Regulatory Impact Assessment: A Survey of selected and emerging Economies

Abstract

Regulatory impact assessment (RIA) involves a systematic appraisal of the social, economic and environmental impacts of proposed regulations and other kinds of policy instruments before they are adopted. A vast amount of academic literature in the last decade has charted the diffusion of RIA in OECD countries and EU member states. However, relatively little is known about the extent to which RIA has been adopted and implemented in developing countries. The last research attempting to shed light on this issue over a decade ago found that a number of were beginning to apply some form of regulatory assessment but that its development was at an early stage. Since then RIA has become almost universally adopted in OECD and EU member states as well as promoted as a tool for good (regulatory) governance in developing countries by international donors and organizations such as OECD, the International Finance Corporation of the World Bank Group (IFC). What, then, is the extent of RIA adoption and implementation in these countries today? This working paper addresses this question through a survey of RIA in 14 developing and emerging economies based on documentary analysis as well as semi-structured interviews with key stakeholders. The survey explores topics such as the legal and institutional framework of RIA, organizational capacity, and use of tools and methods (e.g. Cost Benefit Analysis). The results suggest that while an increasing number of developing countries have made efforts to introduce RIA in their decision making processes, these efforts have not yet led to a sustainable RIA system which significantly contributes to the good regulatory governance of these countries.