Project Title

Traffic Light Score Methodology (TLSM) 

Project Year

2017   

Project Number

EC 03 2017A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EC 03 2017A 

Project Title

Traffic Light Score Methodology (TLSM) 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Renewed APEC Agenda on Structural Reform (RAASR) 

Project Year

2017 

Project Session

Session 1 

APEC Funding

139,588 

Co-funding Amount

Total Project Value

139,588 

Sponsoring Forum

Economic Committee (EC) 

Topics

Structural Reform 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Mexico 

Co-Sponsoring Economies

Peru; Philippines; Viet Nam 

Expected Start Date

01/07/2017 

Expected Completion Date

31/12/2018 

Project Proponent Name 1

Marcos Santiago Avalos Bracho 

Job Title 1

Regulatory Impact Assessments General Coordinator 

Organization 1

Federal Commission of Regulatory Improvement (COFEMER) 

Postal Address 1

Blvd. Adolfo Lopez Mateos #3025, 10th Floor, San Jeronimo Aculco, ZC 10400, Mexico City, Mexico 

Telephone 1

52-55 56299682 

Fax 1

Not Applicable 

Email 1

marcos.avalos@cofemer.gob.mx 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Marcos Santiago Avalos Bracho 

Project Summary

On 2016, the RAASR Individual Action Plans Report was published, highlighting the 21 member economies’ commitment to APEC’s structural reform agenda. In particular, 7 APEC economies compromised 19 regulatory reform actions in the following topics: 1) regulatory impact analysis, 2) good regulatory practices, 3) public consultation and 4) ex-post evaluation. Mexico’s actions, which are aligned to the ex-post evaluation topic, are: a) to promote the implementation of the Traffic Light Score Methodology (TLSM) in developing economies and b) to propose the TLSM to evaluate the quality of the Ex Post evaluation of regulations in APEC region. In line with the second action, the project considers, among other activities, the implementation of an specialized workshop and the elaboration of a methodology in Ex Post evaluation. The activities are expected to be implemented during 2017-2018 in Ho Chi Minh City, Vietnam in the margins of SOM3.

Relevance

In the TLSM “International Best Practices in Ex-Post Evaluation” section, the evidence suggests that a periodic Ex-Post evaluation is mandatory for all primary laws in only 17.64% of the OECD member countries, showing the low level of adoption of this practice in more than 32 countries. Also, among APEC economies, only Japan conducts Ex- Post evaluation for all primary laws. In line with these results, the project seeks to address the following problem: “Low level of implementation of ex-post evaluations on primary laws in 20 APEC member economies”. Thus, the project is relevant for 95% of the APEC economies and, among other benefits, will contribute to create more open, well-functioning, transparent and competitive markets. 

On APEC Funding Criteria, the project falls under Rank 1: Projects that demonstrate a direct link to promoting regional economic integration via free and open trade and investment, Structural Reform, implementation of the RAASR Individual Action Plan (IAP). Moreover, the project seeks to accomplish one of the two actions compromised by Mexico in its IAP, namely: to encourage other APEC economies into adopting and implementing TLSM. Finally, the project doesn’t link with other funding criteria.

Objectives

The key objectives of the project are: 

1) To build capacity on APEC economies in order to promote the TLSM implementation.

2) Ensure that workshop participants are able to apply the TLSM.

3) To measure the quality of the ex-post Regulatory Impact Assessment (RIA) and improve the quality of regulations. 

It is intended that the TLSM will become, in the medium run, into a Good Regulatory Practice (GRP), complemented with the valuable results of other evaluation models applied in the Ex-Ante and Ex-Post RIAs (e.g. Cost Benefit Analysis or Multi Criteria Analysis), since the design of the TLSM is strongly based on the Ex-Ante and Ex-Post RIAs information. Therefore, the TLSM is complementary to other quantitative/qualitative instruments.

Alignment

The project seeks to contribute to the first RAASR pillar “more open, well-functioning, transparent and competitive markets”, because better regulation encourages competition, efficiency and transparency. Indeed, regulatory quality is paramount not only to ensure the creation of new businesses, attract capital investment and sustain growth and competitiveness of the economic agents, but also to extend the life of small and medium-sized enterprises that daily are affected by regulatory constraints. Therefore, the construction of an indicator on the regulation performance (TLSM) will generate:

(1)     A sufficient oversight of whether the regulations are delivering the intended impacts.

