30a conferencia nacional sobre mejora regulatoria méxico– 18 octubre 2012

30a Conferencia nacional sobre Mejora Regulatoria

México– 18 octubre 2012

Mejora regulatoria para fortalecer la competitividad

nacionalLecciones de Francia y del mundo

Charles-Henri Montin, Senior Regulatory Expert,

Ministry of economy, finance and industry, Paris, France

http://smartregulation.net

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Contents

How regulatory reform can contribute to competitiveness

Varieties of regulatory reform experience (one faith, many chapels)

How can Mexico further tap the competitiveness potential of regulatory reform

CH MONTIN, Pachuca (MX), 18 octubre de 2012

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Part one: How regulatory reform can support competitiveness

Approaches to competitivenessRegulation in society and the

economyWhat is quality regulation?Measuring competitiveness

Drivers or competitiveness

NC

Stable environmen

t

Quality infrastructu

re

Efficient competition

Cluster developmen

tCorporate sophisticati

on


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How can governments nurture competitiveness?

Establish a stable and predictable macroeconomic, political, and legal environment

Improve the availability, quality, and efficiency of general purpose inputs, infrastructure, and institutions

Set overall rules and incentives governing competition that encourage productivity growth

(cluster development) (process of economic change )


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The main areas of regulation in support of competitiveness

• Preserve efficient market operation

• Provide stable background

• Reduce costs of doing business

• Provide well-run public services

Market

rules

Institution

sBusine

ss environment

infrastructure


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What is quality regulation?

Regulation: written rules that mandate behavior, in pursuit of policy objectives

Regulation, “one of three key levers of state power, with fiscal and monetary policy” (OECD)


Necessary Clear/

accepted Light (costs) Well targeted

Stable Proportional Well applied

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Lack of coordination and planning capacities

Vested interests may block reform; political incentives favour short term interests over long term societal policy goals

Rapidly changing environments (obsolescence)

Too many levels of government: duplicative or excessive reg. (e.g. gold-plating of EU law)

Over-reliance on regulation, regardless of cost and alternatives

Risk aversion, poor risk management in reg.

Challenges to Delivering High Quality Regulation


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Economic impact of good regulation

Regulatory Reform can yield 5 -11% of extra GDP

(impact of reform of Product market regulation, Employment protection legislation reform and benefit, tax and retirement systems

See 2011 working paper http://www.oecd-ilibrary.org/economics/raising-potential-growth-after-the-crisis_5kgk9qj18s8n-en


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http://www.oecd-ilibrary.org/economics/raising-potential-growth-after-the-crisis_5kgk9qj18s8n-en

Part 2Varieties of regulatory reform

The growth and control of regulation

The three ages of regulatory quality

International and national approaches

From regulation to better regulation

From Jacobs & Associates


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Early sets of principles– OECD 1995-97: 7 recommendations to governments– UK 1998: 5 principles transparency, accountability,

targeting, consistency, proportionality Maturity

– Mandelkern report (EU) (2001): six dimensions– OECD “performance” 2005 : Broad programmes,

impacts, transparency, competitiveness test, liberalisation, policy linkages

Current trends– National sets: Australia (2007) “best practice

regulation,” Ireland, Finland…– OECD review of 2005 principles (2012): post-crisis

adaptations

The search for “Principles” of regulatory quality


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2012 OECD Recommendation on Regulatory Policy and Governance (1)

Adopt explicit policy for regulatory quality. Apply open government, consultation Oversee procedures and goals of regulation to

foster quality. Integrate RIA into the early stages of the policy

process Review stock of significant regulations against

policy goals, to ensure that they remain effective, up to date, cost justified, cost effective and consistent.

Reports on the performance of regulatory policy and reform programmes

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2012 Recommendation on Regulatory Policy and Governance (2)

Supervise regulatory agencies Provide review mechanism accessible to

citizens and businesses at reasonable cost. Timely decisions.

Risk-based design and implementation of regulations. Responsive implementation and enforcement strategies.

