OECD Guidelines for Implementing Performance and Quality Regulations Effectively


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Regulatory reforms are usually established to enhance the condition of national economies and to make them capable enough to adapt quickly to change. These structural reforms and regulations are essential to develop reliable macroeconomic and fiscal best practice policies. Being a long-term and multi-disciplinary procedure, the regulations assist in forming transparent accountable and robust regulatory structures.

The initial collection of the OECD policy recommendations to establish regulatory reforms was approved in 1997 by Ministers. They provide guidance to OECD member countries so as to enhance their regulatory policies and instruments, support competition and market openness and to minimize regulatory burdens.

The OECD regulations have evolved over the decade. Due to new experiences and events, the details of the policies have been enhanced and modified while the original 7 principles remain the same. A few of the key policies and regulations are:

Adopt Regulatory Reforms at a Broader Political Level

This states that the regulatory reforms should be applied at the highest political level and the key elements like policies, tools and institutions should be applied and implemented at every level of the government. It also states the importance of developing credible and effective coordination mechanisms, promoting coherence among all the objectives of major policies, clarifying the responsibilities to guarantee regulatory quality and enduring the capacity required to effectively respond to a fast-paced and continuously changing environment.

Examine Impacts and Evaluate Regulations

Social, economic and administrative regulations must be examined against good regulation principles from the viewpoint of those affected by those regulations instead of the regulator’s viewpoint. Contingency planning is also necessary for setting down regulations. Alternative regulations should be made as well wherever appropriate to offer firms and citizens greater scope.

The regulatory institutions and tools must be evaluated using performance-based examination to determine their effectiveness in contributing to economic performance and good regulation standards.

Assess Competition Policy

Sector regulation and competition law enforcement must be co-ordinates to guarantee consistency in the system and to promote trade liberalization and competition. Monitor the economy to prevent any monopolization, abuse of dominating position or anticompetitive mergers.

For this purpose, effective tools can be used like leniency programs in order to detect and discourage solid cartel violations. The competition authorities must be provided the capacity and authority to advocate reforms. Moreover, public awareness should be supported regarding the benefits and roles of competition.

Eliminate Unnecessary Regulatory Investment and Trade Barriers

Investment and trade should be liberalized internationally among the OECD members. Attention must be paid on aspects like non-discrimination, transparency and avoidance of trade restrictiveness that is not required. Furthermore, authorities should work towards harmonizing international standards, applying competition principles and streamlining the procedures of conformity assessment.

Outdated, duplicative or divergent requirements must be removed that give rise to regulatory investment and trade barriers. The criteria used for accepting foreign measures, qualifications and standards to be equal to domestic ones must be defined clearly.

These and many other important guidelines will assist in implementing quality and performance regulations effectively.

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