(2)     A systematic feedback on the robustness of the assumptions used in RIA.

The project also expects to enable regulators for identifying and seizing improvements proactively on public policies, instead of reacting to unsystematic and non-parametrized external reviews and appraisals. Finally, it should be recalled that Ministers and high level officials of APEC Economies agreed at Cebu, Philippines, that “APEC should further advance its work on GRP”. Therefore, with this project is expected that TLSM becomes an additional tool of GRPs to measure and potentiate the structural reform programs.

Clarified the above, the project is also aligned with the Economic Committee (EC) strategic plan in three ways:

(1)     By accomplishing the instruction “Encourage economies to increase their efforts to promote international regulatory cooperation” (Cebu Statement), focused on tools for regulatory reform.

(2)     By supporting the task “capacity building to assist economies undertake structural reform” and becoming a targeted APEC-wide supported activity as an indicator and measure of structural reform.

(3)     By accomplishing the actions compromised in the RAASR Individual Action Plan 2017-2020.

Therefore, TLSM can become an important tool, not only for the regulatory reform, but also as an enhancer of Ex-Post RIA.

TILF/ASF Justification

APEC developing economies are in specific need of the project because Ex-Post evaluation of primary laws is not mandatory for them, meaning that they don’t trace regulation performance, even if proper parameters exist to measure the improvement of the status quo. In other words, they partially have progressed toward better regulations, but just to the stage of estimating a likely outcome of regulation and without requiring, ensuring and holding their regulators accountable of the fruition of the expected benefits and outputs of regulations. This means halfway of Regulatory Governance Cycle (RGC), due the lack of monitoring, evaluation and adjustment phases. 

The overall expectation with the issuance of new regulations and the extension of the validity of the current ones, is that their positive impacts for businesses, community and individuals exceed their negatives in such a way that the status quo is changed to improve. In this regard, it is worth remembering that: “There is growing attention being paid to evaluating the outcomes and assessing the performance of regulatory tools and institutions. This reflects three inter-related developments; first, policy makers involved in regulatory policies are being held accountable for the significant economic resources as well as the political capital invested in regulatory management systems now established in most OECD countries. Second, there is a growing interest in exploring how regulatory policies can be more evidence-based and supported by empirical findings. Third, the move toward ex post evaluation is part of the progressive development of regulatory policies, complementing the current dominant focus on ex ante evaluation, and aligning regulatory evaluation with the evaluation of other government policies and activities. The opportunities to conduct ex post evaluations of regulatory policies and to respond to their results with appropriate adjustments are substantially greater than in past years. The accumulation of policy learning in relation to these instruments provides opportunities to ‘benchmark’ existing practices, both in terms of the content of particular tools and in terms of the quality of their practical implementation.”[1]


[1] Expert Meeting on Regulatory Performance: Ex post Evaluation of Regulatory Policies held in OECD Headquarters in Paris on 22 September 2003.

Beneficiaries and Outputs

Outputs: 

1) One Workshop: A one and a half day workshop in Ho Chi Minh City in Vietnam in the margins of SOM3. First half day on Ex-Post Evaluation concepts and methodologies imparted by international experts on the subject. Second day on explaining and applying the TLSM, activities that will be instructed by COFEMER staff. The expected result would be a pool of regulations that each APEC member economy will subject to the TLSM and also deliver to the Project Overseer (PO) to conform the Previous Study Cases Report.

2)  One Videoconference: A 1-hour videoconference to share results and comments on the TLSM applied to the pool of regulations and in which every APEC member economy will compromise a date to send its Final Study Cases Report to the PO. 

3)  One Tool of GRPs: The TLSM, as a qualitative and iterative assessment, due the fact that is strongly based on the Ex-Ante and Ex-Post RIAs and also sensitive to the iterative and constant process that Regulatory Reform implies. 

4) Three Electronic Publications:

a) The Methodology Document (TLSM) and its Consulting Guide.

b) A Preliminary Study Cases Report; that is, the list of regulations that APEC member economies will subject to the TLSM.

c) A Final Study Cases Report; that is, the compendium of regulations that each member submitted to TLSM and their results. 

