From government to governance: External influences on business risk management

The influence of external organizations and pressures on business risk management practices has hitherto been examined through the influence of state regulatory regimes on businesses. This article concentrates on key socio‐legal concerns about the influence of the law in social and economic life. We know that the sources of regulation and risk management are diversifying beyond the state. What we do not have is much empirically informed research about the range of sources influencing the business world and in particular the weighting of influence exercised by them. In this paper we explore the understandings regulatory actors have of the different external pressures on business risk management through an empirical study of the understandings of those in the food retail sector about the management of food safety and food hygiene risks. A broader objective is to throw some further light onto the debate about regulation within and beyond the state.     

Regulatory regimes and accountability

This research considers accountability issues for new forms of regulation that shift the emphasis from prescribing actions to regulating systems or regulating for results. Shortfalls at various levels of accountability are identified from experiences with these regimes in the regulation of building and fire safety, food safety and nuclear power plant safety. These experiences illustrate how accountability shortfalls can undermine regulatory performance and introduce a potential for subtle forms of regulatory capture. These concerns underscore the importance of finding the right fit between regulatory circumstances and the design of regulatory regimes.     

Beyond regulatory capture: Coproducing expertise for critical infrastructure protection

Complex industries such as petroleum production, civil aviation, and nuclear power produce “public risks” that are widely distributed and temporally remote, and thus tend to be ignored by the risk producers. Regulation is perhaps the most common policy tool for governing such risks, but requires expert knowledge that often resides solely within the industries. Hence, many scholars and policymakers raise concerns about “regulatory capture,” wherein regulation serves private interests rather than the public good. This paper argues that regulatory capture framing has tended to limit understanding of expertise and its role in governing public risks. Most studies of regulatory capture treat expertise as a source of knowledge and skills that are created exogenously to political processes, and which can therefore be politically neutral. By contrast, we draw on work in science and technology studies that highlight the value‐laden and relational nature of knowledge and expertise, showing how its formation is endogenous to political processes. Thus, we argue for both broadening analyses of regulatory capture to consider the historically contingent and uncertain process of creating expert knowledge, and going beyond the capture framing by considering the challenge of negotiating different epistemologies and ways of life. We illustrate this analytic strategy by examining the history of and current debate about critical infrastructure protection standards to protect the United States electric power grid from cyberattack. We conclude by considering the broader implications of these findings for governing public risks.     

Can public information programs affect risk perceptions?

This article provides the first controlled evaluation of how different information materials explaining the risks from radon influenced people's perceptions of these risks. Using a panel study, it was possible to observe how stated risk perceptions responded to information about indoor radon concentrations and brochures explaining the radon readings. The findings indicate that risk communication policies can be effective in modifying risk perceptions. Moreover, they have three specific implications for radon policy: (1) Public officials should not adopt strategies that provide minimal risk information to the public as a means of avoiding undue alarm, for this can have the reverse effect; (2) measures of the effectiveness of risk communication will depend on how education and behavior change are defined; (3) categorical guidelines about risk without quantitative information can lead people to treat the levels as thresholds, creating an artificial discontinuity in their responses to small changes in risk perceptions.     

Personal attributes and (mis)perceptions of local environmental risk

Individuals' risk perceptions shape their attitudes and behaviors, and to the extent that governments respond to public demands, they also influence public policy priorities. Conversely, risk misperceptions—that is, when risk perceptions do not align with realities—may lead to suboptimal behaviors and inefficient public policy. This study investigates the phenomena of environmental risk misperceptions. Specifically, with an original survey that enables a direct comparison of perceived and actual environmental risks at the local level, it examines the relationships between personal attributes and risk misperceptions. The findings show that individuals exhibit optimism bias in assessing local environmental risk. On average, people rank their communities as experiencing less risk from toxic air pollution than objective measures suggest. Moreover, Whites, males, conservatives, and older people tend to have larger optimism bias and have lower chances of possessing correct risk perceptions than their counterparts, respectively, while respondents who are married, poor, who go to church regularly, and have strong pro-environmental orientation, tend to have smaller optimism bias and have higher chances of possessing correct risk perceptions than their respective counterparts. The systematic misperception of local environmental risk underscores the importance of information provision and risk communication, and the sociopolitical correlates of misperception suggest that targeted and more nuanced strategies are required to correct misperceptions.     

