Regulations, Contracting and Public Ownership
Regulation is now more likely to be pro-competitive and to be focused on outcomes rather than
merely prosecuting transgressors.
Regulation can be alternative to public enterprises; that is, government can regulate rather than
owning enterprises that have natural monopoly characteristics that were once seen as a reason for
government ownership.
Contracting with the private sector is a strategy used more often to reduce government final
delivery of goods and services, and is a form of privatization.
Regulation
Regulations can be social or economic. Social regulations are aimed to protecting citizens and
can include environmental rules, occupational safety and regulations on employment. It can be
explained in allowing or prohibiting activities in the economy, or in setting conditions to govern
how economic relations are accomplished. Rules about employment conditions can be both
social and economic regulation.
Market can exist without property rights but it cannot work well in the absence of these rights.
Establishing property rights can be a rationale for privatization. When an enterprise is held in
government hands, its ownership is quite diffuse; but transferring an enterprise to private hands
is assumed to improve both efficiency and accountability; as an owner takes more care of an
asset in which it has a property right.
Business must comply with government-mandated occupational health, safety and environmental
standards.
There are many complaints by private sector that regulations have become too intrusive, stifling
business and affecting competitiveness. Most economic regulations explicitly intended to affect
entry; supply or pricing decisions in private sector has already been eliminated in some
countries.
Financial regulations
Regulation on interest rates, supervision of the banking and financial sector in general, exchange
rates, foreign investment, requirements regarding the registration of companies and their
directors, accounting standards, tax treatment, auditing, etc.
Financial market regulation requires market participants to set out specified information so that
investors can make informed decisions- information must be set out in a prospectus in a
prescribed form- as well as prohibitions on some activities, including conflict of interests.
Safeguarding the public interest requires the regulations of private markets.
Restriction on supply of G&S
Governments often use regulations to allow or prohibit activities in the private sector. There can
be regulation on price, quantity and quality, plus various product or public packaging standards.
Occupational Licensure
Particular professions, such as medical practitioners, dentists, lawyers, plumbers and electricians
often require a government-issued license in order to practice. This kind of regulation has been
regarded by critics as a restriction on economic freedom; a bad lawyer or even a poor doctor
should be sued if their work is not adequate. There is some tension in the relationship between
Regulation is now more likely to be pro-competitive and to be focused on outcomes rather than
merely prosecuting transgressors.
Regulation can be alternative to public enterprises; that is, government can regulate rather than
owning enterprises that have natural monopoly characteristics that were once seen as a reason for
government ownership.
Contracting with the private sector is a strategy used more often to reduce government final
delivery of goods and services, and is a form of privatization.
Regulation
Regulations can be social or economic. Social regulations are aimed to protecting citizens and
can include environmental rules, occupational safety and regulations on employment. It can be
explained in allowing or prohibiting activities in the economy, or in setting conditions to govern
how economic relations are accomplished. Rules about employment conditions can be both
social and economic regulation.
Market can exist without property rights but it cannot work well in the absence of these rights.
Establishing property rights can be a rationale for privatization. When an enterprise is held in
government hands, its ownership is quite diffuse; but transferring an enterprise to private hands
is assumed to improve both efficiency and accountability; as an owner takes more care of an
asset in which it has a property right.
Business must comply with government-mandated occupational health, safety and environmental
standards.
There are many complaints by private sector that regulations have become too intrusive, stifling
business and affecting competitiveness. Most economic regulations explicitly intended to affect
entry; supply or pricing decisions in private sector has already been eliminated in some
countries.
Financial regulations
Regulation on interest rates, supervision of the banking and financial sector in general, exchange
rates, foreign investment, requirements regarding the registration of companies and their
directors, accounting standards, tax treatment, auditing, etc.
Financial market regulation requires market participants to set out specified information so that
investors can make informed decisions- information must be set out in a prospectus in a
prescribed form- as well as prohibitions on some activities, including conflict of interests.
Safeguarding the public interest requires the regulations of private markets.
Restriction on supply of G&S
Governments often use regulations to allow or prohibit activities in the private sector. There can
be regulation on price, quantity and quality, plus various product or public packaging standards.
Occupational Licensure
Particular professions, such as medical practitioners, dentists, lawyers, plumbers and electricians
often require a government-issued license in order to practice. This kind of regulation has been
regarded by critics as a restriction on economic freedom; a bad lawyer or even a poor doctor
should be sued if their work is not adequate. There is some tension in the relationship between
