Yet routine updating of regulations is virtually non-existent, and the task has just begun. Finland replaced in 1995 its Land Law of 1734. The United States did not overhaul its 1970 clean air law until 1990, though it is difficult to imagine a field in which understanding changed more in those 20 years than environmental protection. Obsolescence goes deeper than individual rules. Regulatory regimes for labour markets were largely created for economies dominated by manufacturing in large factories, and are ill suited to service oriented economies characterised by labour mobility and self employment.
Incentives are perverse.
Regulatory quality is a public good that has few protectors, and many detractors. It is a public good because, while everyone benefits from good regulation, few have adequate incentives to invest in keeping the overall regulatory system healthy. On the contrary, many of the strongest pressures on regulators weigh directly against these benefits. Regulators are under constant pressure to make decisions more quickly analysis and consultation can slow down the process. Regulators are always criticised if regulations seem to have loopholes flexibility can reduce the certainty of detailed rules.