From Graphite to Diamond: The Importance of Institutional Structure in Establishing Capacity for Effective and Credible Application of EU Rules

The countries that have applied for membership of the European Union are currently preoccupied with the huge task of the adoption, application and enforcement of the "acquis communautaire" - the body of Community law, policies and practice. Although the implementation of the acquis is largely seen as a technical issue and has not so far received much public attention, this book explains why it is likely to become more prominent in the next 12 months as the accession negotiations between the EU and the frontrunner candidate countries near their end. The analysis in the book is developed along a series of questions exploring the issue of effective policy implementation in general, and that of EU rules in particular. The questions and answers gradually lead to a proposal on how candidate countries may establish capacity for rigorous application of the acquis communautaire.
It is widely presumed that EU rules will be applied and enforced by the candidates once sufficient and properly qualified staff are hired and adequate amounts of resources are committed to those purposes. By contrast, this book advocates an institutional approach to building capacity for policy implementation.
At the core of integration, in any form, lies the need to secure credible commitments by the partner countries. It will be easier for the candidate countries to demonstrate to the EU a credible commitment to apply the acquis communautaire if they assign the task of implementing EU rules to sufficiently empowered and accountable institutions, which will have considerable decision-making independence and will at the same time be subject to specific performance obligations.
The EU has not yet dealt systematically with the issue of incentives, either positive or negative, that would provide the necessary inducement to authorities in the candidate countries to act effectively and efficiently. This is the theme that underlies many of the findings in this book. Perhaps it is natural to give precedence to knowledge acquisition and investment in essential facilities and equipment. Now, however, issues of institutional design and incentives deserve more attention because it is those that will determine the success or failure of the effective adoption of the acquis in the longer term.