5)  One Summary Report:  An electronic report of the workshop. It will contain: (i) the materials/presentations and Curriculum Vitae of speakers, (ii) the contact information of participants, (iii) the results achieved and lastly, (iv) any recommendation or other relevant information. 

6)  A Completion Report: A summary of all the activities and outputs of the project, including the recommendations for future work on APEC region. 

The materials of (4) to (6) will be e-mailed to participants and will be made available at the APEC website. 

Outcomes: Under the TLSM, and as an impact of the workshop, APEC Economies will be able to generate: 

1) A sufficient oversight of whether the regulations are delivering the intended impacts, which means that regulations would be assessed from real costs and benefits. Indeed, TLSM will present real data —and not only merely estimations— to sustain that regulation is undeniably both effective and efficient.

2) A systematic feedback on the robustness of the assumptions used in the Ex-Ante RIA, which allows regulators to make adjustments, if necessary, to current regulation.

3)  A diagnostic to identify and seize improvements proactively on public policies, instead of majorly react to external reviews and appraisals. In accordance with the green lights obtained, the RIA would be graded as outstanding, satisfactory or unsatisfactory and the given a recommendation either to maintain, improve or cancel regulation. 

The previous implies, in the medium run, that APEC Economies will already have: 

1) Constructed (or secured the existence of) proper parameters which measure the achievement of its goals and impacts, parallel to write the blue print of regulation.

2) Collected data and information just after regulation has been implemented.

3) Analyzed and evaluated evidence through the most suitable methodology.

4) Provided sufficient resources to permanently monitor the regulation. 

In the long run is intended that the TLSM will be applied in all and every APEC Economies, as long as the use of the Ex-Post RIA stands as a common reality throughout the region. 

Beneficiaries: The direct beneficiaries would be the attendants to the workshop, collectively referred as “stakeholders on regulations”, such as: (1) regulatory improvement officials from agencies, ministries or institutions in charge of the domestic regulatory reform policy elaboration and implementation, (2) experts in regulatory policy, (3) personnel of regulatory agencies, ministries or institutions in charge of the domestic regulatory reform policy elaboration and implementation, (4) policy makers (5) oversight bodies’ representatives, (6) public and private public organizations of APEC member economies and (7) academia . That is, the incumbents of regulation. In an immediate way, they would be replicating the methodology in their domestic regulation. The aforementioned participants are expected to come from Peru (Ministry of Economy and Finance), Chile (Ministry of Finance / Ministry of Foreign Affairs), Malaysia (Ministry of International Trade and Industry), Vietnam (Ministry of Planning and Investment), Indonesia (Ministry of Law and Human Rights), Philippines (National Economic and Development Authority), PNG (Independent Consumer & Competition Commission), PRC (National Development and Reform Commission), Thailand (Office of the National Economic and Social Development Board), Russia (Ministry of Economic Development). 

Furthermore, the TLSM will provide, to regulatory officials and public servants, a simple and systematic qualifying tool to support any recommendation on Regulatory Reform through the analysis of the real impacts of current regulation. In other words, in the TLSM they would count with a solid decision making tool to sustain any change on public policy and thus to control and follow up the whole RGC, through monitoring, evaluation and adjustment. 

APEC member economies are expected to encourage their direct beneficiaries to attend as participants and speakers at the workshop. Finally, it is a must that the aforementioned stakeholders have interest and knowledge on implementing GRPs.

Dissemination

1)   The number, form and content of any publications: The results of the workshop will be published electronically at the APEC website. The electronic publications will include: (1) the Methodology Document (TLSM) and its Consulting Guide, (2) the Preliminary and Final Study Cases Reports, (3) the Summary Report and (4) the Completion Report. This information will be accessible to the public following the work plan to ensure that only updated information is reflected therein. 

2)   The target audience: The target audience includes government agencies, academia, multilateral organizations and non-government organizations. 

