Description

Regulatory impact analysis (RIA) is a systemic approach to critically assessing the positive and negative effects of proposed and existing regulations and non-regulatory alternatives. As employed in OECD countries it encompasses a range of methods. At its core it is an important element of an evidence-based approach to policy making. OECD analysis shows that the conduct of RIA within an appropriate systematic framework can underpin the capacity of governments to ensure that regulations are efficient and effective in a changing and complex world. Some form of RIA has now been adopted by nearly all OECD members, and they have all nevertheless found the successful implementation of RIA administratively and technically challenging. This publication brings together recent OECD research and analysis concerning methodological issues and country experiences with RIA. The collected papers cover a number of challenges to the effectiveness of RIA including: systemic factors which influence the quality of RIA; methodological frameworks that can assist RIA to improve regulation; guidance on using RIA to avoid unnecessary regulation of competitive markets; and a review of the use of RIA in the regulation of corporate governance with reference to several OECD countries. Taken together, this publication provides valuable, practical guidance on how to improve the performance of RIA systems to promote economic welfare through better quality regulation.