1. Adviser, Ministry for State Reform, Lebanon
Developing Regulatory Impact Assessment
In Georgia
Context and justification of a RIA scheme
Tbilisi, 12 November 2014
Charles-Henri Montin, Smart Regulation Consultant
Former Senior Regulatory Expert, Ministry of finance, France
Adviser, Ministry for State Reform, Lebanon
C.H. Montin, Tbilisi 1

2. 1994
2010
2004
2007
2014
15/11/2014
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3. How to act on regulatory quality
POLICIES
INSTITUTIONS
TOOLS
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4. The three ages of regulatory quality
Regulatory management
Due process
Consistent legally
Accessible
Inform stakeholders
Regulatory
Reform (1995)
Effective
Efficient
Competitive
Consult
stakeholders
Regulatory governance (2010)
Integrated objectives
Cycle approach
Incl. M&E
Involve stakeholders
GOOD
BETTER
SMART
Why do we need regulatory reform and Regulatory Impact Analysis? (Delia Rodrigo)
1. Regulation is fundamental to governing complex, open and diverse societies and economies.
Regulatory processes allow policy-makers to balance competing interests and have been critical to the
development of democracy and the modern state. The growth of regulatory systems was unplanned for
most of the 20th century, expanding into more areas in response to problems and the complexity of
economic and social activities. The emergence of regulatory reform and deregulation in the 1970s
constituted the first explicit and sustained attempt to understand the nature of regulation and its limits as a
policy instrument. As more was learnt about the nature of the regulatory tool through the 1980s and the
1990s, deregulation gave way to regulatory reform, then to regulatory management and, more recently, to a
forward-looking agenda to improve regulatory quality.
2. Regulatory reform reflects the profound economic and social transformations of the past few
decades. In response to technological innovations, consumer demand for better services, the evolution from
manufacturing towards service economies, and interdependencies in regional and global markets,
governments have faced a transition to market-led growth to maintain economic performance. These shifts
have necessitated supply-side reforms that stimulate competition and reduce regulatory inefficiency.
Regulatory reform has become increasingly central to economic policy agendas.
3. To regulate better has become a crucial goal. Improving the quality of regulation has shifted in
focus from identifying problem areas, advocating specific reforms and eliminating burdensome
regulations, to a broader reform agenda that includes adopting a range of explicit, overarching policies,
disciplines and tools. Explicit policy support for the regulatory reform agenda, targets and evaluation
mechanisms is essential. Governments have had to adopt a consistent approach to the rule-making process
and employ new policy tools, such as regulatory alternatives, consultation mechanisms and Regulatory
Impact Analysis (RIA).
4. RIA is a clear example of the trend towards more empirically based regulation and decisionmaking.
Policy makers increasingly value regulation that produces the desired results as cost-effectively as
possible. Much government action involves trade-offs between different possible uses of resources to
maximise the benefits to society. RIA furnishes empirical data that can be used to make wise regulatory
decisions.
5. As part of a systematic approach towards regulatory policies, institutions and tools, RIA by itself
is not a sufficient basis for decisions. Instead, it is best used as a tool with which to improve the quality of
political and administrative decision-making, while also answering to increasing calls for openness, public
involvement and accountability.
6. RIA has been used more and more over the last few years. By the end of 2000, 14 OECD
countries had comprehensive RIA programmes in place, and another 6 were using RIA for at least some
regulations (OECD, 2002b). By contrast, few studies have considered the potential for using RIA in
developing countries (Kirkpatrick and Parker, 2003). Although some developing countries are beginning to
apply some form of regulatory assessment, their methods are generally incomplete and not applied
systematically across policy areas (Kirkpatrick, Parker and Zhang, 2003).3
7. Because RIA provides decision-makers with detailed information about the potential effects
regulatory measures may have, it contributes to accountability, transparency and consistency, and can be
useful in promoting economic and social welfare. While OECD publications provide a valuable resource in
which a diversity of possible approaches to RIA are highlighted, it is important to stress that there is no
“correct” model for RIA. The appropriate path to regulatory reform will depend on the political, cultural
and social characteristics of the individual country concerned.
BR ≠ Deregulation
BR = dynamic LT process acting on policies, institutions and tools
C.H. Montin, Tbilisi

