Indicator Configuration

Transparency of Rulemaking

Where citizens know the rules that govern their society and have a role in shaping them, they are more likely to comply with those rules. Corruption is lower and the quality of regulation is higher.

For the Global Indicators of Regulatory Governance, the team asked government officials and the private sector whether regulators commonly communicate with the public about proposed regulations, and if so, how. Communication could be through unified websites where all (or substantially all) new regulations are posted before adoption, websites specific to particular ministries, public gazettes, federal journals or targeted outreach to specific stakeholders.

Public Consultation in Rulemaking

Citizen access to the government rulemaking process is central for the fostering trust in the state and ultimate adherence to the new regulations. It is also a key part of business environments in which investors make long-range plans and investments. Greater levels of consultation are associated with a higher quality of regulation.

For the Global Indicators of Regulatory Governance, the team asked government officials and the private sector whether notifications of proposed regulations were accompanied by stakeholder consultations, and if so, how. Answers ranged from online solicitation of comments to public meetings, closed-door sessions seeking the input of specific individuals, and no consultations at all.

Impact Assessment

How governments assess the possible impact of new regulations on social, environmental economic factors in their country affects the shape and scope for each regulation. Unfortunately, impact assessment practices are insufficient and inconsistent in many countries around the world.

For the Global Indicators of Regulatory Governance, the team asked government officials and the private sector whether regulators conduct impact assessments when creating new regulations. The team also explored whether those impact assessment are released to the public or not, and if so, whether they form part of the consultation process.

Accessing Laws and Regulations

Free and easy access to the laws and regulations governing society is a precondition for the rule of law. If citizens, businesses and social organizations do not know the rules by which they are expected to play, they are laid open to predatory regulators and broad-based corruption. More simply, the overarching uncertainty around the legal environment harms investment, social cohesion and trust.

For the Global Indicators of Regulatory Governance, the team asked government officials and the private sector whether the laws and regulations that are currently in effect are codified and available in a single place, and if so, where. The team also asks whether that registry or website is updated regularly and consolidated to contain all amendments and revisions.

Challenging Regulations

The ability to challenge regulations after they are passed is a key component of a healthy regulatory system. This avenue for redress is particularly important for investors, as it boosts confidence where they see an opportunity to reverse perceived discriminatory regulations.

For the Global Indicators of Regulatory Governance, the team asked government officials and the private sector whether affected parties can request reconsideration or appeal adopted regulations to the relevant administrative agency. The data explore whether affected parties have access to administrative review by the regulatory body, administrative review by an independent body and/or judicial review.

Ex-post Review

It is also imperative to keep regulations up to date and ensure that they remain relevant to local businesses and investors alike.

The Global Indicators of Regulatory Governance project assesses whether regulators conduct ex-post reviews and whether such reviews are required by law.