科学民主化:食品安全规制中的公众参与

如何提升政府应对风险、保障公众健康的能力成为学界与政策实务界的讨论热点。在食品、环境与健康领域的风险规制中,充分保障公共利益似乎尤为困难。因为多种情况之下,风险规制的依据是专家的科学知识,结果仍然会引起公众对于行政政策以及专家的不信任。对此,在行政决策中平衡科学与公众参与两种力量日益重要,即"科学"民主化的问题,既强调专家的作用,又要使之与公众交流沟通。科学民主化事实上是公众参与的制度化,关于这一问题的研究对中国行政法的发展意义重大。     

Managing Risk and Regulation in European Food Safety Governance

This article focuses on the state of European food safety governance and offers a view on possible future courses of regulatory policymaking. We begin by examining the deficiencies of the current multilevel governance system in European Union (EU) food safety policy, with an empirical focus on Hazard Analysis and Critical Control Point (HACCP) systems. We then submit that a regulatory agency model (centralization) might perform better than multilevel governance or renationalization in terms of reducing business uncertainty, promoting food safety enhancing innovation, and improving consumer trust in the food supply. Hence it would make European food markets more resilient to recurrent food safety crises. We also argue that the EU's precautionary approach as applied to some areas of food safety risks is tied to legitimacy enhancing objectives of EU institutional actors. Assuming that supply‐side rents will change over time, we submit that emphasis of regulatory impact analysis (i.e., cost benefit considerations) is likely to increase.     

“Carrying the black pot”: Food safety and risk in China's reactive regulatory state

This paper explores the struggles of China's party-state to address chronic food safety problems by adopting international best practices of risk-based regulation. Despite formally adopting risk-based approaches for targeting inspections and enforcement in 2002, implementation has been halting and uneven, as we show in the first analysis of risk-based regulation beyond its OECD heartlands. Drawing on policy document analysis and 36 key informant interviews with food business operators and government officials working on food safety regulation at every level of the state, we identify contradictions between official commitments to risk-based inspection and top-down demands for zero tolerance and strict accountability, which leave local inspectors preoccupied with avoiding blame more than reducing safety risks. Our analysis advances recent scholarship on regulatory states of the global South by highlighting how risk-based ideas, instruments, and practices are refracted through the distinctive norms and style of China's reactive regulatory state.     

欧盟食品安全风险评估制度的基本原则之评析

以欧盟《统一食品安全法》和专门负责食品安全风险评估的欧盟食品安全管理局的相关指引以及其他与欧盟食品安全风险监管有关的政策为主要考察对象,可以发现欧盟食品安全风险评估制度的基本原则有四项,即科学上的卓越性原则、独立性原则、透明性原则和公众协商性原则。通过评析这些基本原则的主要含义、之所以成为基本原则的原因以及这些基本原则得以实现的具体机制,可以发现它们已经不是停留在纸面上的原则,这对我国食品安全风险评估制度的完善具有重要启发。     

Food Brexit and Chlorinated Chicken: A Microcosm of Wider Food Problems

This paper situates food safety concerns raised in the Brexit debate since the referendum and suggests that, although the issue of chlorinated chicken entered public discourse, it represents wider concerns about food safety standards. Food safety has had high resonance in the UK since the 1980s, but Brexit shows how it connects to wider concerns also raised about Brexit, such as impacts on healthcare, the effects of austerity on food poverty, the limitations of low waged employment, concerns about migration and labour markets, and regional economic disparities. Brexit’s impact on the UK food system is immense because food has been highly integrated into EU governance. While food standards can be portrayed as a single narrow issue, the paper suggests it provides a useful lens with which to examine, interrogate and comprehend these wider Brexit politics. The complex realities of food politics and wider food system dynamics undermine any simplistic political narrative of ‘taking back control’.     

