by Yim Nolson

Vice-Chairman of Economic, Social and Cultural Council and RIA Project Director

at OECD Southeast Asia Forum, 25-26 March 2014

Bali, Indonesia

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• Background of RIA Project in Cambodia • Objectives of RIA Project in Cambodia • Structure of RIA Project in Cambodia • Key Aspects of RIA Scheme in Cambodia • Two-Stage RIA Process in Cambodia • Regulation Approval Process in Cambodia • Challenges

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• 2008 – Asian Development Bank (ADB) introduced and funded RIA program at the then Ministry of Industry, Mines and Energy under its Regulatory Enhancement Program for its Prakas (edicts) making process.

• May and June 2010 – 2 MOUs were signed between the Economic Social and Cultural Council (ECOSOCC), the Office of the Council of Ministers and ADB to implement the RIA project with ECOSOCC.

• October 2011 – Pohl Consultant and Associates, hired by ADB, was mobilized for RIA training and RIA development for Cambodia.

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• Improving the robustness of policy-making by ensuring that: Regulation is only implemented when there is a justified need. Only the most efficient forms of regulation are adopted. There is an adequate level of public consultation in the development of

regulatory measures. • Enhancing competition and regulatory efficiency by providing better

information to decision makers about the costs and benefits of introducing a new regulation and the alternatives which can achieve the same objective.

• Institutionalizing the principles of good practice in the regulation making process within line ministries, since Cambodia has no sunset clause and have no process either to check the redundancy/overlapping of the regulations.

• Improving good governance which is the central part of government’s agenda set in the Rectangular Strategy Phase III to achieve economic growth, employment and efficiency in objective.

• Creating website (www.ecosocc.gov.kh) and intranet of ECOSOCC for better communication and consultation access.

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• Executing Agency (EA) – ORIA in ECOSOCC with 4 units has a role in training, coaching, supporting, reviewing, publishing and reporting: RIA Unit with 9 staff CBA Unit with 2 staff i-Center with 3 staff PIU (admin unit) with 3 staff

• Implementing Agencies (IAs) – MoME, MoC, MoE, MoT, MoEYS, MoAFF and MoLVT – have a role in preparing Preliminary Assessment statement (PAs) or Regulatory Assessment Statement (RIS) for any proposed regulation. A template has been prepared for PAs. Each IA has a RIA unit with 4 staffs.

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• Improving information for decision makers: RIA will provide information on the costs and benefits of regulation and options to achieve the objective to decision makers enabling them to make better informed decisions.

• Simplicity: Most benefits of the RIA are likely to be gained through good consultation, simple logic, elementary calculations and rigorous testing of assumptions – rather than through the application of complex techniques. So the RIA in Cambodia would be light-handed.

• Transparency: Transparency enables good consultation and good governance. Improving transparency will help to achieve the final objective of the project.

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• Preliminary Assessment (PA): All regulatory proposals that may have impacts on business require a PA. The purpose of the PA is to provide a quick assessment of the proposal to identify whether the impacts on business or competition are significant

• Regulatory Assessment Statement (RIS): RIS is required for regulatory proposals if the PA confirms that the impacts are significant.

• Both PA and RIS consist of analyzing the seven elements of RIA – Problem; Objectives; Options; Impacts Analysis; Consultation; Conclusion; and Implementation.

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DRAFT REGULATION (Law, Royal

Decree, Sub-decree)

TECHNICAL MEETING

Prosing Line Ministry

Prakas submits to Line Minister

FULL CABINET MEETING

FINAL CHECK

MEETING

INTER-MINISTERIAL

MEETING RGC GENERAL SECRETARIAT

Office of the Council of Ministers

- ECOSOCC - Council of

Jurists

- Proposing Line Ministry - Secretary of State at OCM

- RGC General Secretariat

- Cabinet of DPM Sok An - National

Committee of Khmer

Linguistics

- RGC General Secretariat

- Secretary of State at OCM

- All Line Ministries

- Cabinet of DPM Sok An - ECOSOCC - Council of

Jurists - National

Committee of Khmer

Linguistics

- DPM SOK AN

- ECOSOCC

- Council of Jurists

- Secretary of State at OCM

- RGC General Secretariat

- Proposing Line Ministry

-Ministries concerned

- Cabinet of DPM Sok An

- National Committee of

Khmer Linguistics

- Prime Minister

- All Ministers

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DRAFT REGULATION (Law, Royal

Decree, Sub-decree)

OFFICE OF REGULATORY IMPACT

ASSESSMENT (ORIA)

TECHNICAL MEETING

Prosing Line Ministry

Prakas submits to Line Minister

FULL CABINET MEETING

FINAL CHECK

MEETING

INTER-MINISTERIAL

MEETING RGC GENERAL SECRETARIAT

Office of the Council of Ministers

- ECOSOCC - Council of

Jurists

- Proposing Line Ministry

- Secretary of State at

OCM

- RGC General Secretariat

- Cabinet of DPM Sok An - National

Committee of Khmer

Linguistics

- RGC General Secretariat

- Secretary of State at OCM

- All Line Ministries

- Cabinet of DPM Sok An - ECOSOCC - Council of

Jurists - National

Committee of Khmer

Linguistics

- DPM SOK AN

- ECOSOCC

- Council of Jurists

- Secretary of State at OCM

- RGC General Secretariat - Proposing Line Ministry -Ministries concerned

- Cabinet of DPM Sok An - National

Committee of Khmer

Linguistics

Cons

ulta

tion

with

ORA

on

RIA

- Prime Minister

- All Ministers

PA & RIS prepared

by IAs and

assessed by ORIA

IA prepares draft PAs/RIS with assistance from ORIA

ORIA reviews the adequacy of the PAs/RIS against the checklist

ECOSOCC website www.ecosocc.gov.kh

RGC General Secretariat /Minister

Draft sent to ORIA

Inadequate PAs/RIS

returned for revision

ORIA publishes completed PAs/RIS

IA packages PAs/RIS

with regulation

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Drafting and Assessment Process

• Institutionalize RIA process in regulation making within all ministries/institutions.

• RIA staff training, capacity building and commitment. • Improve quality and quantity of PAs/RIS – overestimation

of benefits in most cases. It needs more critical analysis of what the government can achieve by intervention.

• Improve consultation and participation from private sector. • Incentive to high performing ministry to motivate the RIA

champions. • Support for i-Center with more resources.

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Thank You For Your Attention

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