Good quality regulations provide necessary frameworks and protections, while avoiding unnecessary barriers to competition, innovation, trade, and investment. OECD work shows that countries can, through regulatory reform, reap very substantial gains in terms of both economic performance and policy effectiveness. In globalising world markets, regulatory reform can produce even greater benefits by allowing domestic businesses to participate in the competition for capital, technologies, and markets. The session was based on case studies of the economic and social benefits and costs of moving toward more market-oriented regulatory regimes, followed by a general discussion. Lack of an adequate institutional basis for regulatory oversight of key sectors has blunted competition and delayed structural reform, distorted incentives for market actors, reduced the social value of investments, and provided opportunities for corruption.
Political leadership is essential.
Regulatory Reform shows, regulatory reform that enhances the capacity of the economy to adapt, innovate, and otherwise respond to consumer needs can stimulate economic growth, and help economies make the most of the opportunities of globalisation and technological change. At the same time, good regulation can help governments better achieve important public policy goals in areas such as safety, health, and environmental protection. Regulatory Reform A fundamental objective of regulatory reform is to improve the efficiency of national economies. Reform that sharpens competitive pressures provides powerful incentives for firms to become more efficient, innovative and competitive. These improvements can boost the productivity of entire industries and bring sharp and swift price reductions and improvements in the quality and range of products and services, to the benefit of consumers and user industries.