Improved Business Regulation (AL0063)

COMPONENT III: OPEN GOVERNANCE FOR “BETTER REGULATION”
The policy objective of this activity is the development of a public administration that provides
high quality services to citizens and businesses in a transparent, effective and efficient manner,
through the use of modern technologies and innovative services, and complies with European
integration requirements through impartial, professional and accountable civil servants, part of
the efficient structures.
A transparent policy-making, inclusive, policy-making system that ensures alignment with the
acquis.
COMPONENT III: OPEN GOVERNANCE FOR “BETTER REGULATION”
Leading institution Department for Development and Good Governance, PMO
Other participants Government Ministry of Finance and Economy, The National Agency of
Information Society, Albanian School of Public Administration, Line
Ministries, Ministry for Europe and Foreign Affairs
Civil society
Private Sector
Partners for Change and Development in Albania, Institute for
Research and Development Alternatives, Institute for Co-operation
and Development, Foundation "Open Society for Albania", Institute
for Promotion of Social Economic Development
Status quo or problem / issue being
addressed
Policy and strategy development is based on the Integrated Planning System
(SPI). IPS is the national decision-making key system for defining strategic
directions and resource allocation (the World Bank refers to the Albanian SPI
as one of the best practices in the region). The IPS's main goal is to draft a
strategic, integrated, structural and accountable plan for Albania, including
harmonizing the adaptation of existing planning and monitoring systems within
the new system and reorganizing structures under the new system. IPS aims to
avoid drafting ad hoc policies and strategies, avoid overlapping, and ensure
compliance with financial planning processes.
The IPS institutional framework is further consolidated with the restructuring
of the Prime Minister's Institution and the strengthening of the monitoring and
strategic planning capacities in this institution through the establishment of the
Development and Good Governance Policy Unit at the Department of
Development and Good Governance and the Regulatory Acts Programming
Unit at the Regulatory and Compliance Department.
Information systems are being set up for different components of SPI. Since
2007, the Medium Term Budgeting System (MTBP) is functioning for all line
ministries, while the Government Financial Information System (AFMIS), the
Foreign Assistance Management Information System (EAMIS) and the
Information System for the Integrated Planning System (IPSIS). Regarding the
legislative process and the quality of the legislation, there are efforts to improve
the analysis, plan the measures and their fulfillment. In general, the process of
24
drafting the legislation is accompanied by insufficient transparency and lack of
stakeholder consultation. In 2014, the Law on Public Consultation of Political
and Legislative Acts was adopted, as well as a new law on the right of
information, for which the necessary measures for full and qualitative
implementation should be taken. In few cases there have been genuine ex ante
and ex post assessments of the consequences of legislation.
Challenges:
Consolidating the framework of the Integrated Planning System remains a
challenge. Moreover, it is necessary to consolidate the capacity of the new
structures related to the functioning as a whole of the entire system
mechanisms. Increasing system efficiency needs to be addressed through its
consolidation.
Establishing information systems for IPS components requires a clear
implementation of business core processes related to policy, budget, and
investment planning. On the other hand, the capacity building of the institutions
involved is necessary
In terms of improving the regulatory system:
➢ Policies aim at strengthening the system of integrated planning, policy
and legislation monitoring, reporting and evaluation, which transforms
government priorities into concrete actions; increasing the
transparency of government's strategic documents and monitoring
them; enhancing the capacity of ministries to develop good policies
and legislation in line with the acquis.
Policies in this sector will also aim at increasing efficiency in strategic planning
and monitoring the performance of implemented policies; establishment of
information systems for public policy and public finance planning systems;
capacity building and improvement of horizontal coordination and cooperation
between ministries, as well as within line ministries; as well as the
establishment of mechanisms for controlling the effectiveness of legislation.
Main objective / Purpose of the
policy
The policy objective of this activity is the development of a public
administration that provides high quality services to citizens and
businesses in a transparent, effective and efficient manner, through the use
of modern technologies and innovative services, and complies with
European integration requirements through impartial, professional and
accountable civil servants, part of the efficient structures.
A transparent policy-making, inclusive, policy-making system that
ensures alignment with the acquis
OGP challenge affected by
engagement
Improving
public
services
More
efficient
manageme
nt of
public
resources
Increase
public
integrity
Increasing
corporate
accountabil
ity
Creating a safer
community
X X X X
It is important to improve: Transparen
cy
Responsib
ility
Citizen Participation Technology and
Innovation
X X X X
25
Measurable and
verifiable
achievements to
accomplish
engagement
Result
Indicators
Output
Indicators
Responsi
ble
Institutio
n
New or
continued
engagement
from the
2016-2018
action plan
Start date End date
3.1 Drafting a
methodology for the
preparation of
strategic documents
(strategies, programs,
action plans, policy
documents, etc.).
IPSIS goes
live in 2019 as
a functional
system
Methodolo
gy
prepared
DDGG/I
PSIS
New
engagement
2018 2019
3.2 Drafting a legal
package for the
functionality of the
IPSIS system
A complete
regulatory
package
drafted and
approved
(1 MCD
for IPSIS
as an eregister; 1
MCD for
IPSIS
functionalit
y; 2 PM
Orders for
IPSIS
modules in
connection
with the
preparation
of
strategies,
action
plans,
monitoring
reports,
programs;
IPS
Calendar;
Amendmen
ts to the
MTBP
Guidelines)
DDGG/I
PSIS
New
engagement
2018 2019
3.3 Improve the
capacity of the
Department of
Development and
Good Governance &
line ministries in
Nr. of
policy staff
trained in
line
ministries
DDGG/I
PSIS
New
engagement
2018 2019
26
terms of monitoring
policies / strategies /
action plans /
development
programs, in
accordance with
IPSIS & AFMIS
methodologies 3.4 Review of the
Legal Basis and
Regulatory
Framework for the
Functioning of
IPMGs and / or
SWGs to Address
Challenges in
Government
Structures and
Change of Functions
No. of high
level
meetings for
each IPMG
in the pilot
sectors and
the
establishmen
t of new
IPMGs
Revised
documents
DDGG New
engagement
2018 2018
3.5 Preparation of
standard tools (tool
kit) for the
functioning of IPMG
for Good Governance
& Operational
Guidance / Progress
IPMG (reviewing the
regulatory framework
for the functioning of
IPMG for Good
Governance)
Prepared
Toolkit
DDGG New
engagement
201
8 2018
3.6 The systematic
functioning of the
Policy Group's Policy
Group and the
establishment of a
policy
-making
network with policy
units in line
ministries
Nr. of G.T
meetings
on Policy
Making
No. Of
meetings
for the LM
policy
-
making
network
DDGG New
engagement
2018 2018
3.7 Preparation of
Operational
Guidelines for line
ministries for
carrying out the
public consultation
process and
functioning of the
Operational
Guide
Designed
DDGG 2018 2018
27
public consultation of
e-register.
3.8 Training /
Capacity Building for
Responsible Staff in
Line Ministries for
the Use of Public
Consultation ePlatform
No. of
trained
staff
NAIS 2018 2018
3.9 Regular
monitoring of the
implementation of the
public consultation
process
The drafted
monitoring
reports (the
first report
prepared in
ThM I
2019)
DDGG New
engagement
2018 2020
3.10 Establish rules
that make the
implementation of the
Impact Assessment
process mandatory
Amending
MCD 584
dated
28.08.2003
, adoption
on 08.2003
with
amendment
s approved
RCD New
engagement
2018 2018
3.11 Strengthening
capacities, through
various employee
training (RIA
Network) in line
ministries and the
Prime Minister’s
Office, in order to
improve the process
of regulatory impact
assessment
Number of
trained
employees
ASPA New
engagement
2018 2019
3.12 Improve the
planning process of
drafting legal acts by
defining the general
terms and conditions
of the PPAP drafting
process
% of legal acts
drafted and
approved in
accordance
with the
General
Analytical of
draft acts
New
Design
Procedures
RCD New
engagement
Every
year
Every year

