Faisal Naru

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RIA An Art and not a Science
Faisal Naru Head of Better Regulation DAI Europe
Ltd November 2007
Washington London Johannesburg Ramallah
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Presentation Outline

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

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1. What is RIA?

?
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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.

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1. 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

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1. 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
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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.

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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

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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

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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!

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4. ConclusionsRegulating 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!

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Thank You

• Faisal Naru
• Head of Better Regulation
• Email faisal_naru_at_dai.com
• Telephone [phone]
• Address DAI Europe Ltd., 2nd Floor, Strand
  Bridge House,
• 138/142 Strand, London WC2R 1HH, UK