Country case studies: Good practices in EBDM

Theme: Regulatory governance

Type: Section

Date: 2025-08-26

To provide further insight into how policymakers and regulators may incorporate EBDM and RIAs into their decision-making processes, five country case studies are highlighted below as they represent good practices. Canada and South Africa provide examples of good EBDM practices while Australia, Brazil, and the United Kingdom show how regulators may approach RIAs.

EBDM case studies: Canada and South Africa

Canada and South Africa have taken an “all-of-government” approach to implementing EBDM across sectors by adopting regulations that apply to all ministries and regulators. The fundamental principles represented in the national regulations on EBDM are noted below, along with how ICT ministries and agencies have implemented them in their decision-making processes.

Canada: EBDM in ICT competition and consumer regulations

In July 2024, the Treasury Board of Canada Secretariat published a revised Cabinet Directive on Regulation (Regulation Directive) setting out the national government’s “expectations and requirements in the development, management, and review of federal regulations,” as required under the Statutory Instruments Act (TBCS 2024(b)). The Regulation Directive has undergone multiple revisions since it was originally issued in 2012, reflecting the adaptive and iterative nature of EBDM processes. The Regulation Directive applies to all federal departments and agencies that issue regulations, which must implement the directive for a wide range of decision-making processes. The directive details each step that federal bodies must follow, including guiding principles (see Box 6.1); procedures to develop regulations; steps to manage regulations once adopted; and requirements to conduct ongoing monitoring and review of the results.

Box 6.1. Decision-making principles that federal departments and agencies must follow in Canada

Source: TBCS 2024(b).

ISED implements EBDM: Policy direction on competition, consumer protection, and universal access

In 2022, the Department of Innovation, Science and Economic Development (ISED) launched a proceeding to issue a policy direction to the ICT regulator, Canadian Radio-television and Telecommunications Commission (CRTC) (ISED 2022). The focus was on new rules to improve competition and support consumers, leading to lower prices and better telecommunications services for Canadians. During each stage of the process, ISED and CRTC comported with the Regulation Directive, including to adhere to the four principles highlighted above.

For example, prior to issuing the policy direction, ISED opened the proposal to public consultation for 45 days, tabled the draft in both houses of Parliament for 40 sitting days, and consulted with provinces and territories. After amending the draft policy direction based on stakeholder feedback, ISED issued a final order in 2023, requiring CRTC to review a broad range of telecommunications regulation, including fixed internet competition, mobile wireless competition, approach to consumer rights, and measures to support internet deployment and universal access (ISED 2023). ISED’s order included a RIA statement (RIAS), as required by the Regulation Directive. The RIAS detailed the key steps that ISED took leading to the policy direction, as outlined in Box 6.2.

Box 6.2. Key elements of ISED’s RIAS in adopting the final policy direction

Source: ISED 2023.

CRTC implements EBDM: Rules on internet service competition

Based on ISED’s 2023 policy direction, CRTC issued a new Telecom Regulatory Policy in August 2024 on internet service competition. Prior to adopting the new rules, CRTC conducted a consultation in 2023, receiving submissions from over 300 parties. CRTC also sought “significant expert evidence” and perspectives of 22 industry and consumer groups during a weeklong public hearing in February 2024 (CRTC 2024).

Rather than take a “regulate and forget” approach, CRTC “will continue to closely monitor Internet service markets in Canada and will adjust its approach as necessary,” including any additional decisions or follow-up proceedings not covered in the new rules (CRTC 2024). CRTC will assess the effectiveness of the rules by monitoring various market outcomes, such as the number of retail subscribers per internet service provider (ISP); promotion and actual retail internet prices paid by Canadians; and acquisitions of independent ISPs by large, incumbent ISPs. Together, these data will help track whether the new rules are having the intended impact of increasing internet penetration rates, reducing internet service prices, and improving competition among ISPs.

South Africa: Implementation of government-wide EBDM processes

In 2015, the Department of Planning, Monitoring and Evaluation (DPME) issued the Socio Economic Impact Assessment System (SEIAS) Guidelines after a study commissioned by the Presidency and National Treasury determined that some departments and agencies were failing “to understand the full costs of regulations and especially the impact on the economy” (DPME 2015, 3). The purpose of SEIAS is to minimize unintended consequences from policy initiatives, regulations, and legislation, such as unnecessary administrative costs on regulators and implementation costs on market players. SEIAS also aims to “anticipate implementation risks and encourage measures to mitigate them” (DPME 2015, 4).

Cross-sectoral, collaborative, and all-of-government approach to decision making

Under the guidelines, implementation of SEIAS is overseen by an interdepartmental steering committee composed of ministries and officials from the highest levels of government. Nearly a dozen departments and agencies collaborate to ensure that regulations are adopted in accordance with EBDM principles. These include Cabinet Officials, DPME, Economic Development Department, National Treasury, Department of Trade and Industry, Department of Environmental Affairs, Department of Labour, Department of Public Service and Administration, Department of Social Development, State Security, and the Chief State Law Advisors.

