BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network, welcomed a new OECD recommendation to improve regulatory policy and governance and called for credible government action to effectively implement the recommendation’s principles.

Speaking at a meeting of the OECD Regulatory Policy Committee, BIAC Governance Committee Chair Jens Hedström underlined that now is the time for governments to act seriously. The effective implementation of the new OECD recommendation could not only restore confidence in governments, but also help boost economic growth and create private sector employment.

Mr. Hedström called the OECD recommendation a significant improvement over OECD guiding principles adopted in 2005, and said it provides the organization with an instrument with great potential to assist countries to improve the quality of regulation.

The recommendation rightly emphasizes the principles of open government and consultation with and engagement of stakeholders in the regulatory process, regulatory oversight and political accountability, the use of regulatory impact analysis and, in particular, the consideration of all regulatory costs including indirect costs, and systematic evaluation of regulations after they are adopted.

BIAC said the success of the OECD recommendation will to a large degree depend on its effective implementation in OECD member states and beyond. Mr. Hedström said business is willing to play an active role in this endeavor, and recommends benchmarking as a tool to regularly review the effectiveness and improvements in the implementation of the recommendation within OECD member states.

The text of the OECD recommendation is available at www.oecd.org/dataoecd/45/55/49990817.pdf.