Co-ordination mechanisms between levels of government to promote coherence of regulations.

Develop regulatory management capacities at sub-national levels of government.

Give consideration to all relevant international standards and frameworks for co-operationCH MONTIN, Pachuca (MX), 18 octubre de

201214

Regulatory managementCommand &

ControlDue process Consistent

legallyAccessible

Inform stakeholders

RegulatoryReform (1995)

EffectiveEfficient

Competitive

Consult stakeholders

Regulatory governance

(2010)

Integrated objectives

Cycle approachIncl. M&E

Involve stakeholders

BR ≠ DeregulationBR = dynamic LT process acting on policies, institutions

and tools

The three ages of regulatory quality

GOOD BETTER SMART

CH MONTIN, Pachuca (MX), 18 octubre de 2012 15

One objective, three approaches

OECD

Regulatory policy

Think tankBest practice

forum

Market orientation

Public management

European Union

Better/Smart Regulation

SupranationalManage ‘Acquis communautaire’

SubsidiarityTransposition

Process-oriented

Inter-institutional

World Bank Group

Business climateDoing Business

(outcomes)

Development technical

assistance One stop shops

LicensingReg. guillotine


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Thematic work

Institutions for regulatory oversight Building capacities and introducing tools Preventing regulatory capture Ensuring policy sustainability Contributing to green growth Addressing risk in regulation making Coordinating multi-level regulation International regulatory co-operation


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Policy issues for government

actionDevelop policy

roadmap- choose the

policy instrument(s)

• Design new regulation

• Check current regulation

Enforce regulation

Monitor and evaluate

performance of regulation

REGULATION

OTHERPOLICYTOOLS

The 4 Cs

Consultation

Co-ordination

Co-operation

Communication

‘Regulatory Governance Cycle’

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European Better Regulation

Mandelkern

Predominantly legal

SimplificationConsultation

standards 2002

Barroso I (2005)

VP VerheugenCompetitiveness

test

Admin Burden Reduction Progr.

2007-12

SME test

Stoiber Group

Barroso II (2010)

Smart Regulation

Fitness checks

Cycle approach

Integration of evaluation,

infringements, complaints

CH MONTIN, Pachuca (MX), 18 octubre de 2012 19

Better Regulatory Design (Mandelkern)

Consultation

Access

AlternativesRIA

Admin burdens

SimplificationSTOCK

Stakeholders

The E

conomy

The Administration

+ Tools for ensure efficient implementation (including information, government forms, BPR,

OSS, inspections)

FLOW The econom

y


Increase social welfare through more effective social and economic policies

Boost economic development by encouraging market entry and competitiveness

Control regulatory costs and improve productive efficiency, particularly for SMEs

Improve the rule of law , transparency and participative democracy

Goals of Regulatory Reform


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Dimensions of the business environment

Administrative “One stop shop”, single window, inspections, licensing, standardized forms and corporate documents

Legal Commercial code, company law, collateral law, bankruptcy, labor law, infrastructure laws, PPP

Judicial Court procedure, case management, performance of judges

Electronic services (eGov)

Company/collateral registry, Credit bureau, Electronic signature, single ID, Paying taxes, Legal portal

Tax and Subsidies

Corporate tax, VAT, social contribution, registration duties, selective interventions


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How to present regulatory reform?

Deregulation, Reducing regulation• Korea, Taiwan, UK (2011), NZ

Improving business climate, reducing administrative burdens

• Australia, Netherlands, Belgium, Singapore

Better Regulation• UK, European Union, Ireland

Fighting bureaucracy• Germany

Administrative simplification• France, Italy, Portugal, Viet Nam

Regulatory reform• OECD, World Bank, US, ¨PR China, Poland, Netherlands, Thailand


