keynote speaker scott jacobs presentation at the mercatus regulatory conference

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Challenges in regulatory reform:

Can the U.S. learn from other countries?

Scott Jacobs

Managing Director

The Future of Regulations: Moving From Presumption to Proof Tuesday, November 13, 2012

Mercatus Center at George Mason University



When governments lose control of regulation, the rule of law erodes “We built a world of bureaucracy and lust for power. A world of corruption, of small and big privileges and interests for anyone who could take advantage of other people.“

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-- Greek Prime Minister George Papandreou, 11 September 2010, announcing a deregulation program



Price controls



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The global spread of RIA

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Num

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RIA

OECD Countries Non-OECD Countries

1970 1980 1990 2000 2010

United States



European Commission Impact Assessment on periodic technical inspections of motor vehicles (2011)

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Cost (€mn) Benefit (€ mn) Mone/zed benefit/cost ra/o

Addi/onal jobs (compared to

previous op/on)

Op#on 1 0.28 184 656:1 0

Op#on 2a 459.5 1622 3.53:1 1,450

Op#on 2b 3347 5623 1.68:1 13,450

Op#on 2c 9227 7027 0.76:1 46,260

Op#on 3a 460 1806 3.93:1 1,450

Op#on 3b 3347 5807 1.73:1 13,450

Op#on 3c 9227 7211 0.78:1 46,260

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What can the US learn? Four reforms from other countries

n  Inter-institutional cooperation on regulatory reform

n  Cleaning up old regulations - effective regulatory review

n  A national reform program in a federal system n  Managing cumulative regulatory burdens

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Cleaning up the regulatory stock: Various tools n  Ad hoc self-reviews by regulators: no real gains anywhere n  Regulatory Guillotine reviews or other approaches to using

independent expert bodies to review rules – see South Korea n  Replace old costs with new costs: Remove one regulation for each

new one that is proposed -- UK – one in, one out n  Create a truly independent scorer for regulatory costs and benefits,

modeled on the Congressional Budget Office n  Creating a full-time advocate for regulatory rollback -- Kansas

created an “Office of the Repealer” that aggregates complaints and suggests repeals to the governor and legislature. No repeals yet, though.

n  Automatic “sunsets” of laws – little success in other countries

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Economic Impacts of Regulatory Guillotine reform in South Korea

Korean numbers are projections. Source: Byung Ki Ha(1999), The Economic Effects of Korea’s Regulatory Reform (in Korean), KIET.

South Korea % business regulations deleted: -49% New Jobs created: +1,066,200 Business cost savings: +4.4% of GDP Increased FDI: $36.5 billion in new FDI

keynote speaker scott jacobs presentation at the mercatus regulatory conference

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