Regulatory Policy in Chile

Government Capacity to Ensure High-Quality Regulation

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One of Chile’s biggest strengths is its very sound macroeconomic framework that reinforces its economic resilience. This is partly based on a prudent regulatory and supervisory framework governing the financial system. Furthermore, the government’s Agenda for Productivity, Innovation and Growth, co-ordinated by the Ministry of Economy with the participation of other ministries and state services, constitutes a good opportunity to use regulatory policy as a driver to reform the policymaking framework of Chile. For example, Chile has already made substantive progress in making regulations more accessible and communicating administrative requirements. However, while in Chile national regulations provide the general framework for administrative procedures and an efficient state administration, the lack of a comprehensive regulatory reform programme has reduced the possibility of achieving even better economic outcomes and unleashing resources to boost productivity. The regulatory policymaking framework lacks some key features seen in other OECD countries (e.g. stakeholder engagement, regulatory impact assessment, oversight body) that would make sure that regulations are designed in the best way. Good practices in rule-making procedures are also rather limited. This review presents the way forward for improving the government’s capacity to ensure high-quality regulation in Chile.

English Also available in: Spanish

Executive Summary

Chile is one of the most stable economies in Latin America, and has, over the last two decades, sustained economic growth and reduced poverty. Governance arrangements have contributed positively to attracting business and provided certainty for economic activities. However, the lack of a comprehensive regulatory reform programme may have reduced possibilities for achieving higher economic outcomes. Most line agencies and regulators prepare regulations based on unclear evidence as to how best to intervene, and good practices in rule-making procedures are limited. The recently launched National Agenda for Productivity, Innovation and Growth uses regulatory reform as a driver to foster its goals. The agenda includes regulatory reform measures to establish regulatory governance arrangements that support new policies and tools to improve the quality of regulation.

English Also available in: Spanish

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