Stages of the SEIAS process

SEIAS entails six stages in policy- and rulemaking processes, which are based on weighing costs, benefits, and risks (see Box 6.3). Importantly, public consultations play a key role in SEIAS, including in stages 3 and 5. The government must also conduct and publish draft and final impact assessments before issuing policies, regulations, or legislation. Further, there is ongoing monitoring as “assessment is not a once-off exercise but rather an on-going analytical process that happens alongside and informs the development of policies, legislations, and regulations” (DPME 2015, 8).

Box 6.3. Six stages of the SEIAS process in South Africa

Source: DPME 2015.

Proportionality in the SEIAS process

The SEIAS Guidelines emphasize that “every new rule or policy should be subject to an initial assessment” while the final assessment should be “proportional to the likely impact of a rule (DPME 2015, 8). Thus, not every decision-making process will entail labour- and resource-intensive work on the part of departments and agencies. In cases where the initial assessment determines a new policy or rule will be a routine update, then the final assessment process can be streamlined without hiring consultants or spending months on review.

The initial assessment may determine that more in-depth analysis and wide stakeholder consultation is warranted. This would be the case if, for example, “there will be substantial implementation costs, compliance costs, outcomes, risks, or political sensitivity” (DPME 2015, 8).

Measuring performance of the SEIAS process

The Presidency publishes annual performance plans that measure the government’s overall performance in meeting strategic targets across all sectors. In the Annual Performance Plan 2024/2025, the Presidency assessed the audited outcomes and targets covering 2020 to 2023 and the estimated outcomes and targets covering 2024-2025 (Presidency 2024). Regarding outputs related to enhanced governance, state capacity, and service delivery through effective leadership and coordination of efforts, the Presidency noted that 80 per cent of SEIAS reports received from departments had been analyzed with feedback provided to the respective departments. This metric has been met consistently since 2020.

Department of Communications and Digital Technologies progress under SEIAS

The Department of Communications and Digital Technologies (DCDT) is responsible for leading South Africa’s digital transformation by creating an enabling environment for a digital society that fosters socioeconomic growth. Agencies under DCDT’s remit include the Independent Communications Authority of South Africa (ICASA) and the Film and Publication Board (FPB), representing the ICT and content regulators, respectively.

In its Annual Report for the 2023-2024 Financial Year, published in October 2024, DCDT identifies various outcomes and targets between 2021 and 2024, identifying whether the planned targets were achieved. In cases where the planned targets were not achieved, the report states the reasons for deviations. In three instances, DCDT identifies policies, directives, and legislation that are subject to the SEIAS process, but the targets were not met for varying reasons, as described in Table 6.1.

Table 6.1. DCDT’s assessment of SEIAS implementation in 2023-2024

Source: DCDT 2024.

Despite not meeting the planned targets in the 2023-2024 financial year, DCDT’s annual report demonstrates how government-wide policies requiring EBDM for drafting and adopting policies, regulations, and laws lead to better transparency and accountability in decision-making processes. Based on the above table, the main reasons for not meeting the planned targets relate to budget and financial constraints, capacity needs (such as external consultants to assist with drafting), and determining that further consultation is necessary. Budgetary and capacity constraints are common challenges that regulators face while a finding that further evidence is needed prior to publishing a draft law shows that the process is functioning. Overall, the annual report indicates that DCDT is committed to evidence-based development of policy, regulatory, and legislative initiatives.

References

CRTC. 2024. Telecom Regulatory Policy CRTC 2024-180: Competition in Canada’s internet service markets. Ottawa: Canadian Radio-television and Telecommunications Commission. https://crtc.gc.ca/eng/archive/2024/2024-180.htm.

DPME. 2015. Socio-Economic Impact Assessment System (SEIAS) Guidelines. Pretoria: Department of Planning, Monitoring and Evaluation. https://www.dpme.gov.za/keyfocusareas/Socio%20Economic%20Impact%20Assessment%20System/SEIAS%20Documents/SEIAS%20guidelines.pdf.

ISED. 2023. Order Issuing a Direction to the CRTC on a Renewed Approach to Telecommunications Policy: SOR/2023-23. Ottawa: Department of Innovation, Science and Economic Development. https://canadagazette.gc.ca/rp-pr/p2/2023/2023-03-01/html/sor-dors23-eng.html.

UNDP. 2022a. Strengthening Rwanda ’s Evidence-Based Policy, Planning, Analysis, and Monitoring and Evaluation. New York City: United Nations Development Programme. https://www.undp.org/rwanda/news/strengthening-rwanda-s-evidence-based-policy-planning-analysis-and-monitoring-and-evaluation.