Developing countries experience and outlook: Getting the framework right

Developing and transitional economies have adopted and implemented “RPI-X” or “incentive based regulation” over the past few decades, building on the reforms in the UK and elsewhere. However, for incentive based regulation to deliver the desired outcomes it needs to be implemented in a comprehensive manner (both in terms of substance and process), or at least in a considered way, with any deviations from standard approaches understood in terms of the potentially perverse impacts or incentives that might arise.