Effective Regulation: A General Theory of Regulation Dr Donald Feaver and Dr Benedict Sheehy.

Effective Regulation: A General Theory of Regulation

Dr Donald Feaver and Dr Benedict Sheehy

Information Technology Services 2RMIT University©2008

General Theory of Coherent Regulation

• Nature of regulatory problems

• Overall structure of regulatory systems

• Nature and role of coherence

• Coherent Systems Approach

1. Problematisation: organising problem

2. Framing and policy

3. Structure

4. Substantive

5. Compliance


Regulation

• Regulation is controversial

– Effort to change human behaviour is usually controversial

– Conflicting ideas of rights and duties

– Conflicting ideas of role of government

– Complexity in ideas of problems

– Complexity in social living

– Lack of clarity between political and technical aspects of regulation


Regulation: Defined

• Regulation is a political response of government

– Invokes the tools of government (authority, treasure and organisation) “carrots, sticks and sermons”

– To solve a problem or create an opportunity


Regulation: Organising Problem

• Regulation is NOT

– Simple command and control with respect to risks

• Regulation is a response to:

– Socially constructed and identified phenomena

• Where

– Attention drawn to phenomena

– Powerful people agree:

– 1) that it is an issue;

– 2) that a response is desirable; and

– 3) that a regulatory response is desirable

• Such socially constructed phenomena that has attracted attention for which regulatory response may be called is referred to as the “Organising Problem”


Regulation: Organising Problem

• Types of organising problems

– Social, collective problem

– Risk

– Opportunity

• Some aspect of 1 or more


Organising Problem: Normative issues

• What should be done?

• Why should something be done?

– Why not leave it?

– Moral imperative:

– “we should protect our society/ people” or

– “we should ensure people have the opportunity” or

– “there is an opportunity for our society if…and we should…”

• What are the implications of these norms?

– Normative: Political—norm explication and consensus

– Positive: Regulatory—development of a regulatory system coherent with the norms


Political Dimension

• Politicians

– Decide whether to regulate

– Frame the organising problem: collective problem, risk, opportunity

– Frame the normative dimension on the basis of the framing of the problem

– Mobilise political support

– Create policy


Politics and Cultural Dimension

• Full understanding of the problem is difficult. Therefore:

– Rely on cultural evaluation of events

– Rely on experts, but not all

– People who we can trust—people like ourselves in worldview

– culture, politics and economics

– Different from our view is “dirty” and “immoral” (Douglas 1966)/ positive = normative

• We select for regulatory attention—i.e. construct organising problems—according to our worldview

– Seek to reflect and reinforce worldview (Douglas and Wildavsky 1990) Culture and Cognition


Positive Dimension

• Technical issues

– Structural layer

– Substantive layer

– Operational layer


Structure

• Control structures

• Centralised

• De-centered

• Distributed

• Delegated and Private


Structure

• Accountability mechanisms

• Government

• Judicial Review

• Markets and managers


Substantive Coherence

• Governance mechanisms

– Functions

– Jurisdictional authority

– Powers


Operational Coherence

• Compliance

– Cognitive compliance

– Explicit aspects of compliance

• Enforcement


• Thank you

Effective Regulation: A General Theory of Regulation Dr Donald Feaver and Dr Benedict Sheehy.

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