Regulatory Agencies—The Challenges of Balancing Agency Autonomy and Political Control

In this article we focus on the dynamic interplay between increase in autonomy of regulatory agencies and political control of those agencies. The general research issues are the weak empirical foundations of regulatory reforms, the complex trade‐off between political control and agency autonomy, the dual process of deregulation and reregulation, the problems of role‐specialization and coordination, and the questions of “smart practice” in regulatory policy and practice. The theoretical basis is agency theories and a broad institutional approach that blend national political strategies, historical‐cultural context, and external pressures to understand regulatory agencies and regulatory reform. This approach is contrasted with a practitioner model of agencies. Empirically the article is based on regulatory reform in Norway, giving a brief introduction to the reform and agency context followed by an analysis of the radical regulatory reform policy introduced recently by the current Norwegian government. We illustrate how regulatory reforms and agencies work in practice by focusing on two specific cases on homeland security and telecommunications.     

Deregulation redux: does mandating access to bottleneck facilities necessarily improve welfare?

We demonstrate that deregulation in the form of vertical separation of network components into natural monopoly and potentially competitive markets does not truly represent a lessening of regulatory burdens. That is, vertical separation is not synonymous with deregulation; “more competitors” is not equivalent to “more competition”. We assume a public interest regulator that is constrained to set a unit price that maximizes expected welfare subject to a break-even constraint. We show that under both symmetric and asymmetric information cases the information demands on the regulator of the vertically integrated system are no greater than those in the case of vertical separation.     

The Regulatory Gift: Politics,regulation and governance

This article introduces the “regulatory gift” as a conceptual framework for understanding a particular form of government‐led deregulation that is presented as central to the public interest. Contra to theories of regulatory capture, government corruption, “insider” personal interest, or profit‐seeking theories of regulation, the regulatory gift describes reform that is overtly designed by government to reduce or reorient regulators’ functions to the advantage of the regulated and in line with market objectives on a potentially macro (rather than industry‐specific) scale. As a conceptual framework, the regulatory gift is intended to be applicable across regulated sectors of democratic states and in this article the empirical sections evidence the practice of regulatory gifting in contemporary United Kingdom (UK) politics. Specifically, this article analyses the 2011 UK Public Bodies Act, affecting some 900 regulatory public bodies and its correlative legislation, the 2014 Regulator's Code, the 2015 Deregulation Act, and the 2016 Enterprise Bill. The article concludes that while in some cases the regulatory gift may be aligned with the public interest – delivering on cost reduction, enhancing efficiency, and stimulating innovation – this will not always be the case. As the case study of the regulatory body, the UK Human Fertilisation and Embryology Authority, demonstrates, despite the explicit claims made by legislators, the regulatory gift has the potential to significantly undermine the public interest.     

Withering in the Heat? In Search of the Regulatory State in the Commonwealth Caribbean

This article explores the “regulatory state hypothesis” in the context of electricity and telecommunications regulation in Jamaica and Trinidad and Tobago. This article questions whether institutional features associated with the regulatory state are triggered by a preference for efficiency and added complexity within the policy domain. This article progresses in three steps. After setting out the regulatory state hypothesis as derived from the work by Giandomenico Majone and its empirical consequences, the article explores the four cases in brief. Although the empirical evidence broadly supports the regulatory state hypothesis across domains, states and over time, some puzzles in terms of reform trajectories and extent of regulatory reform do emerge. The final section explores these puzzles through an actor‐centered institutional perspective. It is suggested that the “regulatory state hypothesis” may be useful for predicting institutional arrangements, but has difficulty in accounting for the extent of regulatory reform and timing.     

The Danish ‘Competition State’: Still Along the Third Way?

