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Mexicos Federal Regulatory Improvement Programme: Experience and Future Priorities

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... fertilizers and pesticides, electricity reform, and freedom of information. ... Reform of electricity sector and freedom of information act. ... – PowerPoint PPT presentation

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Title: Mexicos Federal Regulatory Improvement Programme: Experience and Future Priorities


1
Mexicos Federal Regulatory Improvement
Programme Experience and Future Priorities
Carlos Arce Macias Head, Federal Regulatory
Improvement Commission Mexico (52)
57.29.92.30 carce_at_economia.gob.mx
  • Singapore, February 2001

2
The need for regulatory improvement
  • Began in 1989 as a natural complement to the
    process of trade liberalisation (1986)
  • Financial crisis of 1994-1995 gave added impetus
    to the reform process
  • General need to improve economic performance and
    job creation in an environment of fiscal
    austerity.

3
Reform of the Federal Administrative Procedures
Law (2000)
  • Unanimously approved by Congress
  • Strengthened and consolidated regulatory
    improvement programme
  • Created Federal Regulatory Improvement Commission
    (COFEMER), with technical and functional
    independence, and greater review powers
  • Created Regulatory Improvement Council (business,
    academic, labor, rural and government
    representatives)

4
Review, elimination and simplification of
formalities
  • Federal Registry of Formalities and Services
    contains information on requirements, processing
    times, office locations and forms for nearly all
    business formalities.
  • Citizen formalities must be included by May 2003.
  • Number of formalities reduced by 45 from 1996 to
    2000, and 95of remaining simplified.
  • Formalities not registered by May 2003 will no
    longer be applicable.
  • Register of Accredited Persons must be created.
    Allows faster processing of formalities.
    Complement to e-government.

5
Review of draft regulations
  • Since 1996, more than 800 draft legislative and
    administrative proposals reviewed in detail with
    the help of the Regulatory Improvement Council
    and ad hoc private sector working groups.
  • All regulatory proposals are public, and must be
    sent to COFEMER at least 30 working days before
    adoption.
  • Transparency and analysis-based review process
    (regulatory impact statements, public
    consultation, net benefit to society).

6
COFEMER reform proposals
  • COFEMER can diagnose the quality of existing
    regulation in specific regulatory areas and
    propose reforms to the head executive.
  • Reforms carried out include natural gas law
    and implementing rules (1995), civil and
    mercantile judicial procedures (1996), standards
    Law (1996), mining law (1996), competition law
    implementing rules (1998), and Federal
    Administrative Procedures Law (2000).
  • New diagnoses have been prepared for water
    distribution and conservation, medical devices,
    fertilizers and pesticides, electricity reform,
    and freedom of information.

7
Regulatory reform across levels of government
  • Since 1995, the need for better co-ordination and
    congruence between the federal, state and local
    governments was explicitly recognised.
  • COFEMER provides technical advice to states and
    municipalities.
  • Most state governments have created their own
    regulatory improvement programmes, and 23 have
    signed agreements with their main municipalities.
  • National state regulatory reform meetings every 6
    months.
  • The private sector publishes an annual state
    regulatory rankings.

8
Benefits of reform
  • Market openness and deregulation of entry, exit
  • and pricing in tradable goods has
  • Increased competition and innovation
  • Improved quality of services
  • Lowered prices
  • Increased resilience to economic shocks
  • Regulatory reform also
  • Directs public resources to their most productive
    uses
  • Improves policy co-ordination
  • Creates transparency and supports democratic
    values
  • Strengthens rule of law

9
Future priorities
  • Consolidation of the programme (implementing
    rules for review criteria and impact
    assessments).
  • Training and capacity building.
  • Co-operation with states and particularly
    municipalities.
  • Public consultation and higher public profile for
    COFEMER.
  • Reform of electricity sector and freedom of
    information act.

10
APEC-OECD 2002
  • Mexico presidency of APEC.
  • Importance of continued Asia-Pacific cooperation
    in regulatory reform.
  • Plans for regulatory reform workshop in Merida,
    Yucatan in spring 2002.
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