Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries

This paper examines how government ideology has influenced deregulation of product markets in OECD countries. I analyze a dataset of non-manufacturing regulation indicators covering energy, transport and communication industries in 21 OECD countries over the 1980–2003 period and employ two different indices of government ideology. The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries. This finding identifies remarkable differences between leftist and rightwing governments concerning the role of government in the economy and basic elements of political order.     

Regulation, deregulation and public bureaucracy

Abstract. In 1982, a new Liberal-Conservative government launched a grand deregulatory campaign as part of its programme for restoring the Danish economy. After some initial success, the campaign lost momentum. The government gradually realised that it was difficult to mobilise both economic interests and public opinion for the cause of deregulation. Bureaucratic resistance and disinterest among economic interest organisations together with the erosion of political commitment to deregulation after a couple of years stopped the campaign. Still, some results were reached where least expected.     

The Decline of Traditional State Dirigisme in France: The Transformation of Political Economic Policies and Policymaking Processes

During the Mitterrand years, successive governments' policies of deregulation and privatization have progressively deprived the state of many of its traditional interventionist instruments. As a result of this, as well as of the internationalization of world trade and the economic integration of Europe, French business has become more independent of the state as well as more interdependent. With these changes in both business and government have come a concomitant transformation in French policymaking processes, such that the traditionally heroic government policies formulated absent business input have been succeeded by more everyday ones, where business for the most part leads and government follows.     

The redistribution of regulatory powers between governments and international organisations: the case of European airline deregulation

Abstract. This paper looks at the issues raised when deregulation is also accompanied with redistribution of the residual regulatory powers between governments and international organisations by focusing on the experience of deregulation of the airline industry in the European Community. The paper starts by applying a model of the political market for protection to the specific circumstances of the European airline industry in an effort to clarify the difficulties raised when redistribution of regulatory powers between different levels of government takes place. The findings of this analysis are then used to elucidate the European experience and in particular to explain the gap between the original proposals of the Commission and the final compromises worked out in the Council of Ministers.     

Bureaucrats and Markets in China: The Rise and Fall of Entrepreneurial Local Government

Local government entrepreneurship in China in the reform era is argued to have been, on balance, instrumental to growth and market-oriented reform.¹ Economic factors are emphasized in explaining both its rise and anticipated decline. Undeveloped markets and established local state trading networks favored agencies of the local state in exploiting business opportunities arising from deregulation. However, market development and increasing autonomy of firms are now reducing the advantage of local government business agencies, and they face a diminished and changed role.     

Jurisdictional and constraints on effective competition: The case of rail access regimes

The Commonwealth Government in November 2002 released the AusLink Green Paper which is a blue print for a long term national land transport plan. The release of this document followed the Review of the National Road Transport Commission Act 1991 which recommended the abolition of the Australian Road Transport Commission and to replace it with a National Transport Commission – the new body which would have the responsibility for a national approach to both road, rail and intermodal development. AusLink was established in July 2004 and while an excellent government strategy, a national land transport plan demands the inclusion of an integrated rail network. Prior obstacles to the development of a national focus in rail have been overcome – gauge standardisation of the track and the abolition of state government monopolies. Despite deregulation, however, and the removal of the physical and jurisdictional constraints, other impediments are now appearing which are likely to prevent the effective implementation of a national focus. This is a product of the mechanism of deregulation itself and the development of state based and state focused access regimes which are now a barrier to the effective implementation of national network.     

Reducing Government Involvement in a Market: Lessons from the Privatization of Sallie Mae

Government intervention shapes institutions and markets; even when government seeks to reduce its involvement, it must protect against resulting market distortions. Government provided substantial benefits to Sallie Mae as a government‐sponsored enterprise (GSE). Giving up GSE status allowed Sallie Mae to expand the scope of its financial services beyond restrictions of its GSE charter. Benefits of GSE status led to scale economies and low cost structure that now propel the company's dominance and growth as a non‐GSE. Lessons from Sallie Mae apply to removal of GSE status from other GSEs and to restructuring and deregulation in other economic sectors.     