This brief review article addresses the question of whether the so-called “competition state” was “abandoned” during the recent Danish election of 2019, which brought the Social Democrats back in government under the leadership of Mette Frederiksen. During the prior Social Democratic government of 2011-2015, led by Helle Thorning-Schmitt, this concept was introduced as a highly controversial policy concept and came to summarize the government’s program of economic reforms and recovery. The concept was subsequently strongly criticized in broader public political discourse as well as by the Social Democratic party and Mette Frederiksen herself. It is thus worth considering, whether the competition state reform program has been “buried” with the recent election, as this might imply a more radical break or discontinuity away from the “third way” competition state reform program embarked upon by most western European Social democrats since the 1990’s. This article will, first, briefly review the public discussion about the competition state in Denmark, before it, second, will recapitulate the academic debate about the competition state and clarify the concept. Third, it will review central tenets of the economic policy of the Thorning-Schmitt government of 2011-2015, as well as, fourth, the announced reform program of the new Social Democratic government. Finally the article will contrast and compare the two programs, and conclude that the “competition state” to a large extent endured the election of 2019, even if the Frederiksen government seems to lead the Danish competition state into reform trajectory towards increasing dis-universalization of social security and pensions.     

The regulatory state and the UK Labour Government's re‐regulation of provision in the English National Health Service

Following its election in 1997, the UK Labour Government embarked upon a 10 year program of reform of the National Health Service (NHS). By 2005, Labour had doubled the NHS budget and dramatically transformed the shape of the Service. In England, a basic characteristic of the NHS is the organizational split between provider and commissioning agencies. In this article I argue that Labour's re‐regulation of NHS provision is a coherent representation of the influence of the “regulatory state” in restructuring arrangements between government, market, and society. The article offers an account of the regulatory state based on a discussion of five key theses: The Audit Society, Regulation Inside Government, The New Regulatory State, The British Regulatory State, and Regulatory Capitalism. The article unfolds Labour's program of reform across themes common to these accounts: the division of labor between state and society, the division of labor within the state, the formalization of previously informal controls, and the development of meta‐regulatory techniques of enforced self‐regulation. It concludes that the key themes of the regulatory state are at work in Labour's transformation of NHS provision and it offers a discussion of the implications for both scholars of regulation and the UK and European health policy literature.     

Rejecting “rights-based approaches” to development: Alternative engagements with human rights

Following the growth of “rights-based approaches,” an increasing trend within recent research has been to establish the diverse opportunities, challenges, and potential pitfalls such approaches offer development NGOs. Although these areas remain important to current policy and practice, they equally stifle further research that is required concerning alternative engagements with human rights. This article argues that closer attention must be directed towards understanding how and why numerous development NGOs have rejected such approaches, whilst also embedding a strong and strategic use of “rights talk” within everyday campaign practice. This article draws upon recent qualitative research into practitioner responses to “rights-based” and wider human rights practice and, in so doing, enlists an in-depth analysis of two distinct subcategories of development NGOs — “faith-based” and “political.” The article proposes two current “perspectives” on human rights practice and a new and alternative engagement with a discourse of rights.     

