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Weak regulatory policy hurting growth in Chile

 

A lack of regulatory oversight is hurting economic growth in Chile, according to a new OECD report.

The report, “Regulatory Policy in Chile” states, while the South American nation has taken steps in recent years, more work needs to be done to improve how it prepares and issues laws and regulations.

“Chile should make it a priority to improve its regulatory framework to help achieve its economic and social growth,” said OECD Secretary-General Angel Gurria, who delivered the report to Chilean President Michelle Bachelet.

Chile lags behind the OECD average on the impact of regulations, consulting with outside parties on their design and evaluating them over time, according to the report.

According to Gurria, “high quality regulation leads to better productivity and more inclusive growth. In today’s difficult economic times, it is imperative that governments pay attention to this.”

The OECD is recommending the government create an agency to oversee the rule-making process. In addition, introduce more transparency and plainer language during the process.

Other recommendations in the report include:

  • Adopt a formal, explicit, binding and consistent whole-of-government regulatory policy with clear objectives and a communication strategy.
  • Develop mandatory standards and guidelines for the preparation of laws and regulations, including compulsory consultation practices and forward planning.
  • Introduce regulatory management tools such as regulatory impact assessments and ex-post evaluations.
  • Consolidate and broaden the administrative simplification program in co-ordination with digital government initiatives.
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Michael Sutherland-Shaw

Michael Sutherland-Shaw

Marketing Communications Specialist at FreeBalance
Michael works in the marketing and communications department following a career in journalism. Michael is currently learning Ruby on Rails and loves discovering new music.
Michael Sutherland-Shaw

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