11. Regulatory compliance and enforcement

Abstract

This section provides a brief overview of the issue of regulatory compliance and enforcement in the Palestinian Authority as an integral part of regulatory policy.

    

Though beyond the scope of Part II, the issue of regulatory compliance and enforcement is an integral part of regulatory policy and should be mentioned briefly.

As elaborated earlier in Part II, the PA law is a complex blend of regulations issued under several political regimes, dating as far back as the Ottoman Empire, and has been amended several times by different regimes. This “fragmentation of the laws”, paired with low public confidence in the judiciary, poses strong challenges for implementing and enforcing laws. Regulatory compliance and enforcement is a significant challenge in the PA. The “freezing” of existing legislation happens on a frequent basis due to compliance issues. More generally, there is a substantial number of laws and regulations that is reportedly simply not being enforced.

This lack of regulatory compliance and enforcement creates significant issues for governance and the rule of law in the PA and should be subject to a more in-depth review. Box 11.1 provides an overview of best practices countries can employ to promote effective and efficient regulatory enforcement.

Box 11.1. OECD Best Practice Principles for Regulatory Policy: Regulatory Enforcement and Inspections

1. 1. Evidence-based enforcement. Regulatory enforcement and inspections should be evidence-based and measurement-based: deciding what to inspect and how should be grounded on data and evidence, and results should be evaluated regularly.

2. 2. Selectivity. Promoting compliance and enforcing rules should be left to market forces, private sector and civil society actions wherever possible: inspections and enforcement cannot be everywhere and address everything, and there are many other ways to achieve regulations’ objectives.

3. 3. Risk focus and proportionality. Enforcement needs to be risk-based and proportionate: the frequency of inspections and the resources employed should be proportional to the level of risk and enforcement actions should be aiming at reducing the actual risk posed by infractions.

4. 4. Responsive regulation. Enforcement should be based on “responsive regulation” principles: inspection enforcement actions should be modulated depending on the profile and behaviour of specific businesses.

5. 5. Long term vision. Governments should adopt policies on regulatory enforcement and inspections: clear objectives should be set and institutional mechanisms set up with clear objectives and a long-term road-map.

6. 6. Co-ordination and consolidation. Inspection functions should be co-ordinated and, where needed, consolidated: less duplication and overlaps will ensure better use of public resources, minimise burden on regulated subjects, and maximise effectiveness.

7. 7. Transparent governance. Governance structures and human resources policies for regulatory enforcement should support transparency, professionalism, and results oriented management. Execution of regulatory enforcement should be independent from political influence, and compliance promotion efforts should be rewarded.

8. 8. Information integration. Information and communication technologies should be used to maximise risk-focus, co-ordination and information-sharing – as well as optimal use of resources.

9. 9. Clear and fair process. Governments should ensure clarity of rules and process for enforcement and inspections: coherent legislation to organise inspections and enforcement needs to be adopted and published, and clearly articulate rights and obligations of officials and of businesses.

10. 10. Compliance promotion. Transparency and compliance should be promoted through the use of appropriate instruments such as guidance, toolkits and checklists.

11. 11. Professionalism. Inspectors should be trained and managed to ensure professionalism, integrity, consistency and transparency: this requires substantial training focusing not only on technical but also on generic inspection skills, and official guidelines for inspectors to help ensure consistency and fairness.

Source: (OECD, 2014[31])

Reference

[1] OECD (2014), OECD Best Practice Principles for Regulatory Enforcement and Inspections, https://doi.org/10.1787/9789264208117-en. (accessed on 25 October 2021).