Indicators and good practice database Christiane Arndt, Programme Co-ordinator Measuring Regulatory Performance, OECD Antonia Custance Baker Breakout session 2

6th Expert Meeting on Measuring Regulatory Performance

17 June 2014

• Are all questions on stakeholder engagement clear? Do any questions leave room for interpretation?

Questions for discussion

• Why do we need indicators on consultation?

• How can the REG indicators be complemented with data/indicators from other sources?

• How would you use a good practice database to complement the indicators? How could it look like?

Questions for discussion

• What are the pros and cons of different aggregation methods?

Questions for discussion

Tables with all answers of each

country

Indicators of Regulatory

Management Systems

Worldwide Governance

Indicator (WGI) on Regulatory Quality

Product Market Regulation Indicator

Degree of aggregation

• Simple weights (e.g. OECD Product Market Regulation Indicators)

• Expert weights (e.g. Indicators of Regulatory Management Systems 2008)

• Statistical weighting methods based on variation and correlation of data such as PCA, unobserved component model (e.g. Worldwide Governance Indicators)

• Users can set weights themselves online (e.g. Better Life Index)

Method of aggregation

See also: OECD, European Commission (2008), Handbook on Constructing Composite Indicators

OECD Product Market Regulation

Indicators

Worldwide Governance Indicators

Note: This graph summarises information about the existence of key elements of formal consultation processes for primary laws in OECD member countries. It

does not gauge whether these processes have been effective.

Questions: Weights: a) Is public consultation with parties affected by regulations a routine part of developing draft new primary laws? No=0, In some cases=0.5, Always=1

When is it conducted? a(i) at the inception of the legal proposal? No=0, Yes=0.75

a(ii) during the drafting of a law? No=0, Yes=0.5

If the answer is “always” or “in some cases” to a) Is consultation mandatory? No=0, Yes=0.5

b(v) Are there consultation guidelines? No=0, Yes=0.5

If so, are they mandatory? No=0, Yes=0.5

b(vii) What forms of public consultation are routinely used:

- Broad circulation of proposals for comment?

- Public notice and calling for comment?

- Public meeting?

- Simply posting proposals on the Internet?

- Advisory group?

- Preparatory public commission/committee?

If ticked, weight= 0.25, 0.5, 0.25, 0.25, 0.25, 0.25

b(viii) Can any member of the public choose to participate in the consultation? No=0, Yes=0.5

c(i) What is the minimum period for allowing consultation comments inside government? 1 week=0.125, 2 weeks=0.25, 4 weeks or more=0.5

c(ii) What is the minimum period for allowing consultation comments by the public, including citizens and business and civil

society organisations?

2 weeks=0.125, 3 weeks=0.2, 4 weeks=0.25, 6

weeks=0.4, 8 weeks= 0.5, 12 weeks or more= 0.75

d(i) Are the views of participants in the consultation process made public? No=0, Yes=0.5

d(ii) Are regulators required to respond in writing to the authors of consultation comments? No=0, Yes= 0.25

d(iii) Are the views expressed in the consultation process included in the regulatory impact analysis? No=0, Yes=0.5

d(iv) Is there a process to monitor the quality of the consultation process? (e.g. surveys or other methods, please specify in

comments)

No=0, Yes=0.5

d(v) Is guidance available on how to conduct effective consultation? No=0, Yes=0.5

Source: Question 9 / OECD Regulatory Management Systems’ Indicators Survey 2008. www.oecd.org/regreform/indicators

Formal consultation processes: Primary laws (2008)

0123456789

ITA

FRA

JPN

PR

T

LUX

USA BEL

CZE

ESP

AU

T

SVK

GR

E

NLD

TUR

ICE

DEU

HU

N

DN

K

MEX

NO

R

IRL

PO

L

FIN

AU

S

CA

N

NZL

KOR

CH

E

SWE

EU UK

5th percentile 95th percentile Index

9.5

Formal consultation processes: Subordinate legislation (2008)