Ideology in Policy Debates: Congress and the S&Ls in the 1980s

Is a national value such as free enterprise relevant to congressional debates of important economic policy bills? This question was examined using debates of three reform bills that dealt with savings and loan industry problems in the 1980s. To employ free enterprise concepts in justifying policy stands challenged legislators because industry problems contrasted sharply in the early 1980s (overregulation) and later (excesses under deregulation). Research demonstrated, however, that free enterprise concepts dominated the earlier discussions and, intriguingly, were at the center of the 1989 debate about bailing out the industry and reforming it. The conclusion elaborates free enterprise's role and speculates about the influence of another national value on the S & L discussions. Enactment of the Financial Institutions Reform, Recovery Enforcement Act of 1989¹ capped a decade of congressional struggle with the question of how to treat the problems of federal savings and loan institutions. Popularly known as “thrifts” or “S & Ls,” their status became a matter of increasing concern to Congress as the 1980s unfolded and public indignation over a prospective government bailout of unprecedented proportions mounted. This article focuses on an aspect of this struggle that has a larger significance, namely, the place of national values2 in the genesis of important economic policy statutes. Given the predilections of American society, the value that tends to loom largest in major economic policy debates is popularly know as “free enterprise” or “the market economy.” One may reasonably object that U.S. capitalism operates under a “mixed economy” whose features include enterprises owned or sponsored by the federal government as well as government subsidies and regulation of private businesses. The short answer to this objection is that the term free enterprise is used here in a mythic sense and “myths are an essential starting place for insights into how values shape policy…” (de Neufville and Barton, 1987). In essence, this article examines the following questions: (1) Did congressional debates on proposed statutes relate provisions of the 1980, 1982, and 1989 bills to free enterprise concepts? (2) If so, what adjustments were made in these concepts for the sharply contrasting circumstances encountered by S & Ls in the course of the decade? and (3) How was the peculiar relationship of government deposit insurance of S & L accounts to free enterprise treated in the bills? Two background sections introduce the discussion.     

Different encounter behaviors: Businesses in encounters with regulatory agencies

Studies on regulatory encounters have shown that the interaction between regulator and regulatee is important for implementation of public policy. Much of this research examines how the behavior of frontline workers in such encounters affects regulatee compliance, that is, an outcome of the encounter, but we know less about the behavior that regulatees bring to these encounters. This paper therefore examines how businesses behave in encounters with regulatory authorities, and whether we can identify distinct, multidimensional types of encounter behavior. Using survey data from representative samples of Danish businesses and an exploratory cluster analysis, we identify five types of encounter behavior. We label these “Cooperators,” “Accommodators,” “Game players,” “Protesters,” and “Fighters.” We believe this framework provides a useful next step in a research agenda on businesses' behavior in regulatory encounters.     

Implementing independent regulatory agencies in Brazil: The contrasting experiences in the electricity and telecommunications sectors

This paper explores hypotheses that could explain both the creation of independent regulatory agencies (IRAs) in Brazil, and the differences in the design of the Brazilian IRAs in the telecommunications and electricity sectors. To formulate specific hypotheses that make sense of the Brazilian case, the paper critically interrogates the “weak state” hypothesis and the “political bias” hypothesis. The first argues that countries with flawed governance structures, such as Latin American countries, are less likely to establish independent regulators than European countries. The second argues that “political bias” is a determinant factor in predicting the implementation of IRAs in Latin America. The first part of the paper uses these two general hypotheses as a basis to formulate specific hypotheses to explain the creation of IRAs in Brazil. The second part of the paper formulates specific hypotheses that could explain why institutional guarantees of IRA independence are stronger in the telecommunications sector, than in the electricity sector. In particular, the paper argues in support of a revised version of the “political bias” hypothesis to explain sectoral divergence, suggesting that bureaucratic resistance to reform may be the cause for the variations observed in Brazil between regulatory reform in electricity and in telecommunications.     

When risk‐based regulation aims low: A strategic framework

This article develops a strategic framework for regulators to employ when choosing intervention strategies for dealing with low risks and reviewing performance, building on the analysis by the same authors in the previous edition of this journal. The framework occupies the operational “middle ground” between risk analysis and formal enforcement action. At its core is a matrix, the Good Regulatory Intervention Design (GRID), which provides a framework to categorize sites or activities on the basis of two factors: the nature of the risk and the nature of the regulatee. Using GRID, regulators can select which intervention tools to use, and determine the overall level of regulatory intensity that should apply. GRID is accompanied by the Good Regulatory Assessment Framework (GRAF) for agencies to use in reviewing their performance and provides a step‐by‐step process for enabling “double loop learning.” The article also argues that the process of developing such a framework highlighted the extent to which “low risk” and “high risk” regulation are distinct. “Low risk” means “low priority.” Justifying why certain risks should not receive much regulatory attention requires a particular type of engagement, and has a bearing on the regulatory strategies that are adopted.     

