In today’s rapidly-evolving policy environment, governments need to ensure that their regulatory frameworks are adaptive, efficient and proportionate to their underlying policy objective. By tackling unnecessary regulations, and ensuring regulatory frameworks are focused on better outcomes for people, governments can contribute to a supportive policy environment for strong, sustainable and inclusive growth. This fourth edition of the Regulatory Policy Outlook provides evidence-based recommendations for developing best practice regulatory frameworks to achieve these objectives.
Regulations are improved when those affected by them are considered and involved in the rule-making process. People are more likely to support and comply with rules when they have had meaningful opportunities to help shape them, allowing governments to better deliver on their promises. This year’s edition of the Regulatory Policy Outlook shows that OECD Members have made good progress in ensuring meaningful engagement with stakeholders, particularly consultation through digital platforms, extending feedback periods, and enabling the public to provide evidence on both the anticipated and actual impacts of regulations. However, OECD data also shows that a lack of effective communication with stakeholders about how their contributions have influenced decisions is leaving stakeholders disillusioned and less inclined to participate in future consultations.
This Outlook also highlights the importance of responsive and agile regulatory processes. Governments should move beyond reactive approaches and employ anticipatory regulation to proactively address emerging challenges. This involves using strategic intelligence tools, such as horizon scanning and strategic foresight, to anticipate future trends and risks. These tools can help governments adapt regulations in real time, ensuring they remain relevant and responsive to changing circumstances. Governments will also need to invest in regulatory capacity and co-operation among regulatory institutions.
New technologies offer significant potential to improve the quality of regulatory policy design and implementation. Advanced data analytics and regulatory experimentation can support more evidence-based regulatory decisions. Moreover, digital tools can improve regulatory delivery by streamlining processes, reducing burdens, and enhancing the efficiency of compliance monitoring and enforcement.
For environmental regulations, significant challenges remain in translating governments’ commitments into effective action while preserving economic growth. However, licensing and permitting remain barriers to new sustainable projects. To achieve meaningful environmental outcomes, governments should prioritise risk‑based regulation and focus enforcement efforts on areas where the greatest risks to the environment exist.
By building on the tools and strategies outlined in the Regulatory Policy Outlook, governments can seize new opportunities from the green and digital transformations, manage the risks and ultimately secure a sustainable and prosperous future for all.
Mathias Cormann,
OECD Secretary-General