Regulatory Goverance in Developing Countries

Minogue M,  Carino L "Regulatory Goverance in Developing Countries" Edward Elgar Publishing 2007

• In developing countries privitisation has been incomplete and faltering so regulatory reforms will proceed piecemeal. New focus on "regulatory state' as apposed to "welfare" or "provider state".
• Origional literature saw role as legal and rule based compliance and acountability. Majone (1999) exxamines waht he descirbes as extenstive delegatiojn nof policy making poweres to various regulatory bodies, judiciaries, tribunals and other regulatory and adjudicatie agencies.  If they get to far from political process may -> lack of accountability.
• Key to effective regulatory state are - extent to which decisions are delegated, nature/structure of governance, rules that specificy procedural frameworkscope for political principals to overrule agency decisions, relative autonomy of financial resources, etent of ex post monitoring.
• The traditonal model of legal rules, formal structures of organisation, rational policy choice and assumed implenetation of formal policies has limitations.  Oversimplifies complex processes from which policy debates and decisions emerge and neglects the political discouorce of rule-making and rule application emerge - interplay of ideals, interests and resources and ways in which these interactions deterine outcomes. In sum analysis of regulation involves analysis of ideas, institutions, processes, activites and actors and their byriad of interrelationships.
• Key to much of the book is the idea of models that emenate from economically and politically powerful countries..(where) an idealised m odel rooted in developed country practice and aid donor preferences is transplanted with little attempt to odify it to fit the many and varied political and institutional contexts."  Aid donors must learn to accept that local poolitical cultures wil shape and mediate..Others (Vass) suggest that with modification and adaptation the YK model of regulatory governance can be emulated.
• Also need to be aware of where deregulation is needed when regulation is leading to rent-seeeking activities by political and bureaucratic elites. Legaspi - over-regulation is dangerous and and can -> corruption.  Regulators should have understanding of technical realities and be independant. Their lawyers and accountants must match the industry's own staff so that neither the state nor the public are misled by the arguments and figures produced by the regulated firms. 
• Must be careful that while it may seem appropriate to task government with public interest - sometimes their indpendance is absent and their desire for rent seeking override goals of efficiency and competitiveness.
• Relationship to poverty reduction -  Underlying philosophy still the process of 'trickle down' of benefits -> reduced poverty.  One major issue is inequality of income distribution in growth. Example of disaster is Manila where regulatory failutres mean that 1.3  m poor have inadequate water.  In Sout Africa 18 (m) were without water. Policy response was a 'water services ladder' - populations could climb each step - but quality of water still low - due to poor understanding of legislation of regulatory requirements and an absence of appropriate financial and managerial resources.
• Eldridge and Goulden - address problem of inadequate capacities in regulatory agencies by constructing a diagnostic model for people and processes which improve performance.