REGULATORY IMPACT ASSESSMENT
by Colin Kirkpatrick and Jenifer Piesse
CONTENTS:
Executive Summary
1. ENTERPRISE DEVELOPMENT AND THE ENABLING BUSINESS ENVIRONMENT:
1.1 Private Sector Development 1.2 An Enabling Business Environment 1.3 Encouraging Business Enterprise within the Context of Good Governance 1.4 Market Failure and the Enabling Business Environment 1.5 Market Failure and Government Policy 1.6 Is an Enabling Business Environment also a Sustainable Development Environment? 1.7 Summing Up
2. THE REGULATORY ENVIRONMENT
2.1 Defining Regulation 2.2 Regulatory Reform and the Enabling Business Environment
3. REGULATORY IMPACT ASSESSMENT (RIA)
3.1 Overview 3.2 What is Regulatory Impact Assessment (RIA)? 3.3 Estimating the Costs, Benefits and Risks of Regulation 3.4 Assessing the Impact of Regulation on the Business Environment 3.5 Summing Up
EXECUTIVE SUMMARY
In market economies, the private sector is the predominant source of economic activity. Much of the investment, human capital and knowledge which drives economic growth is sourced in the private sector and private enterprises are the major providers of employment, incomes and essential goods and services. The private sector can also provide expanding opportunities for poor people whether through self-employment in microenterprises or as employees in small and medium businesses.
Well functioning markets are needed if the private sector’s role in generating growth and incomes is to be sustained. But markets often fail to function well if left to themselves, and public intervention may be required when markets fail to deliver economically efficient outputs of goods and services. Intervention may also be needed if the markets generate an outcome that is inconsistent with broader goals of social justice or environmental sustainability.