3. Open Governance for “Better Regulation”

Language as it appears in the commitment: [25]

Main objective: The policy objective of this activity is the development of a public administration that provides high quality services to citizens and businesses in a transparent, effective and efficient manner, through the use of modern technologies and innovative services, and complies with European integration requirements through impartial, professional and accountable civil servants, part of the efficient structures. A transparent policy-making, inclusive, policy-making system that

ensures alignment with the acquis

Milestones:

3.1 Drafting a methodology for the preparation of strategic documents (strategies,

      programs, action plans, policy documents, etc.).

3.2 Drafting a legal package for the functionality of the IPSIS system

3.3 Improve the capacity of the Department of Development and Good Governance

      & line ministries in terms of monitoring policies / strategies / action plans /   

      development programs, in accordance with IPSIS & AFMIS methodologies

3.4 Review of the Legal Basis and Regulatory Framework for the Functioning of

      IPMGs and / or SWGs to Address Challenges in Government Structures and

      Change of Functions

3.5 Preparation of standard tools (tool kit) for the functioning of IPMG for Good

      Governance & Operational Guidance / Progress IPMG (reviewing the regulatory

      framework for the functioning of IPMG for Good Governance)

3.6 The systematic functioning of the Policy Group's Policy Group and the

      establishment of a policy-making network with policy units in line ministries

3.7 Preparation of Operational Guidelines for line ministries for carrying out the public

      consultation process and functioning of the public consultation of e-register.

