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Regulation, Markets and Poverty

Edited by Paul Cook and Sarah Mosedale

Regulation, Markets and Poverty incorporates the main policy implications arising from theoretical and empirical research into competition, regulation and regulatory governance in developing countries. This analysis often challenges conventional wisdom and draws on the work of leading experts from a range of disciplines.
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Chapter 11: Capacity Building for Regulation


INTRODUCTION Why do we need an innovative approach for capacity building? Governments worldwide are setting up the new regulatory bodies needed to handle privatization and the liberalization of their economies. However, research on how these new bodies are performing has shown that regulators often fail to understand the strategic planning, organizational and management issues involved in putting their intentions into practice (Cariño, 2002; Eldridge, 2002; Knight-John, 2002). Current literature also reflects this lack of knowledge and does not adequately integrate the necessary regulation and management concepts (Minogue, 2002c; Minogue, 2004b; Ogus, 2004a). Furthermore, most approaches to capacity building do not address this imbalance between knowledge and practice. They remain prescriptive in nature and rely heavily on conventional training to improve performance. It is in these circumstances that our research suggests an innovative approach that allows regulators to analyse the processes that underpin the effective delivery of regulation and to identify ‘good practice’ improvement measures (Eldridge, 2004). This chapter provides a guide to the methodology, stressing a move away from prescriptive methods for capacity building towards instead, generating knowledge and actions appropriate for regulators, given their own specific institutional and country circumstances. THE ESSENCE OF A NEW APPROACH The capacity building methodology described here uses two interlinked diagnostic models. The first focuses on the strategic planning that is needed to convert political intention into viable institutional actions and is adapted from the supplier–input–process–output–customer (SIPOC) model, as described by Tribus (undated). The second model...

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