At the end of 2012, NALED created an objective indicator of the quality of the business environment in our country - the Regulatory Index of Serbia (RIS), and since then, the quality of the regulatory environment has been monitored using this indicator. RIS is a quantitative, summary indicator of the transparency and quality of the legislative process, the promptness of the state in law enforcement, the predictability and competitiveness of the regulatory environment.
Information about regulations and changes in regulations is of crucial importance for economic entities, considering that they shape the rules of business on the market. The creation of a business environment stimulating for the development of the economy implies the fulfillment of several important prerequisites, among which the key ones are: predictability and stable economic policy without frequent and sudden changes and greater legal certainty, which is reflected in the consistent application of the law, efficient administration and transparent communication with state authorities. Precisely because of this, NALED formulated the Regulatory Index of Serbia - RIS with the aim of providing insight to both members and the general public into the manner and quality of the adoption and implementation of regulations in Serbia.
The RIS consists of six components, and each of them follows a certain phase of the adoption of the law:
- The plan for amending and enacting laws, which should ensure the predictability of changes to the legal framework in the Republic of Serbia (Component 1);
- Analyzes of the effects before the adoption of regulations (ex ante analyses), which contribute to the validity of decisions, that is, the adoption of regulations with the best ratio of costs and benefits (Component 2);
- The quality of involvement of interested parties, which shows the level of transparency of the procedure for the preparation and adoption of laws (Component 3);
- The method of implementation of the law, first of all the efficiency and timeliness of passing by-laws that enable the operational implementation of regulations (Component 4);
- Openness of institutions during the implementation of the law, which shows whether and how open the institutions are to solving doubts regarding the law in their jurisdiction during the implementation of regulations (Component 5);
- Monitoring the effects of the law, i.e. monitoring the regulatory burden imposed by the law and possible problems in implementation that may lead to a new change in regulations (Component 6).
The total value of RIS for the year 2022/23 is 46 out of a possible 100 points, representing a nearly unchanged result compared to the previous year when the index value was 47 points.
Some of the key results of this year's report are:
- The largest increase in index value from 2021 to 2022, from 1 to 16 points, was achieved in Component 4 - timeliness of law enforcement, specifically in the number of enacted subordinate acts.
- The most significant decrease in index value compared to the previous report is observed in the following components:
1. Predictability of regulation preparation (Component 1) decreased from 47 to 34 index points.
2. Involvement of the interested public in regulation preparation (Component 3) decreased from 85 to 72 points.
- The timeliness of law enforcement remains the lowest-rated component of the Regulatory Impact Assessment with 16 points. The average delay in subordinate acts (750 mapped based on the analysis of 35 laws considered most influential on the business environment) is 535 days. Out of 53 subordinate acts enacted in 2022, 21 (40%) were implemented within the deadlines set by laws.
- Only a third of institutions involved in preparing, adopting, or amending regulations in the past year reported organizing working groups and other forms of consultations.
- According to the research, 92% of businesses, 79% of civil society organizations, and 72% of public sector representatives believe that imposing additional administrative costs is a problem in the regulation-making process.