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Country best practices

Transparency and open government• Denmark, Finland, Norway, US

Quantifying regulatory costs• Australia, NL, UK, US

Multilevel governance• Canada, Italy, Mexico

Simplification, one-stop-shop• Austria, Belgium, Mexico

Independent advisory bodies• Germany, NL, UK, Sweden


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Part 3Opciones para México

A look at the performance rankings: WEF and DB

Mexico and the OECD Lessons from France with a focus

on multi-level The world view

México en el GCI 2011- 2012


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Mexico,


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WEF 2012-13 ranking: 53rd (+5)


competitiveness strengths– deep internal market (11th), – a sound macroeconomic framework (40th),– good transport infrastructure (41st),– and fairly sophisticated businesses (44th).

persistent structural challenges – functioning of public administration (100th) – lack of security (137th

– low trust of business in politicians (97th). – Inefficient (rigidities) labor (102nd

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Doing Business 2012: overall 53rd (+1)

Doing Business commends México

Case study p. 32- 33

reports measurement of results from online one-stop-shop Tuempresa on number of registrations and reduction of corruption, as an example of multi-level cooperation to improve the business environment

México y la OCDE

Regulatory review 1999 Regulatory review 2004 Public management review, including RIG “Practicas y politicas exitosas para

promover la mejora regulatoria y el emprendimiento a nivel subnacional” (2010)

Guia para mejorar la calidad regulatoria de tramites estatales y municipales e impulsar la competitividad de Mexico

Regulatory review 2012 (on-going)CH MONTIN, Pachuca (MX), 18 octubre de

201231


2004 Regulatory review

Took stock of progress made since the 1999 review– Ley federal de procedimiento administrativo– COFEMER (“oversight body”) develops tools

Options for the future– Extend regulatory policy to include tax

policies, and coordination with subnational levels

– Clearer hierarchy of regulations– Better use of regulatory tools (drafting, ICT,

review)– Modernise framework of regulatory

authorities32

Best practices for multi-level BR and business

“Practicas y politicas exitosas para promover la mejora regulatoria y el emprendimiento a nivel subnacional” (2010)

Systematic review of regulatory and competitivity policies– Policies and institutional arrangements– Tools– Ease of doing business (emprendimiento)

Foreign examples of best practices from BC, Catalunya and Piemonte

36 recommendations

2012 update from OECD

Build on strengths– Good transparency around RIAs & registries– Admin burden measurement results

(calculator) Review legislation focusing on high-

impact texts Extend use of RIA at earlier stages of

policy and regulation, with minister signoff

Raise status of COFEMER and include advocacy

Align subnational BR on best performers and introduce coordination (like AUS COAG)

Introduce productivity screening


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Highlights from the French approach

Developed within the European Better Regulation agenda, and the reform-of-the-state policy

Emphasis on legislative stock management including quality drafting, publication and simplification

Intensive policies improving relations with users including massive egov, quality of official forms and quality of service

RIA made compulsory by constitution, to strengthen role of parliamentCH MONTIN, Pachuca (MX), 18 octubre de

201235

Multi-level better regulation in France

Unitary state– Consistent hierarchical legal order– No regulation delegated to regions and

other LA– Implementation powers for regions

(economic) and départements (social) provide flexibility

Recent reforms– Redistribution and harmonization of

functions– Moratorium on new legislation applicable to

LA– Strengthened evaluation capacity in

parliament– Screening of new legislation for additional

burdens


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Country Most original objective or content

Notable Institutions or tools

USRegulatory Reform

*Regulatory review, CBA, *challenge function

OIRAExecutive Order

UKReducing Regulation

*Principles; Policy statement, *RIA, *one-in one-out*local delivery; consultation

BREBRDO

CanadaSmart Regulation

*Multi-level coordination, international dialogue

Treasury Board

FranceQualité du droit

*Quality legal drafting; curbing overproduction of norms, SME policy;

