Date post: | 18-Nov-2014 |
Category: |
News & Politics |
Upload: | oecd-governance |
View: | 630 times |
Download: | 1 times |
MEXICO Enhancing trust in institutions for Regulatory
Policy
Virgilio Andrade Head of The Federal Commission for Regulatory Improvement
Bali, Indonesia March 25, 2014
OECD Southeast Asia Regional Forum: Fostering Regional Competitiveness and Sharing the Benefits of Sustained Growth
Contents
I. Evolution of Regulators in Mexico
II. Mexican Map of Regulators
III. Institutional framework of the Regulatory Agencies
IV. Principles for governance of the regulators
V. How to ensure trust in regulators?
VI. Regulatory Governance in Mexico
VII. Elements of the Regulatory Reform Policy in Mexico
VIII. Oversight of regulatory agencies
IX. Main Lessons
I. Evolution of Regulators in Mexico
(Only Offices from Ministries)
• Traditional Decrees • Traditional Bureaucratical Decisions
(From Offices to Agencies)
• Specialized bodies • Technical Resolutions • Specialized output rules
• Continuity • Accountability
(Telecommunications, competition, energy, healt,
banking, pensions)
(Implementation of OECD Principles)
• COFEMER • RIA • Consultation • Transparency • Ex Post Evaluation • Administrative burden reduction
• Regulatory reform across levels of government
• Total Autonomy from Government
• Highest level of authority
• Checks & Balances
Before 1990 1990-2000 2000-2013 2013 ->
Old Regulators Specialized Regulators
Regulatory Governance
Constitutional Regulators
Closed Economies Limited Democracy
Opening the Economy More Democracy Globalization
II. Mexican Map of Regulators
Regulators outside the government IFE (soon to be INE), Electoral
BANXICO, Monetary policy
CNDH, Human Rights
INEGI, Statistics
INEE, Evaluation of education
COFECE, Competition
IFT, Telecommunications
CONEVAL, Evaluation of poverty
Attorney General of the Republic (Today PGR), Law Enforcement
IFAI, Transparency
Anti-Corruption Body
Autonomous Constitutional Organisms
Executive Branch
Ministries
Offices (13)
Agencies (40)
Legislative Branch
(Congress)
Judicial Branch (Courts)
Traditional Constitutional Powers
• Inside a Ministry (ocassionally outside)
• Technical autonomy (ocassionally financial autonomy)
III. Institutional framework of the Regulatory Agencies
In Mexico there are three types of regulators:
Agencies
• Units inside a Ministry • No autonomy
Administrative Offices
Autonomous Constitutional
Organisms
• Outside the Federal Powers • Collegiate bodies with fixed
period (named by Congress, involves other instances)
Technical Trust Mixed confidence (Government/Body)
Confidence in the body (independent from confidence in the government) Political /Technical Trust (Autonomy & Sovereignity)
Inconsistent Trust (Depends on Confidence in Government)
13 (Transport)
40 (Health, Energy, Banking)
10 (Elections, Human Rights, Competition,
Telecommunications, others)
IV. Principles for governance of the regulators
OECD: “Best practice principles for the governance of regulators” Applicability of the principles in Mexico
Principle Office Agency Constitutional Autonomous
Clarity of Roles LOW MEDIUM - HIGH HIGH
Decision-making and governing body structure for independent regulators
NO NO / YES YES
Accountability and transparency DEPENDS ON GOVERNMENT MEDIUM - HIGH HIGH
Performance evaluation ACCORDING TO GOVERNMENT
Funding DEPENDS ON GOVERNMENT MEDIUM - HIGH HIGH
Preventing undue influence and maintaining trust RISKY RISKY RISKY
Commitment ACCORDING TO GOVERNMENT TECHNICAL
•TECHNICAL •SOCIETY &
PUBLIC OPINON
V. How to ensure trust in regulators?
Clarity in Roles
Clarity in Specific Rules
Clarity in Principles
Continuity in body structure
Consistency with principles Certainty Impartiality
Regulatory Governance (RIA-Transparency-Consultation-Ex post Evaluation)
Duplicated Roles
Ambiguous Rules
Lack of principles
Continuous changes in body structure
Inconsistency
Ambiguity
No Transparency
Lack of Policy Evaluation
Laws
Structure (Mechanism of
nomination)
Decisions
Strategies
VI. Regulatory Governance in Mexico
The OECD has played an important role in the development of the Regulatory Policy in Mexico through its recommendations, country reviews and best practice principles.
The 4 Cs
Consultation Coordination Cooperation
Communication
1. Development plan of policy
and policy instrument
choice.
2. Design of the new
regulations and reviewing
existing regulations.
3. Implementatio
n of the regulation
4. Monitoring and evaluating
the performance of the regulation
Public policy issues for
government action
Regulatory Governance Cycle
VII. Elements of the Regulatory Reform Policy in Mexico
Explicit Policy
Oversight body
High Level Support
The Regulatory Reform Policy (RRP) is established in the Federal Law of Administrative Procedure
The Federal Commisson for Regulatory Improvement (COFEMER) is in charge of the RRP
The President of Mexico directly designates the Head of COFEMER
Main Actors Regulatory Agencies + COFEMER + Stakeholders
(citizens, chambers of commerce, entreprises, others)
Tools
RIA (Risk Analysis, Competition Analysis, Cost-Benefit Analysis, RIA Ex post, etc)
Public Consultation (through: Internet, meetings with stakeholders, comments into the COFEMER´s opinions)
Transparency (Electronic files related to the Regulatory Process of each regulatory proposal are made public via COFEMER website)
Regulatory Reform Programs (deregulation & administrative simplification)
Measurement of Administrative Burdens (Standard Cost Model) Capacity building on Regulatory Reform Skills Regulatory Reform at the Subnational Level
VIII. Oversight of regulatory agencies
Executive Branch
Ministries
Agencies
Units with regulatory functions
Ministry of Economy
COFEMER Legislative Branch
Autonomous Constitutional
Organisms
Challenge: Universal application of the regulatory reform policy
IX. Main Lessons
Lessons Trust is an optimal value for good regulators
Enhancing trust on regulators should consider:
Types of regulators
Best practice principles (OECD)
Regulators need technical and political trust
Laws, body structure, decisions and strategies influence the level of trust in regulators Regulatory Governance / Reform is strategical for enhancing trust in regulators