regulatory frameworks and economic diversification laws, institutions and likely effects
DESCRIPTION
REGULATORY FRAMEWORKS AND ECONOMIC DIVERSIFICATION Laws, Institutions and Likely Effects. Gape KABOYAKGOSI & Masedi MOTSWAPONG 27/08/2014. INTRODUCTION. Regulation IS a tool of government-growing in use! - PowerPoint PPT PresentationTRANSCRIPT
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Gape KABOYAKGOSI &
Masedi MOTSWAPONG
27/08/2014
REGULATORY FRAMEWORKS AND ECONOMIC DIVERSIFICATION
Laws, Institutions and Likely Effects
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INTRODUCTION Regulation IS a tool of government-growing in use!
From government ownership to ‘arms-length’ regulation (globalisation, marketisation, & privatisation)
NOT studying (social regulation: the control of the effects of capitalism on people)
Institutions do matter (NIE) conception. What limits on government power? LawOrganisation Culture
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OBJECTIVES Review the implications of regulatory
arrangements on diversification
Develop a framework to predict the likely effects of regulatory instruments on economic regulation
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Name of Regulator Sector Year Type of Regulatory Institution
BOCRA Telecommunications 1996 Independent Regulator
Civil Aviation Authority Air Transport 2004 Independent Regulator
Law Society of Botswana The Legal Fraternity 1996 Self regulator
Architects Reg Council* Architects 2009 Self regulatory
Botswana Inst of Accountants* Accountants 2010 Self-regulatory
Botswana Stock Exchange The Stock Exchange 1985 Independent Regulator
Botswana Examinations Council Examinations standards 2007 Independent regulator
Botswana Bureau of Standards Various 1995 Standards Authority
Botswana Training Authority Education 2002 Independent regulator
Financial Intelligence Agency Financial 2009 Semi autonomous government Dpt
Botswana Press Council Print media 2002 Self regulatory authority
Botswana Health Profs Council The health professions 2001 Self-regulatory
Engineers Registration Board Engineering Profession 1998 Self regulatory agency
Botswana Examinations Council Schools examinations 2002 Independent regulator
Dept of Environmental Affairs Environment 2005 Government department
National Broadcasting Board** The media 1999 Independent regulator
Botswana Training Authority Telecommunications 2002 Independent Regulator
Tertiary Education Council Tertiary education 2002 Independent regulator
NBFIRA NBFI 2008 Independent regulator
Bank of Botswana Monetary policy 1975 Independent regulator
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JUSTIFICATION
i. The limits of the ‘good governance’ metaphor
i. Many regulatory agencies coming up to manage policy
i. A signal of commitment to external players
ii. Instrument to ‘capture’ certain activities
i. Regulation imposes costs [RIA] [FIAS/BIDPA
i. Interact with external business regimes
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APPROACHReview of laws and organisations # non
mining industries
Laws are enforceable and policies are not
Note that the EDD Strategy falls firmly in the latter
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THEORY & INSTITUTIONALISM Economic theoryPrincipal AgentPublic interest
Types of Regulatory Entity
Social v Economic Regulation
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METHODOLOGY Use of past BIDPA studies
Desk Review Legal Review Review of Official Documents
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POLICY APPLICATIONS Advocacy for regulatory reform Development of framework.
Contestability (highly competitive? High product/service differentiation?]
Ownership type (majority government? Private?]
Credibility (role of the minister? How predictable? Competitive neutrality?]
Entry/exit rules
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RESULTS: AIR TRANSPORT Air Transport:Loss making airliner/protected from competition
BASA and protectionism Domestic entirely protected
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RESULTS: BMCBMC
Poor performing monopoly
Domestically entry is allowed
Exports are disallowed-what’s a small economy to do?
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RESULTS: TELECOMMUNICATIONSTelecommunications
Three players in Mobile
Highly competitive for price
Highly diversified for productsSMS + VoIP + Money Transmission etc
Model to copy?
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RESULTS: ELECTRICITYLegal monopoly # ESA
Very poorly performing state owned utility
Electricity needed for economy to thriveMinister may approve competitor
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RESULTS:COMPETITION REGULATION
Ought to enable entry and diversity
Ought to ensure discipline and fair-play
Has exemptions that ‘kill’ competitive neutrality
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REGIONAL INTEGRATION Botswana member of SACU; WTO; UNCTAD etcSome laws restrict capacity to innovate/grow/diversify
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CONCLUSIONS Laws too restrictive for ‘things’ that
allow diversification
Diversification efforts too ‘govt-centric’
Credibility needs consideration
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SOLUTIONS SET? Separate political influence from
economic decision makingSet up mechanisms to restrict the
discretion of regulators Build more robust acocuntability Take government out of
business/increase competition