Seminar on Administrative Simplification Ankara 8-9 May 2008

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Presentation transcript:

Seminar on Administrative Simplification Ankara 8-9 May 2008 Administrative Simplification and building a culture for better regulation Edward Donelan M.A., Dip. Eur.Law, Dip. Arb., Barrister–at–Law of the Kings Inns, Dublin and the Middle Temple, London, Senior Adviser (Principal Administrator, Sigma/ OECD) Seminar on Administrative Simplification Ankara 8-9 May 2008

What is the connection between? The legal obligation in Poland to keep cash registry receipts for 5 years. The obligation in Italy to have 7 different types of certificate before getting married. The obligation in Slovenia to have a licence to operate a hairdressing business. The obligation in Ireland to have all legal documents translated into Irish.

Try harder with more resources. A Better Regulation policy What is the solution to complexity and inefficiencies in legal and administrative systems? No solution. Try harder with more resources. A Better Regulation policy

Better Regulation Policy Derives from: Regulatory Reforms Public Service Reforms Has many names: Reinventing government SMART regulation Better Regulation Regulating Better Better Legislation New institutions and new tools (or old tools used in new ways)

Better Regulation involves continuous improvement of: Design and application of better regulation tools: impact assessment Design and application of better regulation tools: consultation Design and application of better regulation tools: simplification Design and application of Better Regulation tools: reduction of administrative burdens.

Better Regulation involves continuous improvement of: Design and application of better regulation tools: impact assessment Design and application of better regulation tools: consultation Design and application of better regulation tools: simplification Design and application of Better Regulation tools: reduction of costs and administrative burdens.

Design and application of better regulation tools: impact assessment History Policy making by a different name: Statement of policy problem and objective Description of policy context, objectives and options (for example different forms of regulation) Consultation Enforcement and compliance for each option Review In cases where there are substantial impacts: financial, social, environmental, an additional exercise is the: Identification of costs, benefits and other impacts of each option which is being considered Identification and description of options Impact analysis including costs and benefits of each option

Design and application of better regulation tools: impact assessment Evidence based policy Avoidance of unintended consequences Not a substitute for political decision Need to build capacity slowly Need to build impact assessment culture into policy making cycle

Design and application of better regulation tools: consultation To ensure that the operations of Government and bodies throughout the Public Sector are conducted with greater clarity and openness. To get buy- in and even compliance It helps to gather useful information. It contributes to a shared understanding of issues and work towards agreed solutions. It can identify the likely pitfalls or possible unintended consequences of a proposal.

Design and application of better regulation tools: simplification More accessible legislation Consolidation Codification Recasting Make sure that all written communications between government and citizens are as simple and accessible as possible. Make sure the cost of administrative requirements (information gathering, complying with regulations) is as low as possible.

Administrative costs Governments and EU requirements impose two types of costs on business and society: Substantive costs, i.e., costs induced by obligations for businesses to change their products and/or production processes. Administrative costs, i.e., costs incurred by businesses in meeting obligations to provide information on their activities or production, either to public authorities or to private parties.

Many countries following this lead Design and application of Better Regulation tools: reduction of costs and administrative burdens. Requirements specifically linked to information that businesses would not collect and provide in the absence of a legal obligation. 25% Reduction planned by 2012 Many countries following this lead Increase in the level of GDP of about 1.5% or around € 150 billion

Conclusions Better Regulation here to stay – for a while Better Regulation involves the use of certain tools: impact assessment, consultation and administrative simplification. Growing recognition that some obligations needlessly time-consuming, excessively complicated or useless. Need for new approaches and change of culture from administration to management from control to cooperation