Regulatory policies

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Regulatory policies are a series of legal norms that governments impose, in order to establish the rules that govern the economic and social behavior of people, companies, instances of the government itself and between governments of different countries.

That is, they are the procedures that regulate and tender an activity; whether for profit or not.

Regulatory policy rules

Regulatory policies establish a series of requirements to ensure that the rights and obligations of individuals, companies and countries are respected. Which is carried out through different elements:

  • Laws.
  • Regulations.
  • Guidelines.
  • National and international agreements.

Regulatory policy risks

Regulatory policies bring with them certain complexities, such as:

  • Insufficient data.
  • Unforeseen collateral damage, such as market distortion.
  • Insufficient innovation.
  • Breach of the rules.

In order to avoid the risks of inappropriate regulatory policy, it is necessary to establish bodies for the supervision of negative effects and inspection of compliance.

Likewise, and for the rules to be fair for all, different instances have been generated, one of them is the Network of Economic Regulators (NER) of the Organization for Economic Cooperation and Development (OECD). Those who manage to define them, becoming a "world-class regulator." Which is recognized between countries.

The NER must be independent and transparent, thus not obeying unilateral interests, in order to ensure efficient public services and good practice from all economic actors in the world.

The members of the NER are present in strategic sectors such as transport, communications, energy, etc.

Each regulatory policy has specific purposes. For example, there are some that promote productivity, those that promote economic growth, those that protect or mitigate the damage to natural resources, those that are protectionist, those that articulate administrative procedures, those that allow free competition between countries, etc.

Regulatory improvements

In these scenarios everything is perfectible and in many cases requires updating and contextualization of each country.For example, scientific and technological advances constantly challenge regulatory policies, since they must provide a legal framework that allows society to provide a better quality of life, without violating anyone's rights. Such is the case of the use of drones and the privacy of people or the use and obtaining of stem cells to regenerate tissues.

That is why there is what is known as “regulatory improvement”. That is to say, the governments of the countries are constantly evaluating the effects of the execution of laws and procedures to evaluate their adjustments, reforms or changes that allow them to impact in the desired way, to obtain the optimal functioning in the national and international markets. and the way in which it influences the lives of individuals in each country.

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