Foreword

As noted in the 2012 OECD Recommendation of the Council on Regulatory Policy and Governance, every government should seek to establish a regulatory framework that contains quality regulations, which achieve legitimate public policy objectives without imposing unnecessary costs on business and citizens.

The Recommendation provides governments with clear and timely guidance on the principles, mechanisms, and institutions needed to improve the design, implementation and review of their regulatory frameworks, with a focus on the highest standards. One of the main mechanisms promoted by the Recommendation is a system for the ex ante evaluation of prospective regulations, in order to ensure their quality.

Quality regulations can foster innovation, facilitate entry into new markets, promote the adoption of international standards, and enhance competition; at the same time, they can help achieve societal objectives such as protecting the environment, consumers, and workers. All this contributes to increased productivity and inclusive growth.

The report identifies the legal and institutional framework, and the processes followed in Peru to issue regulations in the period 2014-16. It evaluates those elements taking as reference the most relevant practices of the regulatory impact assessment system in OECD countries. It offers recommendations to help Peru step up its efforts to enhance the quality of its regulations and thus contribute to improving economic growth and social development in the country.

This report also monitors the implementation of the findings and recommendations from the 2016 OECD Review of Regulatory Policy in Peru: Assembling the Framework for Regulatory Quality, which suggested that Peru should introduce a system of regulatory impact assessment for draft regulations and regulations that are subject to modifications, as part of its administrative procedures.