Effectiveness of the regulatory impact assessment in the Canton of Basel-Stadt
The Canton of Basel-Stadt advocates business-friendly solutions regarding enactments. For this purpose, the regulatory impact assessment (RFA) instrument was introduced in 2011 with the aim of creating transparency concerning the economic effects of regulations and thus improving the quality, effectiveness, and efficiency of regulations. The cantonal RFA has now been evaluated based on an initiative by the Grand Council. Here you will find the results of this evaluation
The Canton of Basel-Stadt advocates business-friendly solutions regarding enactments. Therefore, the reduction of the administrative burden on the economy and especially on SMEs was enshrined in law in 2007 within the framework of the Economic Development Act. In addition, the instrument of the regulatory impact assessment (RFA) was introduced. The aim was to make the administration and political bodies aware of the economic effects of enactments, in particular of the financial consequences for companies, to create transparency and thus improve the quality, effectiveness, and efficiency of regulations, and ultimately to further strengthen Basel-Stadt as an economic area.
Around ten years after the introduction of the RFA in the Canton of Basel-Stadt, the research and consulting company Ecoplan was commissioned to conduct an efficacy study of the RFA in the Canton of Basel-Stadt. The aim of this evaluation was to take a closer look at the RFA’s impact channels in the Canton of Basel-Stadt, to identify potential for improvement, and to suggest possible measures. At the same time, benchmarking was carried out with other cantons.
The main results of the evaluation:
- The RFA in the Canton of Basel-Stadt is well designed and should continue to be used as a targeted instrument to estimate the regulatory costs for companies and to help ensure that the burden remains at an acceptable level.
- The instrument is used to make administrative staff aware of the economic effects of a specific ordinance or law. This leads to fundamental considerations concerning the need for an enactment or consider alternative, more business-friendly solutions.
- A direct effect in the sense of an adjustment of a bill after the RFA has been carried out rarely occurs, although this effect depends on a prior examination of the possible economic consequences.
- The analysis has shown that a fundamental revision of the RFA is not necessary. However, the study makes suggestions for a range of improvements.
Detailed results of the study can be found here.