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Bhutan: Introducing Regulatory Impact Analysis in Bhutan

As part of an ADB project, Jacobs, Cordova & Associates supported the Bhutan Government and, in particular, the Ministry of Trade and Industry (MTI) in building a sustainable framework and implementing capacities for Regulatory Impact Assessment (RIA) in domestic policy processes. The project helped regulators to draft higher quality laws with clear operational details, proportionate to their objective. The new RIA system will also provide an appropriate framework for allowing stakeholders to participate in discussions and for expressing their views in the making of laws and in regulatory. The project also helped assist the government to pilot RIAs on selected draft business laws, such as the Enterprise Registration Act and the Industries and Investment Act. The project kicked off with the use of the Quick Scan Questionnaire.

  1. Review the constraints of existing legal review and law-making procedures and processes;
  2. Designed an appropriate system, process, and procedures for conducting Regulatory Impact Assessment, including stakeholder consultation for legal and/or regulatory reviews and drafting of laws and regulations;
  3. Prepare two Pilot RIAs on the two acts/policies: Business Start Up and SME finance and training) in close consultation with the RIA working group, Ministry of Trade and Industry, and relevant stakeholders;
  4. Conduct consultation and stakeholder workshops to prepare the RIA;
  5. Develop and implement training modules and on-the-job training measures for RIA staff;
  6. Prepare a RIA Guidelines, indicating the procedures for conducting an RIA to guide RIA staff;
  7. Organize a study Tour to Australia (Victoria and Commonwealth) for 10 Bhutan Officials;
  8. Recommend necessary changes on the two acts/policies reviewed by the RIA pilot;
  9. In close consultation with the RIA working group, develop concept, feasibility, and plan (including budget) of institutionalizing RIA, and advocate institutionalization of an RIA unit;
  10. Recommend suitable training programs for capacity building of an RIA unit;
  11. Oversee and advise the overall proposed project work relevant to RIA, and prepare reports satisfactory to counterparts and ADB;
  12. Assist the government in implementing the components relevant to RIA and enhancing the legal and regulatory structure under the MSME SDP.

Bhutan, ADB, 2008-2011