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Integration of Regulatory Impact Assessment into the decision making process in the Czech Republic Aleš Pecka Department of Regulatory Reform and Public.

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Presentation on theme: "Integration of Regulatory Impact Assessment into the decision making process in the Czech Republic Aleš Pecka Department of Regulatory Reform and Public."— Presentation transcript:

1 Integration of Regulatory Impact Assessment into the decision making process in the Czech Republic Aleš Pecka Department of Regulatory Reform and Public Administration Quality Ministry of Interior, Czech Republic

2 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Content Integration of RIA into the decision-making process Historical background Introduction Preconditions and challenges Conclusion - lessons learned

3 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Introduction  Department of Regulatory Reform and Public Administration Quality, Ministry of Interior (since November 2006)  Department’s Competencies: Regulatory Impact Assessment Simplification of regulatory environment Strategies and conceptions in Public Administration

4 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Historical background  What does Regulatory Reform mean?  Puzzling term: at first, it does not give a clear picture what the issue is about…  Sometimes confusing,e.g. terms Better Regulation (EU) and Regulatory Reform and Regulatory management (OECD) used  Possible definition: according to given facts in each particular country its aim is to improve regulatory process…

5 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Historical background  Regulation drafting in the Czech Republic:  Traditional legal approach  Primary focus on the quality of legal texts  General requirements for drafting defined by the Legislative Rules of Government (LRG)  Review by the Legislative Council of the Government

6 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Historical background  Where the origins in the Czech Republic can be traced?  OECD Regulatory review, the Report published in 2001  Analysis of recommendations submitted to the Government which took note of them by its Resolution No. 650 of June 2001  Among others, including the proposal “to elaborate draft guidelines and proposal of implementation of the Regulatory Impact Analysis (RIA)”

7 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Historical background  In 2002, LRG partly amended by some elements arising from RIA:  Assessment of alternative (regulatory) solutions;  Substantial intents as well as legislative proposals shall contain the estimated economic and financial impacts on the state budget and other public budgets  However, followed only formally, absence of relevant control mechanisms...

8 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Implementation of RIA  Regulatory reform agenda  New impetus: incorporation into the Central State Administration Reform Strategy adopted by the Government in March 2004  Formal adoption of RIA as a tool: Government approval of the Plan for incorporation of RIA into the Czech legislative system (April 2005)  (Draft Guidelines for regulatory impact assessment)

9 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Implementation of RIA  Pilot phase (2005-2006):  Application of the Draft Guidelines for conducting the impact assessment on selected pilot projects  On the basis of the gained experience – completion of the Guidelines (by December 2006)  Guidelines are planned to be put on the Government agenda for approval by March 2007

10 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  What elements should be taken into account?:  Process rules  Institutional arrangements  People – civil servants  Consultations – important phase in RIA process

11 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  Process rules (2007):  Guidelines for regulatory impact assessment  Full impact assessment obligatory to all drafts of primary and secondary laws  Obligation to follow the guidelines => amendment of the Legislative Rules of Government to be approved together with Guidelines (alternatively considered option: enactment of the rules in a special law)

12 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  Institutional arrangements  Finding the balance between centralistic and decentralized approach  Concept based on the division of ‘roles’:  Carrying the impact assessment of a legislative proposal – the responsibility of the body elaborating such a proposal  Control of quality and methodological assistance - entrusted to a specialized unit (regarding its horizontal function, preferably located at the Centre of Government)

13 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  Institutional arrangements (the reality):  Quality review of RIAs accompanying legislative drafts entrusted to the Department of Regulatory Reform and Public Administration Quality (DRR PAQ), Ministry of Interior  Elaboration of RIAs: Specialized units at each ministry (recommended, but not obligatory - up to the decision of each ministry), methodological assistance by DRR PAQ

14 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  People – civil servants  Providing an adequate training for officials  Specialized training (3 days) to explain the concept and introduce the methodology (the Guidelines) provided up to 50 civil servants from different ministries during 2006 by the central training unit (Institute of State Administration) – to be continued...

15 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Preconditions and challenges  Consultations  Important phase in the RIA process  Creation and management of the Database of consulted organisations (so-called “DataKO”) on the special website  It contains contacts to the stakeholder’ organisations (structured according to the particular topics/areas/economic sectors)  Methodology of Public Consultations

16 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Lessons learned  What are the supportive elements?:  Benefit of the outside international „pressure“ (OECD’s regulatory reviews and know-how, recently also influence of the EU membership – particularly Lisbon strategy agenda)  Necessary political support  Implementation of the principles of Regulatory Reform - a part of a wider policy package (Central State Administration Reform)

17 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Lessons learned  How to apply the RIA efficiently?:  Avoid overload of desk officials  E.g. exploitation of a “minor” and “major” RIAs following the principles of a “two-stage” drafting legislative process in the Czech Republic  They differ in the scope of detail of the analysis: “minor” RIA: mostly qualitative analysis with possible estimate of financial impacts “major” RIA: detailed cost-benefit analysis with respect to a single or a few solution options

18 Aleš Pecka Department of Regulatory Reform and Public Administration Quality, Ministry of the Interior, Czech Republic Lessons learned  Implementation of RIA is not only about rules and institutions – it is a change of culture within the public administration  Therefore the change can only be gradual, the „snowball effect“ helps...  On the other hand, RIA does not replace political decision-making, it provides only well- founded information for decision-makers  More work for officials, yet the benefits outweigh the costs (avoiding “wrong”, costly decisions…)

19 Aleš Pecka e-mail : pecka.ales@vlada.cz

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