Regulatory Governance in Developing Countries

The purpose of this report is to introduce and present key components of the regulatory governance agenda, and to discuss its relevance for developing countries. The paper identifies failings and knowledge gaps relevant to the implementation of regulatory governance initiatives, and it discusses how lessons already learned can guide reformers and donor organizations in their continued efforts to promote sustainable growth and private sector development through better and more efficient regulation. Following the executive summary and this introduction, the paper is divided into the following sections: regulatory governance - what is it? This section defines and introduces basic concepts of regulatory governance. Regulation and economic growth - in this section, the links between regulatory governance reforms and economic growth are clarified. Major building blocks of a regulatory governance system - this section explores the main building blocks of a regulatory governance system and highlights elements of relevance for developing countries. Application of regulatory governance tools and approaches in developing countries. This section summarizes the pros and cons for applying regulatory governance tools in developing countries, and summarizes the recorded results and experiences with regulatory governance tools in three developing countries. Looking ahead: should donors and governments invest more in regulatory governance? The paper concludes with the lessons learned and not yet learned, and challenges ahead for the regulatory governance agenda in developing countries