5. RIA at the centre of regulatory policies
United Kingdom
Better Regulation
Impact assessment
Regulatory Policy Committee
Publication
One-in, two-out
European Union
Smart Regulation
RIA
Impact assessment Board
France
Regulatory Quality
Evaluation préalable
Conseil d’Etat
Legistics
Constitutional basis for RIA
This slide offers options for seeking lessons learnt from best practice in economies having successfully implemented RIA
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6. RIA supports better regulation: within regulatory governance
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7. The OECD checklist for decision making
This slide illustrates the advice for optimal decision making in the regulatory process.
RIA supports this by organising the evidence necessary for enlightened decision making.
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8. Trend in RIA adoption across OECD jurisdictions
source: OECD website
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9. The definition of RIA
Definition: “RIA is a systematic policy tool used to examine and measure the likely benefits, costs and effects of new or existing regulation”
Why is RIA important?
It introduces the evidence base into the policy decision making
It can help establish whether regulation is the best available means to address the policy objective
It is a tool at the service of the general objectives of the national regulatory policy
Another approach to RIA (ED)
A process to improve the quality of policy decisions, typically to analyse:
The real problem to be solved.
The options (there is always more than one way to achieve an objective).
The costs and benefits of alternative options.
A means of holding structured consultations with those interested in the proposals.
A final decision based on the best available evidence set out in a transparent and accessible manner.
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10. Benefits of RIA Analytical tool
Provides a method to ask the right questions
Employs CBA and other quantification techniques to check that proposed policy/regulation is
Effective
Efficient
Communication tool
Provides a means of informing decision makers of alternatives in a rational manner free of ideology or bias
Enhances transparency, accountability, credibility, trust, legitimacy
Learning tool
Sets a base line for ex post facto evaluations
Contributes to policy coherence
Why is RIA needed (ED)
A regulatory impact assessment is needed to ensure that any proposed regulation is:
- Necessary
- Aimed at the right target
- In proportion to the problem or issue being addressed.
 Regulatory impact assessment is particularly important whenever proposed regulations that impose costs on business.
IAs have the potential to improve the overall quality of legislation by:
• informing decision-makers about possible effects on the various aspects of sustainability so that
policies are more evidence-based;
• improving the transparency of decision-making processes through the analysis of policy
proposals’ likely effects, so that contributions to sustainability are disclosed while the pursuit of
particular interests is made more difficult;
• increasing participation in the decision-making processes, in order to reflect a wide range of
sustainability considerations; and
• making clear how policy proposals contribute to the various priorities, goals, and indicators of
sustainability strategies, thereby supporting achievement of goals.
• contributing to a continuous learning process in policy development: IA identifies causalities
which can feed into the ex-post evaluation of policies. (RIA and sustainable development)
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11. RIA supports the policy-making process
(context of RIA)
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12. Common challenges in implementing RIA
Related to the tool:
Problem identification (not the same as the objectives)
Availability of data
“Proportionate analysis” (criteria, transparency)
Quantification (costs, and especially benefits)
Risk assessment
Related to the structure/process
Scope of application / selection of proposals
Governance of RIA, Quality control (oversight)
Presentation / Communication
Integrate RIA up-stream (early in decision-making)
Integrate RIA down-stream (“closing the loop”)
Administrative capacity, Training
Multi-level context
Trade-off political decision vs technical expertise
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13. Clear ministerial accountability
OECD good practices (1)
1. Political commitment and endorsement at the highest levels
Legal basis for RIA
Clear ministerial accountability
2. Allocate responsibilities for the RIA programme
Operational responsibilities with the services
Inter-service coordination
Central quality oversight
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14. Scope of application / thresholds for when to do RIAs Sectoral impacts
OECD good practices (2)
3. Target and prioritise RIA efforts
Scope of application / thresholds for when to do RIAs
Sectoral impacts
4. Develop comprehensive guidelines
Mandatory
Both on process and on technical aspects
5. Carry out sound analysis
Strategies for data collection
Consistent but flexible methodologies
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15. 6. Consultation / Transparency / Communication : publish RIAs
OECD good practices (3)
6. Consultation / Transparency / Communication : publish RIAs
7. Training officials to build the right skills to produce RIAs
8. Apply RIA to both new and existing regulation
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16. Developing RIA practice step-by-step
The main steps for developing RIA practice:
Define national methodology using foreign best practice
Build capacities in regulating agencies
Set up quality control mechanisms or structures
Create training programme for RIA drafters
Launch pilot studies
Monitor for continuous improvement with practice.
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17. Mapping out a RIA system based on international good practices
PRELIMINARY CONSIDERATIONS for Introducing RIA
Ensure political commitment
Build an RIA team inside the administration
Integrate RIA timely in the decision-making process
DESIGNING the RIA Framework
Co-ordination and management
Targeting and prioritising RIA efforts
Strategies for data collection
Using a flexible analytical method
Consultation, participation and transparency
PREPARING RIA Implementation
Developing guidelines
Training the regulators
Communication as a tool for RIA
Delia Rodrigo
PRELIMINARY CONSIDERATIONS for Introducing RIA
Ensure political commitment
Where to find political support
Legal mandate for RIA
Build an RIA team inside the administration
Institutional setting for RIA
Who should be conducting RIA
Integrate RIA timely in the decision-making process
PREPARING RIA Implementation
Developing guidelines
Training the regulators
Communication as a tool for RIA
Inside the administration – RIA network
Communicating results
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18. Critical success factors for RIA structure
Clear objectives, legal basis, awareness
Good process
Training of RIA drafters
Network of officials in ministries
Review body for quality control
Continuous learning (“learning by doing”, iterative process)
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19. Conclusions
Impact assessment has developed over the last 20 years and is now a widely used tool; UK and EU currently have best practice models
It presents challenges to operate it meaningfully (integrate into decision making) but also a lot of knowledge has been shared and this can help build a national scheme.
Policy-makers naturally address the costs and benefits of political choices. RIA offers rigour by adding the quantitative assessment of all options, including non-regulatory.
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20. Relevance to Georgia
Do you perceive advantages to developing RIA in your country?
What could be the main obstacles to the introduction of RIA ?
Who would be likely to support the development of RIA in Georgia?
C.H. Montin, Tbilisi

21. To learn more about RIA (systemic issues)…
OECD “text-books”
“Building an institutional framework for RIA”
“A tool for policy coherence”
RIA governance (UK)
BR framework
UK Government RIA site ;
RIA guidelines (EU)
European Commission RIA site
Guidelines
France: “New RIA in France” (ppt)
All presentations on
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