Industries and businesses are becoming increasingly digital, and the COVID-19 pandemic has further accelerated this trend. Regulators around the world are also experimenting with data-driven tools to apply and enforce rules in a more agile and targeted way. This report maps out several efforts undertaken jointly by the OECD and Italian regulators to develop and use artificial intelligence and machine learning tools in regulatory inspections and enforcement. It provides unique insights into the background processes and structures required for digital tools to perform predictive modelling, risk analysis and classification. It also highlights the challenges such tools bring, both in specific regulatory areas and to the broader goals of regulatory systems.
The first OECD enforcement and inspections review evaluates the policies and legal framework of the Environmental Evaluation and Enforcement Agency of Peru, as well as its practices and the resources employed in enforcement and inspections activities. It also offers policy options to improve performance. The OECD Regulatory Enforcement and Inspections Toolkit was used as a benchmark for the evaluation and the review follows the structure of the Toolkit's 12 criteria.
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How regulations are implemented and enforced, and how compliance is ensured and promoted, are critical determinants of whether a regulatory system is working as intended. Inspections are one of the most important ways to enforce regulations and to ensure regulatory compliance. Based on the 2014 OECD Best Practice Principles for Regulatory Enforcement and Inspection, this Toolkit offers government officials, regulators, stakeholders and experts a simple tool for assessing the inspection and enforcement system in a given jurisdiction, institution or structure. Its checklist of 12 criteria can be used to identify strengths and weaknesses, gauge actual performance, and pinpoint areas for improvement.
This report seeks to construct an overarching framework to support initiatives on improving regulatory enforcement through inspections, making them more effective, efficient, less burdensome for those who are inspected and at the same time less resource-demanding for governments. The principles address the design of the policies, institutions and tools to promote effective compliance – and the process of reforming inspection services to achieve results.
The report complements the 2012 Recommendation of the Council on Regulatory Policy and Governance and is intended to assist countries in reforming inspections and developing cross-cutting policies on regulatory enforcement. The principles have an informal non-binding status of a guidance approved at the Regulatory Policy Committee level.
For further information, please contact Daniel Trnka, Regulatory Policy Division, OECD.