0123456789

TUR

BEL

GR

E

ITA

ICE

LUX

PR

T

AU

T

SVK

NLD

FRA

DEU

DN

K

HU

N

CZE

ESP

CH

E

IRL

PO

L

NO

R

USA FIN

JPN

AU

S

MEX

NZL

CA

N

KOR

SWE

EU UK

5th percentile 95th percentile Index

9.5

Note: This graph summarises information about the existence of key elements of formal consultation processes for subordinate regulations in OECD member

countries. It does not gauge whether these processes have been effective. Questions: Weights: a) Is public consultation with parties affected by regulations a routine part of developing new draft subordinate regulations? No=0, In some cases=0.5, Always=1

When is it conducted? a(i) at the inception of the legal proposal? No=0, Yes=0.75

a(ii) during the drafting of a regulatory impact statement (RIS)? No=0, Yes=0.5

If the answer is “always” or “in some cases” to a) Is consultation mandatory? No=0, Yes=0.5

b(v) Are there consultation guidelines? No=0, Yes=0.5

If so, are they mandatory? No=0, Yes=0.5

b(vii) What forms of public consultation are routinely used:

- Broad circulation of proposals for comment?

- Public notice and calling for comment?

- Public meeting?

- Simply posting proposals on the Internet?

- Advisory group?

- Preparatory public commission/committee?

If ticked, weight= 0.25, 0.5, 0.25, 0.25, 0.25, 0.25

b(viii) Can any member of the public choose to participate in the consultation? No=0, Yes=0.5

c(i) What is the minimum period for allowing consultation comments inside government? 1 week=0.125, 2 weeks=0.25, 4 weeks or more=0.5

c(ii) What is the minimum period for allowing consultation comments by the public, including citizens, business and civil

society organisations?

2 weeks=0.125, 3 weeks=0.2, 4 weeks=0.25, 6

weeks=0.4, 8 weeks= 0.5, 12 weeks or more= 0.75

d(i) Are the views of participants in the consultation process made public? No=0, Yes=0.5

d(ii) Are regulators required to respond in writing to the authors of consultation comments? No=0, Yes= 0.25

d(iii) Are the views expressed in the consultation process included in the regulatory impact analysis? No=0, Yes=0.5

d(iv) Is there a process to monitor the quality of the consultation process? (e.g. surveys or other methods, please specify in

comments)

No=0, Yes=0.5

d(v) Is guidance available on how to conduct effective consultation? No=0, Yes=0.5

Source: Question 9 / OECD Regulatory Management Systems’ Indicators Survey 2008. www.oecd.org/regreform/indicators

• OECD, Better Life Index

• OECD, Product Market Regulation Indicators

• Worldbank, Worldwide Governance Indicators

• OECD, Services Trade Restrictiveness Index – Regulatory Database

• OECD, Services Trade Restrictiveness Index – Policy Simulator

• OECD, Observatory of Public Sector Innovation

Links to indicators and databases

• What are the pros and cons of different aggregation methods?

• How would you use a good practice database to complement the indicators? How could it look like?

Questions for discussion

• Stockholm workshop • Drafting a list of practices based on findings from Stockholm workshop • Invitation to all RPC delegates and delegates from TUAC and BIAC to join the

Steering Group to be actively involved in the project • Consultation on list of practices with RPC delegates • Final list of practices

Phase 1

Discussions about assessing the implementation of the

Recommendation

June 2013 – March 2014

• Drafting of questionnaire based on list of practices • Discussion of draft questionnaire with Steering Group at one-day meeting • Revision of questionnaire based on comments from Steering Group members

and comments from experts across the OECD • Revised questionnaire circulated for piloting • Final clarification of questions, answer options and definitions based on pilots

and meetings in The Hague • Final questionnaire

Phase 2

Development of questionnaire

February 2014 – June 2014

• Questionnaire sent to countries • Preliminary analysis and identification of data issues • Discussion of survey results at RPC meeting in November with delegates,

TUAC and BIAC • Steering group meeting on construction of indicators • Adjustment and analysis of data

Phase 3

Data collection, cleaning and analysis

July 2014 – March 2015

• Draft Regulatory Policy Outlook and final data and indicators presented at RPC • Publication of Regulatory Policy Outlook and final database • Development of best practice database in selected areas

Phase 4

Publication and communication of results

April 2015 – end 2015

Timeline