3)   Dissemination plan: Member economies are expected to disseminate the outputs of the workshop with their respective agencies and business communities through their websites. All organizations, academia and other participants involved in the workshop are also expected to share information on the workshop and its outcomes at their respective economies through fora, roundtable discussions and dialogues (these as additional channels). However, is paramount to state that electronic/digital reports should be published on APEC website first, in attendance of the Intellectual Property Policy, and thereafter disseminated through the referred channels. 

The participants will be requested to provide feedback on how they have disseminated the information in their respective economies whether these were circulated through e-mail or published through the participants’ websites or bulletins. Also, this communication will serve as a follow up to support the TLSM implementation and to solve any doubt they will have on the process. This follow-up communication will be permanently hold and circulated a month after the workshop.

Gender

It is important to highlight that the workshop invitations will point out and seek to have at least a 40% ratio among female and male delegates, speakers and participants. Therefore: 

1)  To ensure that there will be a significant number of women participating in the workshop, economies will be requested to propose and identify women participants.

2) The Completion Report will provide information on the participation of women in the workshop as presenters and participants.

Work Plan

Workshop planning (May 2017 – July 2017)

-  Definition of program, schedule and expected date.

-  Proposal of experts, speakers and participants.

-  Invitation of experts, speakers and participants (the invitation will include a brief background and insight on the direct benefits of using the TLSM, with the purpose of fostering participation and understanding of the TLSM applicability).

-  Experts, speakers and participants confirmation

-  Set final program.

-  Workshop Questionnaire design.

-  Preparation of workshop materials. Expected outputs are (a) program, (b) expected date, (c) list of speakers and experts, (d) list of participants, (e) invitation, (f) Methodology Document and its Consulting Guide, (g) and questionnaire. 

Workshop (August 2017): A one and a half day workshop in Ho Chi Minh City Vietnam in the margins of SOM3. First half day on Ex-Post Evaluation concepts and methodologies imparted by international experts on the subject. Second day on explaining and applying the TLSM, activities that will be instructed by COFEMER staff. The expected result would be a pool of regulations that each APEC member economy will subject to the TLSM and also deliver to the PO to conform the Previous Study Cases Report.

Summary Report, survey and Preliminary Study Cases Report circulation (two months after the workshop)

-  Summary Report delivery to economies.

-  Survey design on TLSM implementation and high level support.

-  Survey delivery to economies.

-  Approval or adjustment of the Preliminary Study Cases Report from each member. 

Videoconference (March 2018 – April 2018): A 1-hour videoconference to share results and comments on the TLSM applied to the pool of regulations and in which every APEC member economy will compromise a date to send its Final Study Cases Report to the PO. 

Completion Report and Final Study Cases Report circulation (April 2018 – September 2018)

- PO will deliver, to all APEC member economies, the compendium of regulations that each member submitted to TLSM and their results; along with the survey and questionnaire outcomes.

-  Completion Report would be delivered to APEC Secretariat. 

A monthly follow-up communication on this regard will be circulated, by email, after the workshop.

Risks

Risks

Risk Management

1.  Concurrence on the agenda and list of speakers may not be achieved.

1. The project overseer will coordinate closely with Economic Committee members and relevant organizations.

2. Participants sent by the member economies do not have background on GRPs elements and their implementation (government representatives).

2. To ensure that this will be communicated to member economies, information on the criteria for selection will be attached.

3. Delay caused by visa application.

3. Adequate visa application time will be provided thru early release of invitations.

4. Delay caused by completion of reports/publications.

4. Adequate scheduling to deal with inherent complexity and difficulties for elaborating reports and publications.

5. Low acceptability level of participants on the use of the methodology.

5. A properly and clearly explanation of the benefits of using the methodology, along with the correct selection of speakers and experts.

Monitoring and Evaluation

1)   Workshop

a) Stakeholder feedback will be gathered through a workshop evaluation questionnaire which will cover assessment on objective, content, speakers’ effectiveness, knowledge achieved and logistical preparations.

b) On the information dissemination, participants will be requested to provide feedback on this regard.

c) The profiles of the participants such as how many have GRP background will also be gathered.

d) The project will seek to ensure that presenters/speakers and participants have a significant female representation which is targeted at least at forty percent.

e) The project will also be evaluated based on the economies’ participation in the workshop (through the questionnaire). 

