Regulatory Impact AnalysisRegulatory Impact Analysis– – LebanonLebanon

Working Group IV: Focus Group on Working Group IV: Focus Group on Public Service Delivery, Public-Public Service Delivery, Public-

Private Partnership and Private Partnership and Regulatory ReformRegulatory Reform

Amman , 28, 29 & 30 April 2008Amman , 28, 29 & 30 April 2008

By Ms. Rita ChidiacBy Ms. Rita Chidiac

The Prerequisites for Introducing The Prerequisites for Introducing

RIA in LebanonRIA in Lebanon

Political Commitment to RIA : Political Commitment to RIA : Through the issuing of a decision from both the Through the issuing of a decision from both the

prime minister and the house speaker that prime minister and the house speaker that enforces better regulations and RIA.enforces better regulations and RIA.

Both The Council of Ministers and Parliament Both The Council of Ministers and Parliament to maintain high political support by issuing a to maintain high political support by issuing a law that commits both the legislative and law that commits both the legislative and executive to the RIA project.executive to the RIA project.

Responsibility, Management & Responsibility, Management & coordination of RIA programmescoordination of RIA programmes

The Ministry of Justice (MOJ) could have the The Ministry of Justice (MOJ) could have the leading role in the adoption of RIA. It would leading role in the adoption of RIA. It would be useful to have an inter-ministerial be useful to have an inter-ministerial committee where concerned ministries will committee where concerned ministries will be represented under the leadership of the be represented under the leadership of the MOJMOJ

the Ministry of justice and the inter-the Ministry of justice and the inter-ministerial committee, as mentioned in the ministerial committee, as mentioned in the answer to the previous question, adopt a answer to the previous question, adopt a regulatory policy program for better regulatory policy program for better regulationsregulations

There are mechanisms that regulate the There are mechanisms that regulate the flow of communication between the flow of communication between the various legislative, judicial and ministerial various legislative, judicial and ministerial entities.entities.

However, wHowever, we suggest to create a legal e suggest to create a legal and judiciary and judiciary central body with broad central body with broad responsibilities for regulatory reform and responsibilities for regulatory reform and associated proceduresassociated procedures similar to that in similar to that in Tunisia and linked to the MOJ with a Tunisia and linked to the MOJ with a mandate to mandate to monitor the quality of RIAmonitor the quality of RIA

Responsibility, Management & Responsibility, Management & coordination of RIA programmescoordination of RIA programmes

Needed Skills and Training for Needed Skills and Training for RegulatorsRegulators

No training for officials carrying out impact assessment . However No training for officials carrying out impact assessment . However The National School of Administration (ENA) can develop a training program to train public officers applying RIA.

Who are the persons – besides Who are the persons – besides those carrying out the RIA pilot those carrying out the RIA pilot projects, who would need such projects, who would need such

training?training?

The concerned officers in such training are:The concerned officers in such training are: heads of legal bureaus in the administration.heads of legal bureaus in the administration. the legal department staff at the office of the legal department staff at the office of

the prime minister.the prime minister. MPs members of parliamentarian MPs members of parliamentarian

committees in charge of studying and committees in charge of studying and approving law proposals.approving law proposals.

Resent situation analysis and Resent situation analysis and PreparationPreparation

The RIA model: structure and The RIA model: structure and analytical methodanalytical method

There is a department for legislation and There is a department for legislation and consultation in the MOJ, and a consultative consultation in the MOJ, and a consultative panel to review legislations in the parliament for panel to review legislations in the parliament for law updating, both can play a major role in law updating, both can play a major role in adopting and applying RIA.adopting and applying RIA.

Law projects usually include the motives behind Law projects usually include the motives behind them, only these do not involve RIA.them, only these do not involve RIA.

Lately the council of Ministers issued a decree Lately the council of Ministers issued a decree that requires all law projects to include an that requires all law projects to include an environmental impact assessment. environmental impact assessment.

There does not seem to be detailed guidelines There does not seem to be detailed guidelines as to how environmental impact assessment is as to how environmental impact assessment is carried out. Budgetary impact is not included in carried out. Budgetary impact is not included in the said decree.the said decree.

The RIA model: structure and analytical methodThe RIA model: structure and analytical method

The decree involving environmental The decree involving environmental impact assessment should be impact assessment should be complemented with a wider approach that complemented with a wider approach that includes budgetary impact.includes budgetary impact.

To date there are no criteria to apply for To date there are no criteria to apply for RIA model. Existing criteria are still too RIA model. Existing criteria are still too general.general.

Data collectionData collection In the process of reviewing a draft law the In the process of reviewing a draft law the

government consults with the concerned authority government consults with the concerned authority and requests data from it. This requires a more and requests data from it. This requires a more rigorous approach and the appointment of rigorous approach and the appointment of specialists to analyze dataspecialists to analyze data. however data needs however data needs constant development .constant development .

Institutions that could be sourced for data include: Institutions that could be sourced for data include: MOJ, Ministry of Finance, Ministry of Economy and MOJ, Ministry of Finance, Ministry of Economy and Trade, Ministry of Labor, Central Statistics Agency, Trade, Ministry of Labor, Central Statistics Agency, as well as all other ministries each within its own as well as all other ministries each within its own field. field.

