Regulation is a legislative technique that is responsible for regulating a sector and limiting a right in order to improve other rights or achieve a greater general interest.

The regulation understood as a limit to the right, in reality it is a way to make it effective. For example, when some prices are regulated in the market, the right to freedom is being limited, but at the same time it is making effective the right to be able to acquire these products by the citizens.

An issue that comes to light at certain times in large cities is the regulation of rental prices that limits the right of the owner, but relieves citizens of greater economic pressure to purchase a home. Although it is true that in terms of regulating rental prices, various experts in the field have refused as it could alter the result of supply and demand.

Regulation is also understood as the function of regulating certain sectors that lack standards. For example, there is much use of regulations for the protection of the environment, which often lack strict standards.

Regulatory process

How is this regulation made? What is the process to regulate a sector?

Each country has an established procedure to carry out this standardization, but common principles can be drawn:

  • It begins with inquiries and studies that determine regulatory needs.
  • Objectives, needs and solutions are defined.
  • A preliminary text is made and the possible impact of this normative body is studied.
  • The pertinent organisms will form part of the commission that will make oppositions or notes to the text.
  • Once the new regulation is defined, the approval process is carried out.
  • The last step is the publication so that citizens know about this new regulation.

In addition, there is a control body to verify that current legislation has been complied with in this new development of standards. Likewise, judicial remedies can be filed to challenge the validity of this regulation.

Tags:  history Commerce economic-dictionary 

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