Regulating public procurement in Brazil,India, and China: Toward the regulatory-developmental state

Since the 1990s, emerging economies such as Brazil, India, and China have adopted transparency-enhancing public procurement regulations in line with international norms. Yet they have hesitated to join the World Trade Organization's legally binding Government Procurement Agreement (GPA). Based on the Special Issue framework, this article scrutinizes the underlying domestic and international determinants, and how they influence emerging countries’ positions in two overlapping international procurement regimes. In particular, reform-oriented state actors, societal pressure, and lesson-drawing from international templates have induced a strengthening of domestic procurement institutions and turned emerging countries into “promoters” of the international transparency regime. Conversely, the rising powers have remained, to varying degrees, reluctant “spoilers” of the GPA-based market access regime in order to keep policy space and use procurement for domestic development objectives. The article suggests that this regulatory-developmental layering of rule-based governance and interventionist ambitions characterizes the variegated regulatory state in emerging countries.     

Aquinas’s Ecological Vision: Natural Law and Friendship in Contemporary Environmental Political Thought

This article examines Aquinas’s thinking about law and nature to show that for Aquinas natural law is not about deriving or finding normative rules (standards) in the order of the cosmos or requirements of practical rationality. Rather, I argue that for Aquinas, natural law is a distinctive way of theorizing relationality and embodiment in the “sublunary realm”: one that aims at “friendship” across species lines (STI-II99.2-3). The word Aquinas uses to describe this ecological practice is synderesis. For Aquinas, synderesis is both the human-creaturely capacity to grasp the analogical structuring of reality and the “disposition” that allows us to work on transforming this reality into belonging-together through our participation in natural law (STI79; DV15-17). Synderesis is thus of central importance to Aquinas’s account of natural law, yet it is largely overlooked by modern natural law theorists. The article concludes by exploring how Aquinas’s natural law thinking might contribute to an environmental politics of friendship.     

Disentangling governance: a synoptic view of regulation by government, business and civil society

Governance became a catch-all concept for various forms of steering by state and non-state actors. While it pays tribute to the complexities of steering in poly-centred, globalised societies, its fuzziness makes it difficult to oversee who actually steers whom and with what means. By focussing mainly on actor constellations, the article disentangles governance into seven basic types of regulation, four of them representing public policies with varying degrees of government involvement and three depending solely on civil society (civil regulation), on businesses (industry or business self-regulation) or on both (civil co-regulation). Although each of the seven types is well known and extensively researched, they are rarely joined in a synoptic view, making it difficult to grasp the totality of contemporary governance. After introducing the seven basic types of regulation and co-regulation, the article addresses the interactions between them and it adds the widely used concepts of hybrid regulation and meta-governance in distinct ways. The synoptic view provided here helps to comprehend how governmental deregulation has been accompanied by soft governmental regulation as well as “societal re-regulation”. The concluding discussion emphasises that this “regulatory reconfiguration” is the cumulative product of countless, more or less spontaneous initiatives that coincide with forceful global trends. It also stresses that the various forms of regulation by civil society and business actors are not simply alternatives or complements to but often key prerequisites for effective public policies. Although the essentials of the typology developed here can be applied universally to a variety of policy issues, I focus it on how businesses are steered towards sustainable development and Corporate Social Responsibility.     

WOLF'S MODEL: Government Failure and Public Sector Reform in Advanced Industrial Democracies

Many developed nations have embarked on public sector reform programs based on the New Public Management (NPM) paradigm. This article seeks to evaluate the efficacy of NPM reform strategies as a means of dealing with the problem of “government failure” in public sector hierarchies by examining these strategies through the analytical prism provided by Wolf's theory of nonmarket failure. Drawing on the New Zealand experience, we explore the potential for NPM reform initiatives to mitigate the problems of nonmarket supply. Moreover, we examine how “autonomous policy leadership” and “advocacy coalition networks” can overcome the various obstacles to the successful implementation of reform strategies delineated by Wolf under his “conditions of nonmarket demand”. The article then focusses on the efficacy of NPM in removing, or at least reducing, the various forms of government failure identified in Wolf's taxonomic catalogue of nonmarket failure. We conclude by assessing some of the likely tradeoffs involved in the application of NPM reform programs.     

