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Transcript of Era of Economic Liberalisation – post 1991 Role of the State redefined New Economic Policy –...
CUTS SEMINAR ON “ADOPTION OF REGULATORY IMPACT ASSESSMENT IN INDIA: POLITICAL ECONOMY
CHALLENGES – HOW TO OVERCOME”
Presentation by-
Rohit R Brandon IAS (R)[email protected]
30 October 2015
The Context Era of Economic Liberalisation – post 1991 Role of the State redefined New Economic Policy – Open – Competitive –
Growth Model Over load of regulation, laws and rules Market driven Private Sector Participation Investment based - Infrastructure
Development in Key Sunrise Sectors New Regulatory Environment required Ease of doing business – key to Investment Make in India Initiative / Start Up India
The Agenda for Change Reinventing Government – More Governance – Less
Government Redefining roles, procedures, practices under New Public
Management Public Services Reforms for greater Efficiency,
Transparency, Accountability Competitive Market model for Delivery of Public Services
and Public Goods Separation of Owner, Operator and Regulator of Public
Utilities / Services Need for Independent and Fair Regulators Need a review of regulations and laws The Twin Triggers of Demand and Growth for India’s New
Political Economy Right based and People First Paradigm
The Challenges Over dependence on Public Spending and Externally
funded Investment Policy paralysis on FDI and Private Investment Difficulty in ensuring Fair practices, open
competition and level playing field Imperfect Markets and Big Monopolies Weak Regulatory Framework for Contracts and
Services Need New Laws and Mechanism for Regulators Weak tracking systems for PPP and Big Projects Archaic rules and regulations – plethora of laws No Statutory requirement for RIA, SIA and EIA
The Experience so far… Power Sector Reform – The “Captive” Regulator The Telecom Sector – TRAI 1997 under test for Net Neutrality Corporate Business and Commerce – SEBI The Paper Regulator Environment – The Pollution Control Boards still the “license -
permit raj” Regulator Waste Management – The Missing Regulator Drugs and Medicines – The Doctored Regulator Food Safety / Standards – FSSAI 2015 The Toothless Regulator Traffic and Road safety – TABs as The Reluctant Regulator Higher Education – UGC The Over-regulating Regulator Banking Sector – RBI The Empowered Regulator Insurance – IRDA as the Evolving RegulatorNote – Constitutional bodies and some Centrally empowered
Authorities such as ECI, RBI and TRAI have performed better with greater legitimacy.
Case by Case AnalysisWhy Regulators fail to Regulate - Paper Tigers – More form, less substance Lack of Long Vision, Populism and Symbolism Patronage Posts for retired Civil Servants Short Term and Unfinished Reform Lack of ownership in Aid driven Reform Lack of independence and credibility Frequent Policy change and uncertainty Long and Slow Legal Process & litigation overdose Lack of Model Code, Documentation using RIA Lack of Accountability, Public Scrutiny, Self Audit Lack of clear Mandate and Mission Lack of independent evaluation/certification by RIA Failure to enforce Rule of Law
RIA for Regulator Autonomy and Authority
How Regulators can do better – Separation of the State as Owner of Public Utilities, the Service Provider
and The Regulator Capacity building and Training of Service Provider entities/Companies,
Regulator and Agency for RIA RIA to enhance autonomy of Regulator for rule making, rule application,
due diligence and litigation RIA can reduce Trust deficit – enhance credibility by using independent
agency such as CUTS for training, course correction and assessment of design and process faults and problems in getting clearances etc.
RIA for a reality check on risks & delays and difficulties in doing business RIA as a tool to review and assess existing laws, rules and procedures RIA can help reduce over regulation ( The Sun-set principle ) RIA as a measure of productivity, competition and quality RIA to measure cost benefit and certify fair and just regulation RIA to enhance and ensure Regulatory Independence RIA like EIA or SIA is an instrument to assess Need & Impact of
Regulation
The Bottom Line
While RIA promotes Regulatory independence, only an Independent Regulator can truly undertake RIA
Need to mainstream RIA and end the License-Permit Raj culture in India
RIA can reduce Cost of Doing Business and enhance Ease of Doing Business in India ( from rank 130 in 2015 to first 100 in 2016-17)
THANK YOU