In October 2001, the Stability Pact and the OECD launched the Regulatory Governance Initiative (RGI) to strengthen the institutional, knowledge and process capacities for developing and implementing more efficient and effective regulation, supportive of sound and competitive markets. The RGI is one of the policy implementation initiatives under the Investment Compact (the South East Europe Compact for Reform, Investment, Integrity and Growth) of the Stability Pact.

This report of the Regulatory Governance Initiative provides an assessment on the progress of regulatory governance reforms in South East Europe (SEE), and the remaining reform challenges. It includes the Governance Action Plans developed by the SEE countries. Short-term reform priorities identified by the countries provide the basis for the Agenda for Regional Action, an overview of main governance reform trends in the SEE region and recommendations for the successful implementation of reforms. The report responds to the decision, taken by the Ministers from South East Europe (SEE) at the meeting in Vienna in July 2003, to place major emphasis on reviewing progress in the area of governance at their 2004 Ministerial meeting. It aims to inform policy-makers, donors, investors and the international community of progress in regulatory governance reforms in South East Europe. Practitioners in the region can draw on this report as a guide for their work in the future.