The responsibility for supplying data is incumbent to The responsibility for supplying data is incumbent to the unit within the institution that is most concerned the unit within the institution that is most concerned with required data. In addition, these units will with required data. In addition, these units will probably require training and the assistance of probably require training and the assistance of expertsexperts

Target RIA efforts and Target RIA efforts and prioritisation prioritisation

The most challenging regulatory sectors in Lebanon are: telecommunications, Electricity , SME’s, and investment sectors.

Targeting sectors for RIA depends largely on the Government policies and priorities. In this regard, RIA needs to target business investments whether large or medium.

The adoption of RIA allows decision The adoption of RIA allows decision makers to make appropriate choices makers to make appropriate choices based on data that identifies the real based on data that identifies the real costs and benefits of a law project.costs and benefits of a law project.

RIA can be adopted as soon as a law RIA can be adopted as soon as a law project is initiated. to integrate RIA early project is initiated. to integrate RIA early helps prevent unnecessary helps prevent unnecessary expenditures.expenditures.

RIA in the policy-making process: RIA in the policy-making process: integration as early as possibleintegration as early as possible

Communicating the resultsCommunicating the results

Once the RIA project is adopted the Once the RIA project is adopted the government needs to publish all related government needs to publish all related studies and make it available to the public.studies and make it available to the public.

The audiences for governmental The audiences for governmental publications include the citizen at large, publications include the citizen at large, members of the public sector, the business members of the public sector, the business community, the banking sector, the community, the banking sector, the business and industrial sectors, the business and industrial sectors, the executive branch, the court of account executive branch, the court of account etc…etc…

Consultations are usually conducted after Consultations are usually conducted after the law project has been drafted in details. the law project has been drafted in details.

Involved in consultations are professionals Involved in consultations are professionals and labor unions, NGOs, the private sector and labor unions, NGOs, the private sector and specialists of various trades.and specialists of various trades.

The consultations are not formally The consultations are not formally publicized, only the media related these in publicized, only the media related these in details including the various comments and details including the various comments and counter-comments. Also the involved parties counter-comments. Also the involved parties make their views public using the media.make their views public using the media.

Consultation, Participation and Transparency

Consultations is part of the law making Consultations is part of the law making process in Lebanon, only it is more of a process in Lebanon, only it is more of a tradition than dictated by a law. tradition than dictated by a law.

All types of public consultations are used All types of public consultations are used including meetings, referrals. Informal including meetings, referrals. Informal consultations are conducted by the consultations are conducted by the ministerial or parliamentary committees. For ministerial or parliamentary committees. For example a special committee was created to example a special committee was created to draft a new election law; the committee draft a new election law; the committee publicly requested input from all political publicly requested input from all political parties and NGOs to input its projects or parties and NGOs to input its projects or thoughts on the issue involvedthoughts on the issue involved

Consultation, Participation and Transparency

TThere are guidelines and principles on how to here are guidelines and principles on how to develop laws and regulations, only these are not develop laws and regulations, only these are not well developed and do not match international well developed and do not match international standards.standards.

The parliamentary committee for updating The parliamentary committee for updating legislations is reviewing outdated laws and legislations is reviewing outdated laws and putting a program or timeline for carrying out the putting a program or timeline for carrying out the review.  Also each ministry can request the review.  Also each ministry can request the review of its own legislations when required or review of its own legislations when required or when these are becoming obsolete.when these are becoming obsolete.

The Office of the Minister for Administrative The Office of the Minister for Administrative Reform is reviewing many existing laws, Reform is reviewing many existing laws, particularly those related to ministries structures particularly those related to ministries structures and organization and others (e.g. the and organization and others (e.g. the ombudsmen law, right to information law, the ombudsmen law, right to information law, the Anti corruption law, modifying the illicit Anti corruption law, modifying the illicit enrichment law etc…).enrichment law etc…).

Apply RIA to existing as well as Apply RIA to existing as well as new regulationnew regulation

Next StepsNext Steps

Invite key players to a workshop to increase their Invite key players to a workshop to increase their awareness to RIAawareness to RIA

Seek the support of OECD to help organize the Seek the support of OECD to help organize the workshop and provide expert lecturers to participate in workshop and provide expert lecturers to participate in it.it.

The workshop to generate specific recommendations for The workshop to generate specific recommendations for the adoption of RIA, and develop a legal and structural the adoption of RIA, and develop a legal and structural framework and secure high political endorsementframework and secure high political endorsement

Need for coordinated efforts by both HE the ministers of Need for coordinated efforts by both HE the ministers of Justice and Administrative reform to rally political Justice and Administrative reform to rally political support for the development and ratification of a support for the development and ratification of a legislation to adopt RIAlegislation to adopt RIA

Implement the RIA legislation soon after its Implement the RIA legislation soon after its dissemination and develop implementation mechanisms dissemination and develop implementation mechanisms for it, including the training of HR in the legal for it, including the training of HR in the legal departments of various public institutions.departments of various public institutions.