This was the first event in a programme of work with the Republic of Montenegro to assist them improving the decision making capacities of their government through the better use of the Regulatory Impact Assessment process. In January 2012, Montenegro introduced a new requirement that all ministries must analyse whether a regulatory intervention is needed and, if so, which of the possible options is the best solution to the problem. The Regulatory Impact Assessment process (RIA) brings many benefits including government processes becoming more transparent and accountable to the public and greater likelihood of the proposed changes working, as stakeholders have been involved in the development of the solution from the outset. The RIA process enables Governments and citizens to understand the costs and benefits of potential changes and make informed decisions about things that affect their lives. However, more could be done to improve the effectiveness of the RIA in Montenegro. At present, the quality of fiscal analysis is varied, how policies will be monitored and measured is not always explained in sufficient detail and stakeholders are sometimes unclear about how the consultation process actually influenced the development of a policy. To support Montenegro in making the RIA system more effective this seminar enabled: 1) a review of the first year of implementation 2) the Ministry of Finance to share examples of good RIAs 3) hear practical solutions to the analytical challenges faced by Montenegro from EU Member States.

1. principally financed by the EU
A joint initiative of the OECD and the European Union,
Welcome and Overview
Bonjana Boskovic, Deputy Minister of Finance, Ministry of
Finance &
Rachel Holloway
Senior Policy Adviser
OECD SIGMA
24 June 2013
© OECD

2. Objectives
• Review the first year of the new analytical
processes within Montenegro, to enhance the use
of the RIA system
• Share learning from other EU Member States about
practical solutions to overcome the challenges that
Montenegro faces
• Identify practical options to address these
challenges
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3. Aims of event
• Improvements to RIA process in Montenegro
through officials gaining more knowledge of how
to:
 Consider and build issues surrounding implementation
of a policy into analysis;
 Undertake comprehensive analysis with limited
resources/expertise;
 Undertake good fiscal analysis, even if not an
economist.
• Opportunity to share experiences and learn with
other colleagues & the Ministry of Finance
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4. Why focus on policy and law?
• All societies set rules, or regulate, to govern
behaviour
• As societies become more complex, so does
regulation
• Overall level of regulation increases as people
expect higher standards, such as:
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Improved health and safety
Enhanced employment rights
Equality of opportunity
Fair competition and open markets
Protection for consumers
Better public services
Cleaner environment
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5. RIA Is a framework for questions
An RIA prompts key questions to be asked:
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What is the problem?
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Why do we need change?
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Where do we want to be?
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How could we get there?
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What are the possible impacts of these options?
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Which is the best route based on the evidence?
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How will legislation be implemented, enforced and monitored?
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Will the benefits justify the costs?
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6. And the big picture?
ECONOMIC GROWTH
EMPLOYMENT
OPEN MARKETS
ENVIRONMENT
EU
COMPETITIVENESS
FOREIGN
DIRECTED &
DOMESTIC
INVESTMENT
SOCIAL ISSUES
INNOVATION
WORLD BANK
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7. Challenges every country faces
• Most agree with the rationale of undertaking a
RIA
• The challenge is how to make the most use of this
discipline:
 ensure that it is done to a high standard
 avoid an obsession with process and box ticking
 develop the estimates of costs and benefits that are the
best available at the time
 the political decision makers are better equipped to
take decisions on the basis of such evidence
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