Ex-ante Policy Impact Assessment in Latvia

 

Legal background

 
The general approach to impact assessment in policy documents is based on the Policy Planning Guidelines of 2001.These Guidelines were implemented through the Rules of Procedure of the Cabinet of Ministers in 2002.
The Policy Planning Guidelines aimed to introduce basic principles of policy making; defined the types of policy documents, main points of their contents (minimum requirements), and sequence of preparation; set out the procedure for harmonization and approval of policy documents in the Cabinet of Ministers; provided ideas for linking policy making with the budget preparation process and reporting on the acquired results and introduced the idea of impact assessment, especially in the system of annotations for draft normative acts.
 
According to the Procedure for Filling in Annotations of Draft Regulations – adopted by the Council of Ministers in 2001 – the annotations are the explanatory materials that must accompany the draft regulation sent to the Cabinet of Ministers and to the parliament.  These annotations include the assessment of the economic and social impacts of the draft regulation considered, as well as the impacts it may have on the state budget.
 
The annotation sets out:
 
   Rationale for introducing the legal act: the current situation and a description of the problem to be solved
   Current legal regulations and necessary amendments
   Reference to Government Declaration or a policy document authorising or requiring proposal
   Purpose of proposal and brief summary of it
   A description of the main socio‑economic impact
·              Macro-economic
·              Business environment
·              Social impact
·              Environment
   Impact on state and local government budget (Medium‑term financial impact assessment)
   Impact on legal system (other legal acts to be prepared or changed)
   Impact on international obligations (reference to the EU legal instruments and international agreements)
   Consultation undertaken during preparation (communication with NGO`s relevant social partners)
   Institutional arrangements for the implementation of the draft regulation (administrative, communication, protection of rights of individuals)
A properly completed annotation should show an analysis of the impact on the development of society and national economy, indicating possible changes in macroeconomic environment, business environment and simplification of administrative procedures, social and environmental situation and an analysis of the impact of the proposal on the observation of human rights and on opportunities for men and women.
More specifically, the impact must be assessed on a range of factors, including:
   The volume of the production of goods and services
   The employment rate
   The unemployment rate
   Prices
   Volume of exports
   Competition.
(Source: State Chancellery, Latvia)
 

Institutional background

 
The State Chancellery plays crucial role in reviewing draft laws to ensure their conformity with strategic plans, political priorities and legal technicalities. This is the body which is responsible for enforcing procedures and rules regarding policy-making. Impact assessments contained in the annotations are also reviewed in the State Chancellery and in line ministries, according to their respective competencies. Impact assessments that do not meet the required standards are sent back to the policy or regulation proposing ministry.
 
The Ministry of Justice plays special role in reviewing the draft regulations. It ensures that the draft law is consistent with the Constitution, general principles of law and with existing regulations.
 
Key draft policy documents and regulations that are being developed by a special working group are circulated to ministries before they are submitted to the weekly meeting of the State Secretaries. The summary of the ministries` comments then accompanies the draft to the State Secretaries meeting.
 
Inter-ministerial consultations are also organized by the electronic circulation of documents on the government web-page. After announcing the draft, it is also available for public consultation.
 
Interesting feature of the Latvian system is that coalition Governments have a tradition to set up the Coalition Council which represents in equal numbers of members the coalition parties. This council has no official status in the decision-making process; however it enables the decision-makers to discuss and resolve politically sensitive issues. The council is not open to public scrutiny, and it operates outside the official channels.
 

Relevant areas of IA

 
Ø      socio-economic impacts
Ø      macro-economic impacts
Ø      impacts on the business environment
Ø      social impacts of the proposed legislation
Ø      impacts on the environment
Ø      impacts on the state budget and budgets of local government
Ø      impacts of draft regulations on the legal system
Ø      impacts on international obligations
 

Related activities

 
Content to be uploaded
 

Existing guidelines

 
A Manual on Impact Assessment Methods has been prepared by the State Chancellery in 2005.
 

Documents, links

 
Content to be uploaded