Effective Regulation A General Theory of Regulation Dr

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

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 RMIT University© 2008 Information Technology Services 2

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 RMIT University© 2008 Information Technology Services 3

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 RMIT University© 2008 Information Technology Services 4

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Regulation: Organising Problem • Regulation is NOT – Simple command 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” RMIT University© 2008 Information Technology Services 6

Regulation: Organising Problem • Types of organising problems – Social, collective problem – Risk – Opportunity • Some aspect of 1 or more RMIT University© 2008 Information Technology Services 7

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 RMIT University© 2008 Information Technology Services 8

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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 RMIT University© 2008 Information Technology Services 10

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 RMIT University© 2008 Information Technology Services 11

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Positive Dimension • Technical issues – Structural layer – Substantive layer – Operational layer RMIT University© 2008 Information Technology Services 13

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Structure • Control structures • Centralised • De-centered • Distributed • Delegated and Private RMIT University© 2008 Information Technology Services 15

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Structure • Accountability mechanisms • Government • Judicial Review • Markets and managers RMIT University© 2008 Information Technology Services 17

Substantive Coherence • Governance mechanisms – Functions – Jurisdictional authority – Powers RMIT University© 2008 Information Technology Services 18

Operational Coherence • Compliance – Cognitive compliance – Explicit aspects of compliance • Enforcement RMIT University© 2008 Information Technology Services 19

• Thank you RMIT University© 2008 Information Technology Services 20