Taxation by Citation? Exploring Local Governments’ Revenue Motive for Traffic Fines

Anecdotal evidence suggests that local governments may have a revenue motive for traffic fines, beyond public safety concerns. Using California's county-level data over a 12-year period, this article shows that counties increased per capita traffic fines by 40 to 42 cents immediately after a 10 percentage point tax revenue loss in the previous year; however, these counties did not reduce traffic fines if they experienced a tax revenue increase in the previous year. This finding indicates that county governments probably view traffic fines as a revenue source to offset tax revenue loss, but not as a revenue stabilizer to manage revenue fluctuation. This article also finds that low-income and Hispanic-majority counties raised more traffic fines. Counties that generated more revenue from the hotel tax—a tax typically paid by travelers and visitors—raised more traffic fines, indicating a possible tax-exporting behavior by shifting the traffic fine burden to nonlocal drivers.     

Regulation for Safe Food: A Comparison of Five European Countries

This article explores food safety regulation in five European countries by comparing their main legislation and organizational characteristics. The aim is to gain insight into the particular characteristics of food safety regulation, understand major differences and similarities, and reach a firmer understanding of how regulation evolves. Food safety regulation concerns vital questions, and is a field with a long history. Food scandals – in particular the 1996 BSE crisis – and European integration have prompted major changes. The BSE scandal revealed important underlying conflicts of interest and dilemmas concerning the twin objectives of ensuring safe food while also ensuring honest trade in food. This led to a questioning of existing structures and paved the way for new regulation. The authors' main finding is that food safety regulation has similar origins, addresses similar tasks, and raises similar problems and conflicts in all five countries. A tension between protecting public health and paying heed to business interests, and a struggle for control over this policy field between the administrations of health and agriculture, are common features. However, the configuration of food safety regulation in legislative and organizational terms varies. The comparative focus reveals that national context and history are important for understanding change. This leads to the conclusion that the framing and reframing of the field depend largely on how it is structured and regulated initially, as well as on the constellations of interests and values that are operative and legitimate in each context.     

Gorillas in the closet? Public and private actors in the enforcement of transnational private regulation

This paper examines to what extent the background presence of state regulatory capacity – at times referred to as the “regulatory gorilla in the closet” – is a necessary precondition for the effective enforcement of transnational private regulation. By drawing on regulatory regimes in the areas of advertising and food safety, it identifies conditions under which (the potential of) public regulatory intervention can bolster the capacity of private actors to enforce transnational private regulation. These involve the overlap between norms, objectives, and interests of public and private regulation; the institutional design of regulatory enforcement; compliance with due process standards; and information management and data sharing. The paper argues that while public intervention remains important for the effective enforcement of transnational private regulation, governmental actors – both national and international – should create the necessary preconditions to strengthen private regulatory enforcement, as it can also enhance their own regulatory capacity, in particular, in transnational contexts.     

公共资源市场化配置的风险分析及路径选择

公共资源配置的市场化是对传统行政审批方式的替代和扬弃,但它同时也面临着政治风险、经济风险和社会风险,而实现公共资源配置的市场化的关键在于理念再造、制度再造、体制再造和机制再造。     

Is small beautiful? Village level taxation of natural resources in Tanzania

This article examines collection of natural resources revenue by village governments in Tanzania as part of a decentralisation reform. An analysis of empirical data in the form of taxation records from 14 villages, which collect and retain revenues on natural resources utilisation suggests that decentralising revenue collection to the lowest local government tier may yield: (i) considerable increases in revenue collection; (ii) increased transparency in public finances through requirements that village governments document their incomes and expenditures to the villagers; and (iii) a financial surplus that is used to finance public services at the village level. The evidence presented in this article suggests that decentralising taxation to the lowest local government tier may be a viable approach to enhance revenue collection on the utilisation of relatively low value natural resources, and assure that a share of the collected revenue is used to finance public services. Copyright © 2007 John Wiley & Sons, Ltd.     

