OECD Reviews of Regulatory Reform MEXICO TOWARDS A WHOLE-OF-GOVERNMENT PERSPECTIVE TO REGULATORY IMPROVEMENT OECD Reviews of Regulatory Reform Mexico TOWARDS A WHOLE-OF-GOVERNMENT PERSPECTIVE TO REGULATORY IMPROVEMENT This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2013), OECD Reviews of Regulatory Reform. Mexico: Towards a Whole-of-Government Perspective to Regulatory Improvement, OECD Publishing. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. 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Towards a Whole-of-Government Perspective to Regulatory Improvement © OECD 2013 Table of Contents Foreword . 9 Acknowledgements. 11 Abbreviations and Acronyms. 13 Executive Summary. 17 Chapter 1. THE ImportaNCE OF REGULatorY POLICY AND GOVERNANCE . 29 What is regulatory policy? . 30 What are the benefits of actively implementing regulatory policy? . 30 The evolving need for greater regulatory governance . 31 Regulatory policy in a whole-of-government perspective . 33 Regulatory institutions . 33 Regulatory tools . 34 Chapter 2. REGULatorY POLICY AND INSTITUTIONS . 37 Introduction . 38 Structure of the government in Mexico. 38 Regulatory capacity of the government. 40 Regulatory policy. 41 Mexico’s formal policy on better regulation . 41 Areas excluded from the policy on better regulation. 42 Better regulation policy for regulation inside government . 45 Regulatory institutions . 46 Oversight body . 46 Training and capacity building . 47 Advocacy for better regulation . 49 Better regulation in the federal public administration . 49 Coordination between the COFEMER and the Ministry of Public Administration . 50 The Regulatory Improvement Council . 50 Conclusions . 50 Chapter 3. REGULatorY tooLS: REGULatorY impact ASSESSMENT AND CONSULtatioN . 53 Introduction . 54 RIA in Mexico: History and recent developments . 54 Early steps . 54 The 2000 reforms . 55 The 2010 reforms . 56 Additions to RIA in 2012 . 56 3 TABLE OF CONTENTS Description and analysis of current RIA practice . 58 Scope of RIA requirements . 58 Types of instruments subjected to RIA and threshold of application . 59 Legislation originating in Congress . 60 Process requirements for RIA . 61 Initial “triage“. 61 Regulatory Impact Calculator . 63 Competition impact checklist . 64 Risk impact checklist . 65 The role of the COFEMER in RIA. 65 Responsibility for RIA . 66 Quality Management System for RIA . 66 Improving capacities . 67 The Economic Intelligence Unit. 68 Training programs . 69 Use of external consultants. 69 Independent experts . 70 Methodological issues in current RIA requirements . 71 Discount rates . 71 Value of Statistical Life (VSL) . 72 Public consultation . 73 Conclusions . 74 Chapter 4. REGULatorY tooLS: ADMINistratiVE SIMPLificatioN AND MANAGEMENT OF THE stocK OF REGULatioN. 77 Introduction . 78 Reduction of administrative burdens . 78 The Standard Cost Model as a tool for the measurement and reduction of the administrative burdens . 79 The biennial programmes of Mexico as tools to reduce administrative burdens . 80 Adaptation and application of the SCM by the Mexican government. 83 Other administrative simplification strategies . 84 The Federal Registry of Formalities and Services . 84 Regulatory reform programme Base Cero . 85 The one-stop shop for business start-up tuempresa.gob.mx . 86 Single Window for Foreign Trade . 90 The SARE—System for Quick Business Start-up . 93 Regulation inside government . 94 Conclusions . 96 Chapter 5. REGULatorY GOVERNANCE IN MEXICO: ASSESSMENT AND RECOMMENdatioNS. 99 Regulatory policy and institutions . 100 Regulatory tools . 111 Chapter 6. THE GOVERNANCE OF THE REGULatorY SYSTEM: INDEPENDENCE, PERFORMANCE, AND ACCOUNtaBILITY OF REGULators . 119 Introduction . 120 The nature of regulators within the OECD context . 120 The issue of independence and accountability. 122 4 MEXIco. TOWARDS A WHOLE-OF-GOVERNMENT PERSPECTIVE TO REGULATORY IMPROVEMENT © OECD 2013 TABLE OF CONTENTS The three analysed regulators . 124 The Energy Regulatory Commission (CRE) . 124 The National Banking and Securities Commission (CNBV) . 125 The National Service for Health, Safety and Food Quality (SENASICA) . 126 Assessment of current situation . 126 Main recommendations. 130 Special section: progress towards addressing the recommendations on the governance of the regulatory system by the 2012-2018 administration . 134 The “Pact for Mexico” and its materialisation through constitutional reforms . 134 Competition and telecommunications . 135 Transparency and fight against corruption . 136 Education. 137 The independence of regulators is an important step forward to achieving a “whole-of-government” approach on regulatory policy . 138 Chapter 7. MULTI-LEVEL REGULatorY GOVERNANCE . 139 Introduction . 140 The organisation of the Mexican.