2)   Long run impact

a) A survey will be conducted among those who participated in the workshop (a year after), to monitor the adoption/implementation of the TLSM, as well as the capacity building programs.

b) An action plan, based on the strengths and competencies of member economies, will be developed and will be further enhanced in future workshops and conferences related to GRPs. 

Potential indicators to measure outcomes, impacts and success of the project through the survey and the action plan are: 

a) Number of Ex-Post evaluations carried out / Number of expected Ex-Post evaluations. Expect indicator value: 30%.

b) Number of regulations evaluated under the TLSM / Number of regulations expected to be evaluated under the TLSM. Expect indicator value: 50%. 

Also, the monitoring of workshop will consist in applying a questionnaire to participants and the aforementioned survey. The first will evaluate their learning and comprehension of the methodology, while the second would assess the usefulness of the methodology and satisfaction derived of the trainers’ expertise. 

Finally, is expected that nine developing economies attend the workshop, namely Chile; China; Indonesia; Malaysia; Mexico; Papua New Guinea; Peru; Thailand and Viet Nam.

Linkages

1)   Engagements:

- The project seeks to promote cross fora collaboration with sub-committees, experts' groups, working groups and task forces of the EC. The activities which will be carried out in this project are aligned with Mexico’s IAP and so the proposal doesn´t duplicate the work related with other regulatory reform projects. The project will seek to collaborate with the APEC Committee on Trade and Investment (CTI). Specifically, the EC will share, as a contribution to the CTI, the workshop results and the TLSM, with the aim that this effort serves as guide and reference for future work on facilitation of trade and investment due to good regulation performance.

- The workshop is linked to the international regulatory impact assessment work carried out by the Organization for Economic Cooperation and Development (OECD). The OCDE is implementing principles and best practices on regulatory policy. Specifically, Principle 5 of the 2012 Recommendation of the Council on Regulatory Policy and Governance, stating that economies should “conduct systematic programme reviews of the stock of significant regulation against clearly defined policy goals, including consideration of costs and benefits, to ensure that regulations remain up to date, cost-justified, cost-effective and consistent and delivers the intended policy objectives .…”

-  The project builds on 10th Conference on Good Regulatory Practices first objective: “To expand the application of GRPs as a tool to reduce barriers to trade, investment and economic growth”, due the fact that the TLSM would be an appropriate tool to assess the performance of regulation such as standards, because “When standards-related measures are outdated, overly burdensome, or otherwise inappropriate, they can reduce competition, stifle innovation, and create unnecessary technical barriers to trade”.

2)   Previous work: During 2013, Mexico implemented the Project SEC0212A financed by APEC, which had the objective to develop a Guide to evaluate the impact of regulation with the experiences of APEC economies. The “Regulatory Impact Evaluation Guide, Vol. I. Methods and Methodologies, and Vol. II. Case Studies” was issued as a deliverable. This new project will be a continuation of the SEC0212A, and Mexico will deepen on methodologies of Ex-Post assessment.

3)   APEC’s comparative advantage: Given the high priority accorded by the APEC Leadership to the work on GRPs and the APEC continued commitment to strengthen GRPs implementation in the region as exemplified by the regular holding of conferences for GRPs.

Sustainability

1) To further the instruction made by APEC Leaders in 2015, in order to promote structural reform for being critical to improve economic efficiency and increase productivity (through an enhanced regulatory environment), the survey will be paramount to measure the grade of the TLSM application, along with the commitment of high level officials for facilitating the efforts to implement GRPs in their economies.

2)  The outputs of the project would be shared at EC related meetings and the 11th Conference on GRP in 2018.

3) In Mexico, on 28 November 2012, the “Agreement by which the Ex-Post Regulatory Impact Assessment is implemented” was issued, with the objective to enhance the quality level of regulatory inventory. Nevertheless, and despite the Agreement enables COFEMER to recommend the modification or cancellation of regulations, the TLSM fits as the quality control tool of the Agreement. In short, the TLSM is already part of COFEMER’s work plan.

Project Overseers

Mr. Marcos Santiago Avalos Bracho
Regulatory Impact Assessments General Coordinator
Federal Commission of Regulatory Improvement
E mail: marcos.avalos@cofemer.gob.mx

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

 

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

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Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

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PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

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PMU Field 3

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