The Limits of Regulation: Indirect Party Access to State Resources in Australia and the United Kingdom

The way in which political parties use state resources indirectly (e.g., parliamentary expenses) receives substantial attention in public debate, particularly when surrounded by perceptions of misuse. However, scholarly studies of resources indirectly available to parties through their functions in the state, how they are used and regulated, are rare. This article presents an analytical framework that identifies and categorizes the range of indirect resources linked to parties' institutional roles. It locates these resources within a four‐fold matrix of regulation, distinguishing regimes that vary in their detail and whether compliance is externally monitored. Undertaking comparative case studies of parliamentary resource use in the United Kingdom and Australia, we argue that the blurring of party‐political and parliamentary roles can impede the effectiveness of regulatory regimes that democracies adopt, regardless of detail and external enforcement. These findings have important implications for regulatory reforms that seek to constrain parties' behavior to depoliticize democratic governance.     

Thalidomide, BSE and the single market: An historical-institutionalist approach to regulatory regimes in the European Union

Abstract.  The success of the European Union in regulating the safety of products in the single market differs widely. In the last decade, the regulatory regime for pharmaceuticals has functioned without raising public concerns. The establishment of a European agency for pharmaceuticals in the early 1990s has been evaluated positively by both producers and consumers, and there have been no large scandals so far. At the same time, the food sector was subject to a whole range of crises, of which the BSE scandal was certainly the most significant one. In reaction to this, the regulatory regime for foodstuffs was reformed by setting up the European Food Safety Agency in 2002. This article adopts an historical-institutionalist approach, and thus tries to give an explanation for the striking differences between the two regulatory regimes. Accordingly, the development of supranational regulatory regimes is distinguished by two critical junctures: a crisis of consumer confidence and the establishment of a single market. It is crucial which of these occurred first. If a crisis of consumer confidence leads to the establishment of national regulatory authorities, these authorities act as stakeholders, which could be an obstacle for harmonization, but also ensures a necessary commitment to health and consumer protection once a single market is set up. If national regulatory authorities are missing, it might be easier to set up a single market, but a regulatory deficit is more likely to occur and, in case of a crisis, the whole regulatory regime has to be established at the supranational level.     

风险的制度化与制度的风险——以彩票业为例

从风险与制度的关系角度,分析了彩票业在中国的发展过程以及存在的问题。认为,彩票是国家对社会投机行为进行有序管理的制度形式,实现了国家对风险的制度化利用,达到了通过赋予娱乐行为合法性,筹集社会资金发展公益事业的目的。彩票业的兴起是中国发展市场经济的必然结果,产生的问题反映了市场经济监管体制的不完善,也说明了任何制度建设都蕴藏着潜在风险。要解决彩票发行中产生的各类问题,必须从完善和强化监管机制入手,引导和激励社会公众参与合法的娱乐活动。     

Addressing public risks: Federal earthquake policy design

This article considers the design of federal earthquake policy as an illustration of the difficulties of addressing “public risks” when public indifference, despite general awareness of the risks, is the norm. The present federal earthquake policy attempts to overcome this indifference through strategies aimed at building local governmental commitment to risk reduction and improving nonfederal capacity to implement risk reduction programs. Because of the fundamental difficulties in influencing actions among less capable and willing jurisdictions, federal efforts have resulted in disjunctive impacts among seismic prone regions. Some “leading” communities have become more prepared, while other “lagging” communities in the same region fall further behind. The preferred approach for overcoming these gaps entails a mix of federally backed earthquake insurance coupled with development of local regulatory standards. More generally, strategies for addressing public risks entail modification of the policy tools for addressing such “private risks” as crime and job-related accidents. The changes involve mechanisms that shift from individual responsibility to shared responsibility for addressing the risks.