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Harmonization

One of the key tools of the smart regulation approach is “harmonization,” which refers to

ways of reducing duplication and overlap between governments and government agencies.

As noted, often several different governments or agencies regulate the same activity (or

provide a similar service) for the same or similar reasons. For reasons of jurisdiction or

local circumstances, it is sometimes necessary for more than one government or agency to

regulate an activity. But, sometimes having more than one government or agency regulate

an activity does not add anything to the effectiveness of any of the regulatory programs in

enhancing the public interest. Sometimes, multiple regulatory programs actually reduce

each other’s effectiveness. And, in almost every case, duplication and overlap result in

additional costs that could be eliminated through harmonization without reducing the

benefits of regulation.

Duplication and overlap in regulatory programs increase all of the types of regulatory costs

identified above. In many cases, administrative costs are higher than they would be if

duplication were reduced, especially if the result of harmonization is fewer governments or

agencies regulating the activity. In almost all cases, compliance costs can be reduced if

those being regulated need to provide less information, deal with fewer government

agencies, wait less for decisions and have to stay current and comply with fewer regulatory

requirements and processes. Finally, in most cases, economic costs can also be reduced by

eliminating overlapping regulatory requirements and thereby reducing constraints on

activities and economic distortions.

There are several approaches that can be taken to harmonizing regulation, including the

following:

• Streamlining of processes – agencies and governments working together to provide one

integrated process and set of information and regulatory requirements for...