Private regulation and global economic change: The drivers of sustainable agriculture in Brazil

What determines the uptake of private sustainability regulation in developing countries? Existing studies point to the local context as the key explanatory factor. In particular, they identify local program characteristics, industry structures, and the regulatory environment as variables influencing program uptake at the point of production. However, examining two very similar certification programs in Brazil's soy and sugarcane industries, this article finds that local conditions fail to account for the observed patterns. A “local explanation” would have predicted similar levels of industry uptake in the two sectors. Conversely, it is found that Brazil's soy producers first backed but then opposed private sustainability regulation, whereas in the sugarcane sector the dynamic was exactly the opposite. Through an in‐depth analysis and cross‐case comparison this article reveals how changing transnational conditions were decisive in shaping these outcomes. Specifically, shifting end markets exposed the two sectors to different economic and regulatory pressures.     

The Emperor Has No Clothes! Power and Resources within the Greek Core Executive

International attention has focused recently on the reform “failures” of Greece in the context of its European Union membership. Systemic constraints are increasingly recognized. The present article argues that attention ought also to be given to the inner workings of government at the center and their undermining of reform capacity. It explores the nature of the Greek core executive across five premierships and argues the supposed supremacy of the prime minister is something of a fallacy. In reality, the structure is one of a “solitary centre” amid a “segmented government.” As such, the closest parallels are with Central, rather than Southern, Europe. In developing its empirical analysis, the article makes a methodological contribution to the examination of core executive relations and resources.     

The Shale Gas Revolution: U.S. and EU Policy and Research Agendas

The “shale gas revolution” raises a host of questions for policy makers and researchers on both sides of the Atlantic. We provide a brief overview of the regulatory environment as it relates to hydraulic fracturing for natural gas in the United States and the European Union. We then pose a set of open questions, which we believe should shape policy and research agendas surrounding shale gas wherever the development of this resource is being pursued or considered.     

China’s National Space Program and the “China Dream”

ABSTRACT

The article investigates how the “China Dream,” set as a national Chinese goal through 2049, is underpinned with achievements in outer space. Deriving from the Carl von Clausewitz hypothesis on “the continuation of political objectives by other means” and referring to Xi Jinping’s official statements that link space achievements to these “other means,” the Chinese national space program (focusing on substantial technical details to elicit evidence of progress and how concrete achievements lead to economic and geopolitical advantages) is examined. This article shows that the increasing number of space assets China possesses, including space-based technologies developed either independently or in mutually beneficial partnerships, are crucial for advancing socialism in the Chinese context and in altering the current global balance of power in a more favorable way to China.     

自媒体时代的政治传播秩序及中国调适

政治传播秩序系政治秩序与传播秩序有机耦合而成。自媒体时代政治传播秩序变革呈现出新图景:“传-受”关系角色融合,信息流动立体对冲,“权势”格局去中心化,“节点”移位流程再造,线上线下双层互动,参与沟通机制转向,情感意见高度聚合,政治目标共生共享,文明契合价值转化,总体模式类型蜕变。应对自媒体时代政治传播秩序变革,中国应做出主动调适:确立政治传播秩序由“一元主体”主导到“多元主体”共享的总体理念;把新时代中国特色社会主义协商民主的秩序要求贯通到政治传播新秩序的建构中;更新对政治传播“内容”的理解,扩充“政治信息”的内涵和包容量;释放政治信息的生产权和传播权,激活政治传播秩序中媒体的独有能量;依托中国特色社会主义政治传播秩序的优势,为全球政治传播新秩序贡献中国经验。