Laws and regulations govern the everyday life of businesses and citizens, and are
essential tools of public policy. The COVID-19 pandemic has highlighted the crucial
role regulation plays in the economy and society, but has also exposed gaps in domestic
and international rule-making that have cost lives and money. The 2021 Regulatory
Policy Outlook, the third in the series, maps country efforts to improve regulatory
quality in line with the 2012 OECD Recommendation on Regulatory Policy and Governance,
and shares good regulatory practices that can help close the gaps. It provides unique
insights into how countries approach the design, enforcement and revision of regulations,
and suggests where countries can best focus their efforts to ensure that laws and
regulations work as intended. Finally, it discusses some agile and innovative approaches
to rule making such as regulatory sandboxes, behavioural insights, and outcome-based,
data-driven and risk-based regulation.
Published on October 06, 2021Also available in: German, French
Few OECD countries have robust processes for consulting stakeholders at all levels
of the policy making process. Regulations are viewed as more fair if citizens have
a say in the process and are informed of the intended outcomes.
Co-ordinating across borders
To be effective in the global economy, laws, rules and regulations need to be better
connected and co-ordinated across borders. Tackling global challenges, such as the
COVID-19 pandemic and climate change, requires collective action.
Looking at outcomes
Governments need to assess whether rules work in practice after they set and implement
them. Less than one-quarter of OECD countries systematically check whether regulations
meet their objectives.
"This important report by the OECD comes at a time when many governments are taking stock of their regulatory actions in response to COVID-19 and assessing changes to achieve a stronger recovery and a more resilient future. It reveals deficiencies that will need to be addressed, and highlights the importance of regulatory approaches that support innovation. The guidance in the report is wide ranging, and more valuable for being grounded in the practical experience of member countries."
Gary Banks, Professorial Fellow at the Melbourne Institute for Applied Economic and Social Research and Chair of the Australian Statistics Advisory Council and former chair of the Australian Productivity Commission.