The CRC Series on Competition, Regulation and Development
Edited by Paul Cook, Colin Kirkpatrick, Martin Minogue and David Parker
Chapter 9: A diagnostic model for capacity building in regulatory agencies
Derek Eldridge INTRODUCTION Cook (2001, p. 161) refers to the effectiveness of regulation being judged according to a multiplicity of goals related to the needs of the various interested parties including owners, investors, consumers and government. Along with other researchers (Kirkpatrick and Parker, 2003; Vass, 2002; Majone, 1999) he describes the dividing line between success in regulation and lack of effectiveness, due to such phenomena as ‘regulatory capture’ and ‘information asymmetries’, an approach much in common with others concerned with the economic and legalistic interpretations of regulatory impact. On the other hand negligible research has been conducted on the manner in which internally located components in regulatory agencies contribute to externally experienced levels of effectiveness. This chapter addresses this deficit of knowledge by highlighting concerns faced by regulators, acting as chief executives, in securing adequate internal performance to enable regulatory policies to be put into effective practice. In line with the views of Minogue (2002), analysis of these institutional components can be undertaken within the language and concepts of the new public management and governance reforms currently being adopted by a range of developing countries. In other words the organisational and management theories discussed here will be familiar to the exponents, observers and critics of the new public management. The chapter is based on a series of discussion held in the energy, multimedia and telecommunications sectors in three countries; namely, the Philippines, Malaysia and South Africa, in the period 2001–02. The objective of this research was to identify the...
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