Regulatory Policy: OECD Experience and Evidence

Regulatory Institutions

“…A majority of OECD countries, especially larger ones, have recognised the value of a formal role for some sort of an oversight authority. At the same time, countries where policy-making has a participatory and consensus-based nature have devised more informal oversight institutions or to forgo them altogether (Malyshev, 2006). However, the first option appears to be more relevant for Russia, where the complexity of the balance of power in its central government, in addition to its federal structure, would suggest formalising regulatory oversight functions.…”

“…Sectoral regulators usually have the form of separate agencies at arm's length from government, with delegated powers to implement regulatory policies in specific sectors. They are primarily found in utility sectors with network characteristics, such as energy and telecoms, and in sectors where prudential oversight is needed, such as financial services (Malyshev, 2006). OECD (2002) notes that independent regulators are most effective and credible when their independence and roles are enshrined in a statute with well-defined functions and objectives.…”

“…For the sake of classification, independent regulators may belong to four categories: ministerial departments, ministerial agencies, independent advisory bodies, and independent regulatory authorities (Malyshev, 2006). On a spectrum where institutions are classified according to their increasing independence from the executive, ministerial departments are the least independent format for regulatory agencies.…”

“…See Malyshev (2006) and Smith (1997a).  Access regulation: ensuring ex ante non-discriminatory access to inputs, especially network infrastructures.…”

“…From the standpoint of the governance, the experience of OECD countries suggests that accountability is better guaranteed by the choice of particular structures (Malyshev, 2006). For instance, a board is preferable insofar as it is prone to collegial decision-making, thus contributing to a greater level of independence and integrity.…”