This report discusses some of the major challenges for implementing regulatory reform, from a political perspective. It draws on the experience and evidence from OECD countries when building the case through results and developing strategies for advocacy. This reflects the discussions held at the meeting of the OECD Group on Regulatory Policy in December 2007. Core issues concern how to create common consensus to support reform and which actors and stakeholders to integrate in achieving reforms. The issues of sequencing and timing are extremely relevant. Citizens and the public also need to understand the economic benefits of liberalisation and cutting red tape through regulatory reform.

Specific chapters analyse the role of advocacy bodies for regulatory reform, as well as competition policy, discussing their incentives and how they operate in their cultural, political and administrative environment. They should perform as powerful drivers and engines for reform, integrating the views of business and citizens in the policy process. An example is presented in the form of a case study assessing the political viability of centralised regulatory oversight as an institutional strategy based on the United States’ experience. Concerning competition policy advocacy, the report examines the balance between institutional independence and objectivity that are necessary for enforcement. Finally, the report also discusses how to interlink market-openness policies in a friendly reform environment, drawing lessons from trade and structural adjustments. It underlines the role of international negotiations as a means to harness political support, and strategies for managing and sustaining market-opening reforms.