationale behind RIA • Economic Reforms to improve the Business Enabling Environment (BEE) and Economy • Link between Regulatory Reform & Quality of BEE now better understood by Key Economic Stakeholders • Growing focus on Better Regulation initiatives that: • Address both Qualitative & Quantitative aspects of regulation • Establish simpler, appropriate and sustainable regulatory regimes • Support high quality, low cost laws and policies that reduce regulatorycosts, risks and barriers to competition facing firms • Protect essential public interests • RIA is tool for controlling the flow of NEW policies, legislation and regulations.

  8. 3. Elements of an RIA framework • Political will and commitment at top • Commitment/Buy-In/Trust for reform and change • Centrally based body in Government • Common Language/ Dialogue with Stakeholders • Institutional Resource

  9. 4. International Experience & Challenges • Need for Government policy endorsement and commitment • Policy consultation and dialogue frameworks essential • Policy inconsistency/competing priorities, and weak planning a challenge • Institutional and individual champions play a key role at all levels • Importance of understand RIA as a strong and flexible policy tool – Art not Science! • Need to convert support for RIA into the use of RIA in day to day policy-making • Need to improve the quality of RIAs over time – not immediately! • Post- reform institutional capacity and coordination challenges • Potential for Institutional Resistance • Benefits of wider reform effort and a growing economy are a bonus

  10. Lessons Learnt • Anticipate the full impact of political environment constraints at the design stage • Understand country specific and often complex social, economic and political realities • Recognise importance of stakeholder input and ownership • Understand importance of goal based regulations and need for public education and awareness • Appreciate limitations of formal government policy endorsement • Need to align more closely the many ongoing reform initiatives • Keep focus on the underlying message: to improve flow– Art not Science!

  11. 4. Conclusions:Regulating Better in the Future • Understand the local political economy, set realistic time frames & a strong accountability mechanism • You can start small • Find Champions at all Levels • Build momentum through ‘Quick Wins’ • Develop a PPP approach and up-skill stakeholders to engage • Ensure effective scrutiny of the process essential • Then you can Build Institutional structures to manage the flow of regulation RIA is an Art NOT a Science!

  12. Thank You • Faisal Naru • Head of Better Regulation • Email:faisal_naru@dai.com • Telephone: +44 207 420 8600 • Address: DAI Europe Ltd., 2nd Floor, Strand Bridge House, 138/142 Strand, London WC2R 1HH, UK

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