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Apec-Oecd Integrated Checklist on Regulatory Reform

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Apec-Oecd Integrated Checklist on Regulatory Reform APEC-OECD INTEGRATED CHECKLIST ON REGULATORY REFORM A POLICY INSTRUMENT FOR REGULATORY QUALITY, COMPETITION POLICY AND MARKET OPENNESS OECD MEMBER COUNTRIES APEC MEMBER ECONOMIES AUSTRALIA APEC has 21 members. The word “economies” is used to describe APEC members because the APEC co-operative AUSTRIA process is predominantly concerned with trade and BELGIUM economic issues, with members engaging with one CANADA another as economic entities. CZECH REPUBLIC AUSTRALIA DENMARK BRUNEI DARUSSALAM FINLAND CANADA FRANCE CHILE GERMANY PEOPLE’S REPUBLIC OF CHINA GREECE HONG KONG, CHINA HUNGARY INDONESIA ICELAND JAPAN IRELAND REPUBLIC OF KOREA ITALY MALAYSIA JAPAN MEXICO KOREA NEW ZEALAND LUXEMBOURG PAPUA NEW GUINEA MEXICO PERU NETHERLANDS PHILIPPINES NEW ZEALAND RUSSIA NORWAY SINGAPORE POLAND CHINESE TAIPEI PORTUGAL THAILAND SLOVAK REPUBLIC UNITED STATES SPAIN VIET NAM SWEDEN SWITZERLAND TURKEY UNITED KINGDOM UNITED STATES THE APEC-OECD CO-OPERATIVE INITIATIVE ON REGULATORY REFORM is a Joint Activity of the OECD Regulatory Reform Programme (Directorate for Public Governance and Territorial Development) and the APEC Competition Policy and Deregulation Group (CPDG) convened by the Federal Competition Commission of Mexico. PREAMBLE MEMBER ECONOMIES OF APEC AND THE OECD A FIRST PHASE OF THE APEC-OECD INITIATIVE have recognized that regulatory reform is a central was completed in October 2002, at the High level element in the promotion of open and competitive Conference in Jeju, Korea, where economies markets, and a key driver of economic efficiency agreed on the need to elaborate an APEC-OECD and consumer welfare. As a result, agreement Integrated Checklist for self-assessment on regu- for an APEC-OECD Co-operative Initiative on latory, competition and market openness policies, Regulatory Reform was reached in June 2000 and to implement the APEC and OECD principles. was endorsed at the APEC Ministerial Meeting on The second phase of the initiative focused on the 12-13 November 2000 in Brunei Darussalam, in development of the integrated checklist which order to promote the implementation of the APEC has been presented for approval to the respec- and the OECD principles by building domestic tive Executive Bodies of the APEC and the OECD capacities for quality regulation. in 2005. MANY ECONOMIES WITHIN APEC AND THE THE CHECKLIST IS A VOLUNTARY TOOL that OECD have individually embarked on ambitious member economies may use to evaluate their programmes to reduce regulatory burdens and respective regulatory reform efforts. There is no improve the quality and cost-effectiveness of single model of regulatory reform, but this does not regulations. They have collectively endorsed mean that standards, goals and well-structured regulatory reform principles and policy recom- institutions do not matter. Based on the accu- mendations at the highest political levels, specifi- mulated knowledge of APEC and the OECD, the cally through: Checklist highlights key issues that should be considered during the process of development ■ The 1999 APEC Economic Leader’s and implementation of regulatory policy, while Declaration, containing the APEC Principles to recognizing that the diversity of economic, social, Enhance Competition and Regulatory Reform, and political environments and values of member ■ The 1997 OECD Policy Recommendations economies require flexibility in the methods on Regulatory Reform, and through which the checklist shall be applied, and ■ The 1995 OECD Recommendation in the uses given to the information compiled. on Improving the Quality of Government There is little risk that self-assessment will be an Regulation. exercise in self-satisfaction. Even countries that are well-advanced can find room for improvement. The preparation of the Checklist represented close co-operation between the APEC Competition Policy and Deregulation Group, and the OECD Horizontal Programme on Regulatory Reform. APEC-OECD INTEGRATED CHECKLIST ON REGULATORY REFORM WHILE THE CHECKLIST WILL NOT BE USED THE OTHER THREE SECTIONS OF THE FOR COMPARATIVE PURPOSES, it can provide QUESTIONNAIRES FOCUS ON INDIVIDUAL useful information for those economies interested POLICY AREAS, and the factors that may be in (i) moving closer to good international practices; considered to improve their specific design and and (ii) reducing the uncertainty regarding the implementation. The policy areas are defined as implementation of regulatory reform principles and follows: institutions, particularly in relation to the dynamic ■ R EGULATORY POLICIES: and interrelated effects of competition, market those designed to maximise the efficiency, openness and regulatory policies. The checklist transparency and