Regulation

Regulation is an abstract concept of management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For example:

Social

Regulation can take many forms: legal restrictions promulgated by a government authority, contractual obligations (for example, contracts between insurers and their insureds[1]), social regulation (e.g. norms), co-regulation, third-party regulation, certification, accreditation or market regulation.[2]

State-mandated regulation is government intervention in the private market in an attempt to implement policy and produce outcomes which might not otherwise occur,[3] ranging from consumer protection to faster growth or technological advancement. The regulations may prescribe or proscribe conduct ("command-and-control" regulation), calibrate incentives ("incentive" regulation), or change preferences ("preferences shaping" regulation"). Common examples of regulation include controls on market entries, prices, wages, development approvals, pollution effects, employment for certain people in certain industries, standards of production for certain goods, the military forces and services. The economics of imposing or removing regulations relating to markets is analysed in regulatory economics.

In some countries (in particular the Scandinavian countries) industrial relations are to a very high degree regulated by the labour market parties themselves (self-regulation) in contrast to state regulation of minimum wages etc.[4]

Reasons

Regulations may create costs as well as benefits and may produce unintended reactivity effects, such as defensive practice.[5] Efficient regulations can be defined as those where total benefits exceed total costs.

Regulations can be advocated for a variety of reasons, including:

The study of formal (legal and/or official) and informal (extra-legal and/or unofficial) regulation constitutes one of the central concerns of the sociology of law.

History

Regulation of businesses existed in the ancient early Egyptian, Indian, Greek, and Roman civilizations. Standardized weights and measures existed to an extent in the ancient world, and gold may have operated to some degree as an international currency. In China, a national currency system existed and paper currency was invented. Sophisticated law existed in Ancient Rome. In the European Early Middle Ages, law and standardization declined with the Roman Empire, but regulation existed in the form of norms, customs, and privileges; this regulation was aided by the unified Christian identity and a sense of honor in regard to contracts.[8]:5

Beginning in the late 19th and 20th century, much of regulation in the United States was administered and enforced by regulatory agencies which produced their own administrative law and procedures under the authority of statutes. Legislators created these agencies to allow experts in the industry to focus their attention on the issue. At the federal level, one of the earliest institutions was the Interstate Commerce Commission which had its roots in earlier state-based regulatory commissions and agencies. Later agencies include the Federal Trade Commission, Securities and Exchange Commission, Civil Aeronautics Board, and various other institutions. These institutions vary from industry to industry and at the federal and state level. Individual agencies do not necessarily have clear life-cycles or patterns of behavior, and they are influenced heavily by their leadership and staff as well as the organic law creating the agency. In the 1930s, lawmakers believed that unregulated business often led to injustice and inefficiency; in the 1960s and 1970s, concern shifted to regulatory capture, which led to extremely detailed laws creating the United States Environmental Protection Agency and Occupational Safety and Health Administration.

See also

References

  1. ↑ Marcos Antonio Mendoza, "Reinsurance as Governance: Governmental Risk Management Pools as a Case Study in the Governance Role Played by Reinsurance Institutions", 21 Conn. Ins. L.J. 53, (2014) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2573253
  2. ↑ Levi-Faur, David, Regulation and Regulatory Governance, Jerusalem Papers in Regulation and Governance, No.1, 2010
  3. ↑ Orbach, Barak, What Is Regulation? 30 Yale Journal on Regulation Online 1 (2012)
  4. ↑ Anders Kjellberg (2017) ”Self-regulation versus State Regulation in Swedish Industrial Relations” In Mia Rönnmar and Jenny Julén Votinius (eds.) Festskrift till Ann Numhauser-Henning. Lund: Juristförlaget i Lund 2017, pp. 357-383
  5. ↑ McGivern, Gerry; Fischer, Michael Daniel (1 February 2012). "Reactivity and reactions to regulatory transparency in medicine, psychotherapy and counselling". Social Science & Medicine. 74 (3): 289–296. PMID 22104085. doi:10.1016/j.socscimed.2011.09.035.
  6. ↑ Biel, R. and Mu-Jeong Kho (2009)"The Issue of Energy within a Dialectical Approach to the Regulationist Problematique," Recherches & Régulation Working Papers, RR Série ID 2009-1, Association Recherche & Régulation: 1-21." (PDF). http://theorie-regulation.org. 2009-11-23. Retrieved 2012-08-09. External link in |publisher= (help)
  7. ↑ Harris, Brian; Andrew Carnes (February 2011). Disciplinary and Regulatory Proceedings. Jordans. ISBN 978-1-84661-270-1.
  8. ↑ John Braithwaite, Péter Drahos. (2000). Global Business Regulation. Cambridge University Press.

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