- The CRC Series on Competition, Regulation and Development
Edited by Paul Cook and Sarah Mosedale
Chapter 6: Regulatory Policy Transfer
INTRODUCTION Western views on regulatory reform have had a growing inﬂuence on governments in developing countries. Indeed, donor organizations such as the World Bank and the International Monetary Fund have pressed such countries to adopt Western models on the assumption that this will beneﬁt their economies. But it is now recognized that direct policy transfers often fail to produce the expected results. We argue that the impact of policy change is strongly aﬀected by the political, legal and social context. Just because a policy works well in one country does not mean it will do so in another (Minogue, 2002c). Rather than simply apply a standard model, policy-makers need to analyse their own situation and tailor policy to ﬁt. The question of whether policy transfer is derived from a process of learning from others’ experience or simply from copying is dealt with in Box 6.1. When policy transfers are not undertaken voluntarily but rather as a result of donor pressure there is a serious danger that reforms will exist mainly on paper and make little real diﬀerence. It is also likely that such an approach will underestimate or neglect the inﬂuence of the political context in determining a response to reform pressures (Jordana and Levi-Faur, 2004b; Minogue, 2004a). THE POLITICS OF REGULATION Politics aﬀects regulatory reform in many diﬀerent ways. For example, privatization and regulatory reform are more likely to occur in some sectors, such as telecommunications, than in others, such as the...
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