Regulatory Governance in Infrastructure Industries: Assessment and Measurement of Brazilian Regulators (PPIAF Trends and Policy Options)

This paper assesses and measures regulatory governance in 21 infrastructure regulators in Brazil. Regulatory Governance is decomposed into four main attributes: autonomy; decision-rules; means and tools; and accountability. A ranking is proposed and the main areas for improvement identified. A comparison of the proposed regulatory governance index and other indexes internationally available is performed. Section 2 sets up the analytical framework for the report, identifying key components of regulatory governance, namely, autonomy (political and financial), procedures for decision-making, tools and means (including personnel), and accountability. Section 3 assesses each of these components in practice, reporting the results of a survey with 21 regulatory agencies in Brazil, which was designed and implemented in 2005. Section 4 measures regulatory governance based on three related indexes, ranks the Brazilian regulators among themselves, and compares the proposed indexes with other two indicators available in the literature. Section 5 presents the conclusions. With More Than Us$100 Billion In Private Investments During The 1990s, The Success Of Infrastructure Reforms In Brazil Seemed Inevitable. However, The Current Prospects For Private Participation In Infrastructure Are Far Less Optimistic And Regulatory Risk, Or At Least Its Perception Among Private Investors, Appears To Have Increased. Regulatory Governance, Broadly Understood As The Conditions For The Enforcement Of Laws And Contracts By Regulators, Is An Important Component Of Regulatory Risk. Market-friendly Legislation And Well-designed Contracts May Be Innocuous If Regulators Are Poorly Equipped Or Face The Wrong Incentives For Appropriate Enforcement. Between 1997 And 2005, At Least 28 Regulatory Agencies Were Established In Brazil, Either At The Federal Or State Level. Yet, Only Limited Assessment Of The State Of Regulatory Governance In Brazil Is Available So Far. Regulatory Governance In Infrastructure Industries Provides A Comprehensive Assessment Of The State Of Regulatory Governance In Infrastructure Industries In Brazil And Suggests Possible Indicators For Future Monitoring. The Book Identifies Key Components Of Regulatory Governance, Namely Autonomy (political And Financial), Procedures For Decision Making, Instruments (including Personnel), And Accountability. It Then Assesses Each Of These Components In Practice, Reporting The Results Of A Survey With 21 Brazilian Regulatory Agencies, Which Was Designed And Implemented By The Authors In 2005. Finally, The Book Measures Regulatory Governance Based On Three Related Indexes, Ranks The Brazilian Regulators Among Themselves, And Compares The Proposed Indexes With Two Other Indicators Available In The Literature. Regulatory Governance In Infrastructure Industries Will Be Of Interest To Readers In Federal And State Or Regional Governments, Nongovernmental Organizations, Research Institutions, And Organizations Involved In Regulating Infrastructure. Book Jacket.--jacket. 1. Introduction -- 2. Delegation, Governance, And Regulatory Effectiveness -- Why Is Delegation Needed? -- What Should Be Delegated? -- How Should Delegation Be Managed? -- The Structure Of Regulatory Governance -- Autonomy -- Decision Making -- Decision Tools -- Accountability -- Regulatory Governance And Effectiveness: Two Caveats -- 3. Governance In Practice -- The Survey -- The Results -- Summary Of Results: Can Regulators Be Effective? -- 4. Measuring And Benchmarking Governance -- Methodology -- Results Of The Regulatory Governance Indexes -- Deconstructing The Rgi-83 -- Looking At Regulators -- Federal Versus State Regulatory Agencies -- Old Versus New Regulatory Agencies -- Selected Cases. Paulo Correa ... [et Al.]. Includes Bibliographical References (p. 39-41).