Conseil d’Etat Legifrance

GermanyReducing bureaucracy

Reduction of *regulatory costs Normenkontrollrat

NetherlandsRegulatory reform

*Reduction of administrative burdens, e-company

ACTAL

BelgiumHuman Rules

*Small scale solutions to practical problems

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http://www.reginfo.gov/public/jsp/Utilities/index.jsp

http://www.whitehouse.gov/the-press-office/2011/01/18/improving-regulation-and-regulatory-review-executive-order

http://www.bis.gov.uk/policies/bre/principles-of-regulation



http://www.bis.gov.uk/assets/biscore/better-regulation/docs/r/10-1155-reducing-regulation-made-simple.pdf

http://www.bis.gov.uk/assets/biscore/better-regulation/docs/o/12-p96a-one-in-one-out-third-statement-new-regulation.pdf

http://www.bis.gov.uk/brdo

http://publications.gc.ca/collections/Collection/CP22-78-2004E.pdf

http://www.tbs-sct.gc.ca/ri-qr/processguideprocessus-eng.asp



http://circulaire.legifrance.gouv.fr/pdf/2011/07/cir_33427.pdf

http://www.legifrance.gouv.fr/Droit-francais/Guide-de-legistique

http://www.conseil-etat.fr/

http://www.legifrance.gouv.fr/

http://www.gsema.gov.pt/index2.php?option=com_docman&task=doc_view&gid=3&Itemid=32

http://www.gsema.gov.pt/index2.php?option=com_docman&task=doc_view&gid=3&Itemid=32

http://www.bertelsmann-stiftung.de/cps/rde/xchg/SID-DEDCE640-135680DD/bst_engl/hs.xsl/93908_93969.htm

http://www.normenkontrollrat.bund.de/

http://www.normenkontrollrat.bund.de/

http://www.government.nl/issues/reducing-the-regulatory-burden/regulatory-burden-for-enterprises

http://www.government.nl/issues/reducing-the-regulatory-burden/regulatory-burden-for-enterprises

http://www.actal.nl/english/about-actal/

http://www.humanrules.be/


Australia Best practice regulation

*Deregulation Policy Productivity Commission

Russian Federation

Regulatory Reform

RIA BR Council (tbc)

Mexico Regulatory Reform

Red Tape, sub-national BR COFEMER

Taiwan, China

Regulatory Reform

National competitiveness, *Doing Business ranking

EU Better Regulation (2002)Smart Regulation (2010)

*RIA, Streamlining acquis communautaire, cutting red tape, *consultation, *ex post evaluation (2010)

IAB, Stoiber Group

OECD Regulatory Governance

Reviews of national capacities

Recommendation for regulatory policy

World Bank

Regulatory Reform

Improving business and investment climate

Doing Business report

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http://www.finance.gov.au/deregulation/deregulation-division.html

http://www.pc.gov.au/projects/study/regulation-reforms

http://www.pc.gov.au/projects/study/regulation-reforms

http://ria-center.hse.ru/en/

http://www.oecd.org/document/15/0,3746,en_2649_34141_44973455_1_1_1_1,00.html

http://www.cofemer.gob.mx/

http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0012725

http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0012725

http://ec.europa.eu/governance/better_regulation/index_en.htm

http://ec.europa.eu/enterprise/policies/smart-regulation/administrative-burdens/index_en.htm

http://ec.europa.eu/governance/better_regulation/consultation_en.htm

http://ec.europa.eu/governance/impact/iab/iab_en.htm

http://ec.europa.eu/enterprise/policies/smart-regulation/administrative-burdens/high-level-group/index_en.htm

http://ec.europa.eu/enterprise/policies/smart-regulation/administrative-burdens/high-level-group/index_en.htm




https://www.wbginvestmentclimate.org/

http://www.doingbusiness.org/

http://www.doingbusiness.org/

To continue the study…

This presentation is online• http://montin.com/documents/mexico.ppsx

Updates on current events and trends:• http://smartregulation.net

Contact:• montin @ smartregulation.net• charles-henri.montin @ finances.gouv.fr


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30a conferencia nacional sobre mejora regulatoria méxico– 18 octubre 2012

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