Modern Central Banking: Pressures for Change

The role of the central bank as an instrument of government economic supervision has entered a period of flux, owing to the combined forces of financial deregulation, technological advance, monetary innovation and banking globalisation. This paper discusses, with special reference to Australia, pressing areas for potential reform in the role of the central bank including greater independence, international coordination, splitting of core functions, and the creation of a 'super-regulator'.     

Heavy Traffic: Trucking Deregulation, Federalism, and Canadian-U.S. Trade

Trucking deregulation, in the interest of competition and efficiency,removes rate controls and grants free entry to the market. Whenthe United States deregulated trucking in 1980, it opened theinterstate market to Canadian carriers. Heavy volumes of tradeby trucking between the two countries make entry conditionsan important bilateral issue. Deregulatory symmetry betweenthe two countries would produce a de facto regime of free tradein trucking services. In 1987 the Canadian federal governmentadopted deregulatory measures similar to those of the UnitedStates, but with more complex and problematic results. The reasons,broadly characteristic of the evolution of Canadian federalism,lie in the ability of the provinces to thwart federal initiatives.Trucking regulation is under provincial control, and to achievea practical effect, the federal government depends upon theprovinces to bring their practices into accord with its policy.Because of differing provincial views about deregulation andpressures from Canadian truckers for continued protection fromAmerican competition, much diversity and contention have delayedand compromised the federal governments purpose. Regulatoryreciprocity is also a question of the provinces and states,with a mixture of strict and easy entry policies complicatingthe achievement of bilateral balance and equity. The largerimplications of deregulation and transborder trucking for Canadalie in the ability of a decentralized federal system to pursuenecessary initiatives coherently.     

National Competition Policy

Economic reform in Australia certainly did not start with the Hilmer Report — it has been underway for the last 15 or so years. It began with financial deregulation and floating of the Australian dollar in the 1980s and the reduction of tariff protection, and includes more recent initiatives such as moving from the centralized wage fixing system to more flexible enterprise bargaining arrangements, restructuring of government business enterprises, developments in public administration and most recently the focus on competition policy.     

STATE REGULATORY REFORM AND FEDERAL REGULATION

In the current political climate, it seems likely that a "New Regulatory Federalism" will push for deregulation at the federal level, with more regulatory responsibilities for the states. During the 1930s, economic regulatory responsibilities were assumed by the federal government. Protective regulation moved to the federal level in the 1960s. Dissatisfaction with centralized regulation has led to attempts at regulatory reform and decentralization. It is expected that these reforms will lead to greater flexibility, and responsiveness to regional differences.     

Privatizing housing: An assessment of U.K. experience

Abstract

This article describes the way in which the government of the United Kingdom has implemented the policy of privatization with respect to housing since coming to power in 1979. It details the main elements and diversity of the policy; it evaluates the results in terms of tenure change, allocation of housing services, prices, and investment; it examines the emerging problems of affordability and access; and it suggests that there have been considerable benefits from both privatization and deregulation in terms of greater efficiency and responsiveness.

However, it also stresses the extent to which government involvement in housing, although undoubtedly shifting away from direct provision, has reemerged through both income‐related and supply subsidies to other landlords. The article concludes that in the United Kingdom, unlike the United States, the provision of adequate housing for all is still regarded as a government responsibility.     

Privatization and Regulatory Reform of Toll Motorways in Europe

This article analyzes current trends in toll motorway privatization in Europe as an illustration of the paradox of simultaneous deregulation/privatization and reregulation. Changes in the form of government intervention are identified as transitions from internal control on processes and inputs to external control on performance outputs. The state guarantees its capability to intervene and seek its own objectives even when giving up public property. In fact, output regulation is a partial substitute for public ownership. We analyze the hypothesis that privatization of motorways spurs price regulation. Indeed, we observe that toll regulation becomes more detailed as the private sector increases in size, which is a regular reaction across different institutional frameworks. This result is consistent with the literature on the rise of a regulatory state, which emerges with a new mode of governance based on indirect government. Moreover, the study provides evidence of the importance of temporal context in modeling public sector restructuring.     

