RIA – An Art and not a Science
Faisal Naru
Head of Better Regulation
DAI Europe Ltd
November 2007
Washington
London
Johannesburg
Ramallah
Presentation Outline
1. What is RIA?
2. Rationale behind RIA
3. Elements of a RIA framework
4. International Experience of RIA and Lessons Learnt
1. What is RIA?
?
1. What is Regulation?
Any government intervention that
has an impact on individuals,
institutions, organisations or groups
within the private or public sector and
in general on society.
1. What is RIA? – a Document
Core structure of the RIA Document
Title of Proposal
Purpose and Intended Effect
The Policy Problem
Options
Impacts
Distribution of Impacts
(Results of) Consultation
Compliance
Monitoring and Evaluation
1. What is RIA? – a System
RIA – The System
Fits Policy Making Cycle
Process that is Iterative
Ensures Consultation
Process for
Communication
Opportunity for Scrutiny
Avenue to Challenge
Method to Obtain Buy-In
Public
Debate
Parliament
Public
Debate
Decision
Makers
Cabinet
Public
Debate
Decision
Makers
Ministry
Policy
Makers
2. Rationale behind RIA
 Economic Reforms to improve the Business Enabling
Environment (BEE) and Economy
 Link between Regulatory Reform & Quality of BEE now better
understood by Key Economic Stakeholders
 Growing focus on Better Regulation initiatives that:
 Address both Qualitative & Quantitative aspects of regulation
 Establish simpler, appropriate and sustainable regulatory regimes
 Support high quality, low cost laws and policies that reduce regulatory costs,
risks and barriers to competition facing firms
 Protect essential public interests
 RIA is tool for controlling the flow of NEW policies,
legislation and regulations.
3. Elements of an RIA framework
Political will and commitment
at top
Commitment/Buy-In/Trust for
reform and change
Centrally based body in
Government
Common Language/
Dialogue with Stakeholders
Institutional Resource
4. International Experience &
Challenges
Need for Government policy endorsement and commitment
Policy consultation and dialogue frameworks essential
Policy inconsistency/competing priorities, and weak planning a challenge
Institutional and individual champions play a key role at all levels
Importance of understand RIA as a strong and flexible policy tool – Art not Science!
Need to convert support for RIA into the use of RIA in day to day policy-making
Need to improve the quality of RIAs over time – not immediately!
Post- reform institutional capacity and coordination challenges
Potential for Institutional Resistance
Benefits of wider reform effort and a growing economy are a bonus
4. Lessons Learnt
 Anticipate the full impact of political environment constraints at the design stage
 Understand country specific and often complex social, economic and political
realities
 Recognise importance of stakeholder input and ownership
 Understand importance of goal based regulations and need for public education
and awareness
 Appreciate limitations of formal government policy endorsement
 Need to align more closely the many ongoing reform initiatives
 Keep focus on the underlying message: to improve flow – Art not Science!
4. Conclusions:
Regulating Better in the Future
 Understand the local political economy, set realistic time frames & a strong
accountability mechanism
 You can start small
 Find Champions at all Levels
 Build momentum through ‘Quick Wins’
 Develop a PPP approach and up-skill stakeholders to engage
 Ensure effective scrutiny of the process essential
 Then you can Build Institutional structures to manage the flow of regulation
RIA is an Art NOT a Science!
Thank You
Faisal Naru
Head of Better Regulation
Email: faisal_naru@dai.com
Telephone: +44 207 420 8600
Address: DAI Europe Ltd., 2nd Floor, Strand Bridge House,
138/142 Strand, London WC2R 1HH, UK