1 Peer Review: A Tool for Co-operation and Change Analysis of an OECD Working Method SEVAL, Berne, 10 September 2010 Fabrizio Pagani, Special Political Counsellor to the Secretary General, OECD, Paris

2 The Organisation for Economic Co- operation and Development The OECD is an international organisation created in 1960, based in Paris, with 33 (+1) member countries The OECD works in most policy areas: economic policies, trade, investment, agriculture, education, health, environment, public and corporate governance, competition, development aid, etc… The OECD provides independent analysis and constitutes the major forum for policy dialogue and coordination of public policies The OECD plays a normative role, especially in areas which are not covered by other international organisations

3 The OECD and Peer Review Peer Review is a working method which is closely associated with the OECD The OECD has developed Peer Review since the 1960s and now employs this method across most of its policy areas: economic policies, environment, competition, tax, anti-bribery, development assistance, regulatory reform Other international organisations and bodies (such as WTO, Council of Europe, Nepad - APRM, ASEAN, etc..) have taken up this method and tailored it to their needs and practices

4 Definition of Peer Review Peer review is the systematic examination and assessment of the performance of a State by other States, with the goal of helping the reviewed State improve its policy making, adopt best practices, and comply with established standards and principles. The examination is typically conducted on a non-adversarial basis, and it relies on mutual trust, as well as the shared confidence in the process.

5 Definition of Peer Pressure Peer pressure consists of three elements: –(i) a mix of formal recommendations and informal dialogue by the peer countries; –(ii) public scrutiny, comparisons, and, in some cases, even ranking among countries; and –(iii) the impact of all the above on domestic public opinion, national administrations and policy makers.

6 A Peer Review Model The structural elements of peer review are: – An agreed set of principles, standards and criteria against which the country performance is to be reviewed; – Designated actors to carry out the peer review; and – A set of procedures leading to the final outcome of the process.

7 Principles, Standards and Criteria They may include: – Policy recommendations and guidelines; – Specific indicators and benchmarks; – Legally binding principles.

8 The Actors Peer reviews implies the interplay among several actors: –Reviewed country; –Examiner countries; –Collective body within which the peer review is carried out; –Secretariat.

9 The Procedures Peer review consists of three phases: –The preparatory phase; –The consultation phase; –The assessment phase.

10 The Functions of Peer Review Peer review can serve the following purposes: –Policy dialogue –Transparency; –Capacity building; –Compliance.

11 When Can Peer Review Be Effective? These factors make peer review effective: –Value sharing; –Adequate level of commitment; –Mutual trust; –Credibility.

12 Examples of Peer Review of Switzerland Economic Survey Environmental Performance Review Regulatory Reform Review Territorial Development Review Development Assistance Review

13 Conclusions Peer review serves as a stimulus to incremental change and improvement. Through the accompanying effect of peer pressure – including both persuasion by other countries and the stimulus of domestic public opinion – peer review can create a catalyst for performance enhancement which can be far-reaching and open-ended.