Effects of deregulation and performance on government accountability: Role of trust in Korea,Japan, and the United States

Public administration has been struggling to address the balance between conflicting government values. Trust in the study is employed as nodal value to reconcile modern management dilemma concerning conflicting relationships between performance and accountability and between discretion and accountability. Using 2012 International Social Survey Program data, this paper analyzed the moderator and mediator role of government trust among discretion, performance, and accountability in cases of South Korea, Japan, and the United States. This study used factor analysis and ordinary least square multiple regression analysis. The statistical results partially confirmed the hypotheses regarding the mediating and moderating role of trust: (a) the moderating effect of the trust on the relationship between performance and accountability in South Korea; (b) the moderating impact of the trust on the relationship between deregulation and accountability in Japan; and (c) when governments work well, it leads to high level of trust, in turn followed by high accountability in the United States and Japan.     

Wholesaling in Electricity: Inching Along

This article discusses the incremental but increasingly assertive efforts by federal policy makers toward encouraging deregulation of the electric utility industry. Focusing on the efforts of the Federal Energy Regulatory Commission (FERC), we conclude that the federal government is involved in a sort of two‐sided experiment. On the one hand, efforts to deregulate the electric power industry attempt to establish a competitive market pose the question: Can government provide rational guidance in the formation of markets in a complex industry? On the other hand, it asks whether the democratic process can permit agencies such as FERC to impose and implement an economically rational design on a self‐interested pubic that is mostly interested in cheap, reliable power. In a sense, FERC is auditioning for a new role for regulatory agencies—as designers and overseers of markets. This is a dramatic shift from the traditional role of “regulator as policeman.” Whether regulators are up to the task remains to be seen.     

Deregulation and the Racial Composition of Airlines

Economic theory suggests that the enhanced product market competition of deregulation reduces employers' ability to discriminate when hiring. Recent studies of the effect of deregulation on racial employment in the naturally competitive trucking industry find that deregulation increased minority employment. This study examines the effect of deregulation on racial employment in the airline industry. Because deregulation transformed airlines from wasteful service competition to rigorous price competition, deregulation's effect on racial hiring in this continuously competitive industry is not apparent. This study finds that deregulation only modestly changed the racial composition of major airline occupations, which suggests that the change in market structure as a result of deregulation may largely determine the effect of regulatory reform on the racial composition of an industry. © 2001 by the Association for Public Policy Analysis and Management.     

DEREGULATION: THE PRINCIPAL INCONCLUSIVE ARGUMENTS1

The authors suggest that most arguments in favor of deregulation are really double-edged swords which render the debate over deregulation inconclusive at best. They challenge the following positions as inconclusive: (1) that deregulation per se is good; (2) that it protects rights; (3) that deregulation removes uncertainties concerning the marketplace; (4) that it reduces “nitpicking” and coercive regulation; (5) that deregulation promotes greater productivity and efficiency; (6) that it combats inflation; (7) that regulations often cannot be justified by benefits over costs; and (8) there are serious problems of attaining optimum levels of regulation. Special interest groups in favor of deregulation are seen to bear a remarkable resemblance to groups opposed to deregulation.     

Policy Consulting and Public Policy

The changing nature of governance in Australia over the last two decades has given rise to a broad range of new strategies to review the development and delivery of government policies and programs. Key factors affecting the relationship between citizens and the state have been the deregulation and liberalisation of the Australian economy, with its focus on the market for the delivery of services, once the exclusive domain of public sector organisations. The increased use of consultants over this period is an example of governments going to the market for professional services. Effective policy development and review by consultants requires that they be well versed both in the substantive issues surrounding the policy field as well as in the process required to properly frame and evaluate these issues.     

论新公共服务理论对新公共管理理论的传承与超越

根据库恩的科学范式转换的观点,目前公共行政领域的两种范式:新公共管理范式和新公共服务范式。两种范式的关系并非替代而是传承与超越的关系,这种关系可以通过他们对理性的关注、对参与的关注、对组织弹性化改革与放松管制的态度的比较来说明。了解两种范式的关系对于解决我国目前建设服务型政府中的一些理论和实践困惑有指导意义,提示我们对新公共管理的成果是批判继承而不是抛弃,最终实现公平、公共利益和效率效能价值的统一。     

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.