Faisal Naru

Head of Better Regulation

DAI Europe Ltd

November 2007

Washington London Johannesburg Ramallah

RIA – An Art and not a Science

Presentation Outline

1. What is RIA?

2. Rationale behind RIA

3. Elements of a RIA framework

4. International Experience of RIA and Lessons Learnt

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1. What is RIA?

1. What is Regulation?

Any government intervention that

has an impact on individuals,

institutions, organisations or groups

within the private or public sector and

in general on society.

1. What is RIA? – a Document

Core structure of the RIA Document

Title of ProposalPurpose and Intended EffectThe Policy ProblemOptionsImpactsDistribution of Impacts(Results of) ConsultationComplianceMonitoring and Evaluation

1. What is RIA? – a System

RIA – The System

Fits Policy Making CycleProcess that is IterativeEnsures ConsultationProcess for

Communication Opportunity for Scrutiny Avenue to Challenge Method to Obtain Buy-In

Parliament

Cabinet

Ministry

Decision Makers

PublicDebate

Policy Makers

Decision Makers

PublicDebate

PublicDebate

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 regulatory costs,

risks and barriers to competition facing firms Protect essential public interests

RIA is tool for controlling the flow of NEW policies, legislation and regulations.

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

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

4. 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!

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!

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

Thank You