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https://www.oecd.org/en/publications/smart-regulations-strong-business_93d38770-en.html
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Title page 1
Contents 6
Foreword 4
Editorial 5
Abbreviations and acronyms 9
Executive summary 10
1. Introduction: Regulating in a fast-changing and complex world 13
1.1. New challenges have changed the context for rulemaking... 14
1.2. ...leading to regulatory burdens and complexity affecting economic performance 15
1.3. Established rulemaking practices and institutions have not been effective enough in keeping burdens in check... 16
1.4. ...putting regulatory simplification and burden reduction front and centre 18
References 21
2. Diagnostic: Drivers of regulatory burden and complexity 23
2.1. Regulatory burdens are a significant - and growing - challenge 25
2.2. Priority sectors and policy areas: where are burdens most acute? 29
2.3. Pain points and drivers of burden: How are businesses most impacted? 36
2.3.1. Drivers of burden in regulatory implementation 37
2.3.2. Drivers of burden in regulatory design 41
References 47
3. Diagnostic: Trends and challenges in regulatory simplification and burden reduction 50
3.1. A new wave of simplification initiatives 52
3.2. Simplification tools and their challenges 53
3.2.1. Digital tools 54
3.2.2. Measurement and methodologies 58
3.3. Institutional barriers to simplification 60
3.3.1. Multi-level and whole-of-government co-ordination challenges 60
3.3.2. Lack of internal and political support 62
References 64
4. Way forward - towards efficient and effective regulatory simplification 67
4.1. Clearing the clutter: simplify existing rules for better outcomes 68
4.1.1. Strategically focus simplification efforts 69
4.1.2. Build buy-in and manage expectations through use of evidence and clear communication 72
4.1.3. Invest in efficient ex post evaluation for continuous improvement 73
4.2. Smoothing pathways: streamlining administrative procedures to ease compliance 76
4.2.1. Close the gap between regulatory design and effective implementation 76
4.2.2. Apply a risk lens for targeted inspections and procedures 78
4.2.3. Leverage data and digital technologies to foster efficiency and effectiveness 80
4.3. Glory in prevention: Future-proof rulemaking to secure lasting impact 82
4.3.1. Shift culture and behaviour from a focus on process to outcomes 83
4.3.2. Embrace a forward-looking and adaptive regulatory approach 84
4.3.3. Enhance co-ordination across levels of government, borders and sectors 86
4.3.4. Strengthen trust through regulatory reform 88
References 89
Annex A. Typology of simplification and regulatory burden reduction approaches and tools 92
Figure 1.1. Public value and regulatory costs and complexity 19
Figure 2.1. Regulatory requirements and compliance top business challenges 25
Figure 2.2. Business organisations think the regulatory environment has negative impacts on competitiveness, investment, and innovation 26
Figure 2.3. Across countries, business organisations and government respondents agree that regulation and bureaucracy are excessive 26
Figure 2.4. Business organisations see regulatory requirements as disproportionate - government respondents have more balanced views 27
Figure 2.5. Government respondents and businesses organisations across countries agree that full compliance is too costly 28
Figure 2.6. Business organisations countries see administrative costs to be rising 29
Figure 2.7. Business organisations and governments agree SMEs bear higher costs from regulatory and administrative burdens 30
Figure 2.8. Construction and public administration/procurement highlighted as priority sectors by both government respondents and business organisations 32
Figure 2.9. Government respondents and business organisations both prioritise the need to simplify construction permits and taxation 33
Figure 2.10. Reporting costs reported most widely as a cause of burdens, ahead of substantive compliance costs 36
Figure 2.11. Business organisations highlight significant administrative costs associated with reporting and record-keeping 38
Figure 2.12. Business organisations in most countries indicate lack of co-ordination and timeliness by government in permit applications and decisions 39
Figure 2.13. Business organisations across countries feel permitting is disproportionate to risk and unpredictable 40
Figure 2.14. Enforcement is seen as duplicative and overly punitive by business organisations 41
Figure 2.15. Business organisations in most countries disagree that information on regulations is consolidated online 42
Figure 2.16. Business organisations in most countries feel regulations are difficult to understand 43
Figure 2.17. Businesses face high administrative costs in keeping up with regulatory changes 44
Figure 2.18. Business organisations in most countries feel regulation is unpredictable 45
Figure 2.19. Businesses face high administrative costs in obtaining legal and compliance consultation 45
Figure 2.20. Business organisations and government respondents across countries disagree on the consistency of regulations 46
Figure 3.1. Burden reduction and simplification are a clear priority for governments 52
Figure 3.2. Economic and efficiency goals drive the majority of recent simplification initiatives 53
Figure 3.3. There is broad agreement that past efforts have only been partially successful 53
Figure 3.4. Digital tools and ex post evaluations most commonly deployed for simplification 54
Figure 3.5. Digital tools are mainly employed for data analysis and administrative automation 55
Figure 3.6. Data and interoperability are the biggest challenges to application of digital tools 58
Figure 3.7. Almost all governments are limited by data and resource availability in their measurement of regulatory costs and benefits 59
Figure 3.8. Lack of government co-ordination hampers simplification outcomes 61
Figure 3.9. Simplification co-ordination functions tend to be dedicated or centralised in governments 62
Figure 3.10. Insufficient resources, internal resistance, and lack of political support compromise simplification outcomes 63
Figure 4.1. Interactive platforms are used less to gather feedback on regulations compared to other tools 70
Figure 4.2. Ex post evaluation practices remain far from being fully developed 74
Figure 4.3. Only a minority of OECD Members systematically plan for implementation 77
Figure 4.4. Illustration of a risk-proportionate approach to licensing and permitting (L&P) 78
Figure 4.5. Governments can do more to encourage risk-based and responsive enforcement 79
Figure 4.6. The potential of data-driven enforcement and monitoring remains untapped 81
Figure 4.7. Consultation and impact assessment mainly focus on a preferred option 83
Figure 4.8. Governments are only starting to foster joined-up approaches to tackle cross-cutting challenges related to innovation and technology 87
Boxes 16
Box 1.1. The evolution of regulatory governance and simplification (1980s-2020s) 16
Box 1.2. Evidence base and methodological limitations 20
Box 2.1. The SME Test within regulatory impact assessment (RIA) 30
Box 2.2. Construction and housing: A priority sector for simplification and regulatory burden reduction 34
Box 2.3. Subnational variance in permitting carries economic impacts 40
Box 3.1. New Zealand's FormBuilder.govt initiative 56
Box 3.2. Automated reporting initiatives in Denmark and Estonia 57
Box 4.1. Key policy considerations - Clearing the clutter: Simplify existing rules for better outcomes 68
Box 4.2. France's broad consultation on simplification opportunities 69
Box 4.3. Spain's simplification agreements with stakeholders 71
Box 4.4. New Zealand's Regulatory Review Framework 75
Box 4.5. Key policy considerations - Smoothing pathways: streamlining administrative procedures to ease compliance 76
Box 4.6. Initiatives to streamline licensing and permitting 80
Box 4.7. Key policy considerations - Glory in prevention: future-proof rulemaking to secure lasting impact 82
Box 4.8. Horizon-scanning in the United Kingdom 85
Box 4.9. Transport Canada's regulatory sandbox to eliminate paper-based shipping documents 86
Figure A.1. Simplification and regulatory burden reduction across the spectrum 92
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