3.8 Training / Capacity Building for Responsible Staff in Line Ministries for the Use of

      Public Consultation e-Platform

3.9 Regular monitoring of the implementation of the public consultation process

3.10 Establish rules that make the implementation of the Impact Assessment process

       mandatory

3.11 Strengthening capacities, through various employee training (RIA Network) in

        line ministries and the Prime Minister’s Office, in order to improve the process of

        regulatory impact assessment

3.12 Improve the planning process of drafting legal acts by defining the general

        terms and conditions of the PPAP drafting process

Start Date: 2018

End Date: 2020

Context and Objectives

This commitment aims to improve Albania’s public administration so that it provides quality services to citizens and businesses in a transparent manner. It also aims to ensure that Albania’s public administration complies with EU integration requirements by ensuring that civil servants are impartial, professional, and accountable.

Currently, the Government of Albania produces various central planning documents and monitoring reports, but not all of them are available publicly, and different standards are used during their preparation. Furthermore, Albania does not have any systematic process for carrying out proper analyses of the impact of new policies and laws. Improvements to the quality of policy making and analysis are important, for example, ensuring that the 2014 Law on Public Notification and Consultation is fully implemented and introducing the Regulatory Impact Assessment (RIA) into all ministries. [26] In June 2017, the Prime Minister approved a methodology for piloting the RIA in selected ministries, but there is no plan to fully institutionalize RIA within the current policy-making system after the pilots. Also, despite the adoption of a new law on public consultation and the creation of an electronic platform in 2016, consultation with external stakeholders on new policies are often not integrated into the overall policy-making process. [27]

This commitment includes activities that aim to improve public consultations, including the public consultation platform http://www.konsultimipublik.gov.al, and is thus relevant to the OGP value of civic participation. Also, the publication of policy and regulatory framework preparation, implementation, and monitoring are relevant to access to information.

If fully implemented, this commitment could help ensure unified standards, approaches and tools when preparing reports and strategic documents and reviewing legal frameworks. It could also strengthen the capacities of the government officials in carrying out public consultations (Milestones 3.1–3.8). Proper public consultation process and publication with regard to policy and regulatory framework preparation, implementation, and monitoring could be ensured through Milestone 3.9, though this milestone does not describe how the monitoring will take place. Implementation of Milestones 3.10–3.12 could ensure the systematic process or methodology for carrying out proper analyses of the impacts of new policies and laws. While better strategic documents could create the basic preconditions for public consultations, their implementation will provide a clearer understanding on their impact on improving the quality of services for citizens and businesses. The lack of detail in the action plan for the activities makes it difficult to assess their potential impact beyond minor.

Next steps

Moving forward, when publishing draft legislation or action plans for public consultations, the government could provide adequate timeframes, establish clear rules, and provide feedback on citizens’ input. The Law on Notifications and Public Consultations could also be amended to cover administrative acts (i.e., sub-legal acts).

[25] For the complete text of this commitment, see: “The Open Government Partnership Fourth Open Government National Action Plan for Albania 2018–2020”, Open Government Partnership, 10 January 2019, https://www.opengovpartnership.org/wp-content/uploads/2019/01/Albania_Action-Plan_2018-2020_EN.pdf.

[26] “The Principles of Public Administration: Albania”, SIGMA, OECD, European Commission, November 2017, http://www.sigmaweb.org/publications/Monitoring-Report-2017-Albania.pdf.

[27] Idem.

3. Open Governance for “Better Regulation”

Complete:

For Milestones 3.1-3.6: The government established integrated policy management groups (IPMGs) aimed at facilitating coordination of sectoral reforms across four priority sectors: public administration, competitiveness, employment and social, and integrated water management. [18] The IRM was unable to find further information about the functioning of these IPMGs, but a 2020 EU report says that their administrative capacity and the involvement of development partners, local governments, and CSOs in IPMG sectoral dialogue needs improving. [19] Government officials received training on methodologies and guidelines in relation to the Integrated Planning System Information System, but administrative capacities could still be improved in this area. [20]

For milestones 3.7-3.9: The self-assessment reports that institutionalization of existing legal mechanisms and guidelines has strengthened the process of public consultation on policy proposals. Drafting of some of these guidelines included consultations with relevant government agencies and international organizations. [21] The government point of contact stated that 72 percent of legal acts went through public consultation during 2019, up from 47 percent in 2018. [22] Government officials received nine ministry-specific trainings on the use of public consultations during 2020. The EU working document reports that citizens’ use of the online portal for public consultations is limited and that quality control on public consultations remains weak and focuses mostly on the process rather than on content. [23]

For milestones 3.10-3.12: According to the self-assessment and information provided by the point of contact, Council of Ministers Decision 197/2018 means that draft primary legislation is now subject to Regulatory Impact Assessments (RIA). [24] RIAs for draft laws are published in the Electronic Register of Notifications and Consultations, which also provides information and results of public consultation on policy proposals. [25] According to the government point of contact, in 2019, institutions had drafted 70 RIAs, of which 40 had been approved by the Council of Ministers. [26] SIGMA notes that, so far, Albania has ensured consistency of analysis across RIAs produced by different ministries, although not all RIAs are published on the public consultation website. [27]