The Regulatory Impact Analysis (RIA) is defined as a process delivering objective evidences to policy makers through systematic and positive analysis of the proposed regulatory alternatives. The RIA since 1970 has an underlying background that the peo...
The Regulatory Impact Analysis (RIA) is defined as a process delivering objective evidences to policy makers through systematic and positive analysis of the proposed regulatory alternatives. The RIA since 1970 has an underlying background that the people have started to reflect on excessive government intervention deepened from the beginning of the 20th century considered as a century of administration and the following ineffectively accumulated. Today, central governments of 14 countries joining in the OECD adopt the system of the RIAs as well as other members have been preparing to practice the system. Regarding peculiar features of the countries`s policy condition, there has been a variety of adopting and applying the system, yet the RIA becomes a basis for improving the qualitative policy making.
The Korean government recently accepted the new Basic Law on Regulation requiring central agencies to perform regulatory impact analyses (RIAs), beginning in June, 1998. Whenever it involves a new piece of regulation to be introduced must submit an RIA to the Regulation Reform Commission co-chaired by the Prime Minister. Because conducting RIAs includes, among other things, identification and comparison of the costs and benefits of the regulation under consideration, the development of general guidelines for the preparation of cost-benefit analysis (CBA) is an urgent task. This paper aims at introducing rind applying some significant theories, concepts and empirical results (mainly from advanced countries) regarding the use of CBA. The hope is that this article will contribute to much-needed discussion in academic and policy circles regarding several controversial and complicated issues involving CBA.
This paper contains 5 chapters including an introductory Chapter 1. Chapter 2 carries on the meaning and current condition of the RIAs and guidelines for a successful regulatory impact analysis. Especially, regarding the current condition of the Korean government, it is stressed that success or failure of the RIA system in Korea depends upon the Preliminary Analysis. Practical guidelines have been described in Chapter 3. By suggesting the practical feature of the CBA in the unified frame of the RIA Guidelines, a compatible reality of the RIAs becomes realized. Chapter 4 gives experts a chance to synthesize issues of the CBA; meaning, evaluation and estimation, and several useful methods of the CBA have been introduced In Chapter 5, there are case studies of the representative actual RIA sheets from the United States as well as Korea; all the cases include brief syntheses and comments.