Regulation or the steering of production/ consumption for the sake of augmenting social welfare is undertaken by various sectoral agencies with different immediate objectives. Thus, it is very difficult to develop an integrated and holistic framework for assessing the quality of regulation. Good quality of regulation is very important for the success of regulatory interventions in meeting their objectives.
Given the extreme usefulness of such a framework, CUTS International has undertaken a project, “Quality of Regulation: Case Research and Analysis” to demonstrate the use of a general model for assessing the quality of regulation which can be utilised by developing/developed countries in the near future.
The theoretical framework will involve an investigation into whether regulation is needed at all and use of a quantitative assessment technique and qualitative assessment methods which look at regulatory inputs or outcomes or both. There is enough flexibility in this approach for operating within the constraints imposed by the availability of data and information.
Three country papers have been commissioned – one each for Asia (India), Africa (Kenya) and Latin America (Brazil) to provide a comprehensive picture of the state of regulation in these regions. These papers will assess the quality of regulation in selected sectors and the findings will be collated and major lessons from these presented in a synthesis report.
The same two sectors — petroleum and natural gas, and electricity — will be covered by each country paper. Within petroleum and natural gas, the relative emphasis on the quality of regulation of each component (petroleum versus natural gas) will be determined by its relative importance in the national economy and the regulatory complexity involved.
The study would contain a discussion of the nation’s political and economic environment/setup as quality of regulation needs to be assessed in the context of the realities thus highlighted.
CUTS Centre for Competition, Investment and Economic Regulation
Ph: +91-141-228 2821
Fx: +91-141-228 2733, 228 2485