Reforming the regulatory reform: general law on independent agencies in Brazil

Abstract

This paper addresses the effects of the new general law on independent agencies in Brazil. This regulatory reform sought to increase transparency and accountability, strengthen ex-ante evaluation, and improve decision-making. The research objective was to evaluate the possible organizational and institutional consequences of these changes. The study compared data collected from key actors in the 11 agencies referring to the period before the law with the regulatory scenario one year after the law was enacted. The results allow an unprecedented panoramic view of the agencies’ instruments under the inspiration of better regulation, and the new scenario can positively impact these structures’ credibility and trust. The study indicates an advance in the Brazilian regulatory governance model and opens space for future research.

Interests and Influence: Stakeholder Participation in the Regulatory Process

“…This type of control seems to be the rule in independent agencies in Brazil (Pó & Abrucio, 2006;Ramalho, 2009a), and not the "fire alarm", as indicated by McCubbins and Schwartz (1984). This scenario was recently crystallized in the General Law on Agencies (Ramalho & Lopes, 2022), which seems to indicate a preference by regulators for the systematic influence of stakeholders in their regulatory process, as the approval of this Law had the declared support of the federal regulatory agencies themselves (including Anvisa).…”

“…In this regard, it is important to emphasize that Brazilian agencies, created recently from the State reform in the 1990s, carry a need to justify their independent nature, which entails a reinforcement of the explicitness of their control mechanisms for society. This may explain the support given by the agencies themselves for the approval of the General Law on Agencies (Ramalho & Lopes, 2022), which brings dozens of obligations for themselves, including the mandatory need to implement mechanisms for social participation at different times of the its regulatory process.…”

“…This growth process has recently resulted in the definition of a varied set of mandatory resolutions for the creation and operation of participation mechanisms-aimed at the inclusion of stake-P. I. S. Ramalho, D. Rodrigo Open Journal of Political Science holders in the regulatory process-as well as periodic accountability activities to the National Congress and society in general (Ramalho & Lopes, 2022). In addition, it should be noted that the federal regulatory agencies themselves (including Anvisa) sought ways to strengthen support for the bill that contained measures to make public consultations and public hearings mandatory, among other forms of social participation in the regulatory process (Brasil, 2018).…”