accountability of creates an orderly framework for decision making regulations based on an integrated rule- that sets out key concepts to guide administrators making approach and the application of through the complexities of the design and imple- regulatory tools and institutions. mentation of an effective and high quality regulatory reform policy. This can greatly assist policy makers ■ C OMPETITION POLICIES: in identifying options and targeting priorities. those that promote economic growth and efficiency by eliminating or minimising THE CHECKLIST IS COMPRISED OF FOUR the distorting impact of laws, regulations SECTIONS. The first is a horizontal questionnaire and administrative policies, practices and on REGULATORY REFORM across levels of govern- procedures on competition; and by preventing ment that invites reflection on the degree of integra- and deterring private anti-competitive tion of regulatory, competition and market openness practices through effective enforcement of policies across levels of government, and on the competition laws. accountability and transparency mechanisms ■ needed to ensure their success. Regulatory reform MARKET OPENNESS POLICIES: refers to changes that improve regulatory quality those that aim to ensure that a country to enhance the economic performance, cost- can reap the benefits of globalisation and effectiveness, or legal quality of regulations and international competition by eliminating or related government formalities. Reform can mean minimising the distorting effects of border revision of a single regulation, the scrapping and as well as behind-the-border regulations and rebuilding of an entire regulatory regime and its insti- practices. These policies influence the range tutions, or improvement of processes for making of opportunities open to foreign suppliers regulations and managing reform. Deregulation is a of goods and services to compete with subset of regulatory reform and refers to complete domestic counterparts in a particular national or partial elimination of regulation in a sector to market (e.g., through trade and investment). improve economic performance. ■ 2 APEC-OECD INTEGRATED CHECKLIST ON REGULATORY REFORM TABLE OF CONTENTS IN A CHANGING WORLD, government action A HORIZONTAL CRITERIA remains essential to protect and promote impor- CONCERNING tant social objectives, such as safety, health, REGULATORY REFORM 4 and environmental quality, and the international community has taken commitments to several B REGULATORY POLICY 14 social and environmental agreements in the past decade. Indeed, as economies develop, public C COMPETITION POLICY expectations in such areas tend to increase. More AND LAW 20 efficient and dynamic economies will help govern- ments serve these public interests. Experience D MARKET OPENNESS shows that reform, if properly carried out, should POLICIES 26 not adversely affect, and can often promote, such objectives. There is scope to consider further how MATRIX: regulatory quality affects social and environmental THE APEC-OECD policy objectives. INTEGRATED CHECKLIST 12 THE CHECKLIST IS THEREFORE AN INTEGRATED SELF-ASSESSMENT TOOL, IN THREE SENSES. ANNEX 33 First, it integrates the APEC and OECD principles on regulatory reform. Second, it integrates the three policy areas – competition, rule-making and market openness – to provide a coherent whole- of-government view. Third, it integrates governance perspectives – transparency, accountability and performance. 3 ■ HORIZONTAL CRITERIA CONCERNING REGULATORY REFORM Regulatory reform refers to changes that improve regulatory quality to enhance the economic performance, cost-effectiveness, or legal quality of regulations and related government formalities. Reform can mean revision of a single regulation, the scrapping and rebuilding of an entire regulatory regime and its institutions, or improvement of processes for making regulations and managing reform. Deregulation is a subset of regulatory reform and refers to complete or partial elimination of regulation in a sector to improve economic performance. Regulatory, competition and market openness policies are key drivers for a successful and coherent regulatory reform. HORIZONTAL CRITERIA CONCERNING REGULATORY REFORM A1 To what extent is there an COMMENTS: The checklist begins with an assessment integrated policy for regulatory reform of the status of the regulatory reform process. that sets out principles dealing with The point of departure is to ask whether a regulatory regulatory, competition and market reform policy exists. Such a policy often takes the openness policies? form of a statement setting out principles to govern regulatory reform which provides strong guidance and benchmarks for action by officials, and also sets out what the public can expect from government regarding regulation. Thus both domestic and foreign
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