In 2003, Britain’s Better Regulation Task Force issued a document describing “Principles of Good Regulation“.
It is worth a fresh look.
Back in 1997, the Task Force suggested that policy intervention and enforcement, should meet these five principles:
- Proportionality
- Accountability
- Consistency
- Transparency
- Targeting
The 2003 document reminded policy makers that they have a wide range of options available for implementing their policy objectives, and encouraged the leaders to “consider them all, rather than automatically assume prescriptive regulation is
required.”
- Do nothing
- Advertising campaigns and education
- Using the market
- Financial incentives
- Self-regulation and voluntary codes of practice
- Prescriptive regulation
Although some suggest that markets aren’t working, the Task Force suggested that regulation is not necessarily the cure.
Government can remove problems preventing markets from working effectively or can introduce a market where none exists.
Often markets do not function effectively if participants do not have all the information necessary to make an informed decision. Industries can adopt codes of practice, regulating the provision of information themselves or Government can require producers of goods or services to provide relevant information or provide the information itself.
On the subject of prescriptive regulation, the Task Force warns:
There are areas where this is the best means of achieving a policy objective. However, prescriptive regulation, like many other means of government intervention, may have unintended consequences… It will often be less flexible and less sympathetic to the way markets work than other tools.
What characteristics do Canadians expect from its regulatory authorities?
The 2003 document from Britain’s Task Force includes a section entitled: “Tests of good regulation, and pitfalls to be avoided”. In it, the Task Force states “Regulations must: Be balanced and avoid knee-jerk reactions; Seek to reconcile contradictory policy objectives; Balance risks, costs and benefits; Avoid unintended consequences; Be easy to understand; Have broad public support; Be enforceable; Identify accountability; Be relevant to current conditions.”
Using the Task Force tests, how would Canadian regulators and regulations be scored?
Something to discuss at The 2016 Canadian Telecom Summit, coming up in less than 2 weeks. Have you registered yet?