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2021 | OriginalPaper | Chapter

Introduction: Regulation—A Multifaceted Instrument

Authors : Itzhak Galnoor, Eyal Tevet, Varda Shiffer

Published in: Regulation in Israel

Publisher: Springer International Publishing

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Abstract

The introduction presents the development of the concept of regulation over the past decades, and the ensuing formation of regulatory agencies of varied types. The introduction poses questions related to the underlying values of regulation and thus provides a common framework for the broad spectrum of subjects, issues, and regulatory mechanisms that are discussed in the articles. A glossary of regulation terms is presented to create a basis for a shared language in an area of study that is still in its early stages of theoretical enquiry.

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next chapter Banking Regulation in Israel: Balancing Systemic Stability and Consumer Protection

This introduction is based on Galnoor and Oser (2015).

For the broader definition, which sees legislation, monitoring, and enforcement of laws as part of regulation carried out by the “regulatory state,” see Levi-Faur (2011a, chapter 1).

Regulation, a journal published in the United States since 1977, is devoted to regulation and deals mainly with promoting a policy of deregulation. Regulation and Governance, a journal that first appeared in 2007, combines issues of governance and regulation. See also Majone (1990).

See Baldwin (2006), Baldwin et al. (2012), Barzelay (1992), Behn (2001), Gunningham and Grabosky (1998), Kelman (1981), Levi-Faur (2006), Moran (2003), OECD (2009), Radaelli (2004), Radaelli and De Francesco (2007), Skrzycky (2003), and Sparrow (2000).

That is, it is an inefficient distribution of goods or services that occurs when some individuals are allowed to consume more than their fair share of the shared resource or pay less than their fair share of the costs.

For a fascinating discussion of the economists’ attitudes toward regulation and the question of whether proponents of the welfare state are also in favor of broadening regulation, see Klein (2015).

See, for example, how Jordana and Levi-Faur (2005) applied diffusion theories in their study of “the regulatory explosion” of recent decades, which is manifested in the growth and broad dissemination of regulatory agencies in many countries.

See Levi-Faur (2016).

Carpenter (2010), Levi-Faur (2005), and Majone (2011).

Enron, the American energy corporation based in Houston, Texas, had more than 20,000 employees and a reported turnover of $111 billion. At the end of 2001, it was revealed that the company’s reports of its financial status were based on accounting fraud to an unprecedented extent (McLean and Elkind 2013).

Examples of such regulation include regulation in the area of agriculture, which led to the increase in food prices in Britain; regulation of imports, which limited and made difficult the entry of competing cheap products; in the labor market, primarily in relation to recruitment and dismissal of workers; and in immigration, primarily because of the fear of the entry of large numbers of migrants. These limitations served as a reason for Britain’s vote to leave the European Union in the referendum of June 23, 2016. See also Vogel (2003).

The areas are postal services, work safety, environmental protection, communications, electricity, food, protection of privacy, gas, health services, pharmaceuticals, the central bank, bank supervision, securities, antitrust, pensions, insurance, and water.

Source: Database of Jordana et al. (2011). We received the updated data for 2016 from Prof. Levi-Faur prior to their publication. We thank Libby Maman-Burstein for her assistance in the data analysis.

For a brief summary of the position of supporters of regulation see Dunleavy (1991). For a summary of the position of the opponents, see Niskanen (2002).

On the approach that describes the state as “the regulatory state” and points out the extent of regulatory events as an indicator for examining the relations between the various actors and as an explanation of key aspects of the political-social-economic order, see Levi-Faur (2011b).

The terms listed here are based on a host of sources, and there is a certain amount of overlap between some of the terms. Participants in the Regulation Workshop at the Center for Social Justice and Democracy in Memory of Yaacov Chazan at the Van Leer Jerusalem Institute took part in preparing the definitions listed in this glossary: Motti Boneh, Noi Brint, Itzhak Galnoor, Hanan Hever, Hadar Joana Jabotinsky, Eyal Tevet, Motti Talias, Sharon Yadin, Nissan Limor, Keren Nativ Bornstein, Ruth Plato-Shinar, Hila Shor, and Varda Shiffer.

See also Gunningham and Grabosky (1998).

Black (2002), Hancher and Moran 1989, O’Rourke (2006), and Prosser (2005).

Ayres and Braithwaite (1992), Baldwin et al. (2012), and Parker (2002).

The source of the term collaborative governance—a partnership of organizations and interested agents acting together in the framework of the state, the economy, and civil society. Decision-making is based on consensus and relations of trust between the participants and is carried out by means of a combination of responsibility, policy setting, funding, and execution (Emerson et al. 2011, p. 2). From this approach, we have derived the term collaborative regulation—even though it has no clear definition in the literature and is not commonly used—because we think it has an important role in the perception of regulation in the future. Close synonyms are governance networks, social regulation, and regulatory sociability.

Collaborative regulation is also related to the approach of regulatory negotiation (REG-NEG), which consists mainly of preliminary discussions between the regulator and the regulated to formulate the regulation (Ansell 2016). Another development of this approach is the possibility of seeing collaborative regulation as a creative method for solving problems. On collaborative governance in this context see Ansell (2016).

Regulation based on concessionary agreements as a substitute for regulation of price control. On the approach to a contract as a means of governance and regulation, see Susskind and McMahon (1985) and Yadin (2016).

In the United States, many organizations are active in social regulation. They include, for example, the Equal Employment Opportunity Commission (EEOC), the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), and the Bureau of Consumer Protection (BCP).

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Title: Introduction: Regulation—A Multifaceted Instrument
Authors: Itzhak Galnoor
Eyal Tevet
Varda Shiffer
Publisher: Springer International Publishing
Book: Regulation in Israel
Print ISBN: 978-3-030-56246-5

Electronic ISBN: 978-3-030-56247-2

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-56247-2_1