Innovative Regulatory Approaches Research Articles

Inclined analysis of water diversion project supply chain profits in the occurrence of whole supply chain damage in undeveloped regions of China.

The main objective of this research is the water redistribution supply network project, which includes the water transportation company and the water work. The innovative regulatory accounting approach is used to build non-cooperative and helpful game models under government endowments. Different levels and types of government subsidies were then considered in terms of water availability, estimation, and benefit-sharing. Results reveal that water supply and price increase in cycles with the number of sponsors, while the cost of water work falls as sponsorships increase. Despite this, the cost of the water plant remained the same while sponsorship levels remained stable. Although the worth of the water transportation company fluctuates, the more endowments it receives when its value is lower. The appropriateness of the proposed game model was illustrated in the Nile Waterway Water Redirection Task.

AFI Innovative Regulatory Approaches Toolkit

Countries and economies around the world are seeking ways to foster their digital finance and financial technology (‘FinTech’) ecosystems to better support financial inclusion and sustainable development. At the core of such efforts are supporting the development of new products and services, bringing more competition and consumer choice into their financial systems and increasing savings and investment to support both individual and community development. At the same time, the potential of innovation must also be balanced against potential risks, in particular financial stability, consumer protection and market integrity concerns. In order to support these objectives, regulators are developing new regulatory approaches, including innovation hubs and regulatory sandboxes (which we collectively term, ‘innovation facilities’) as well as new policy frameworks and the use of technology for regulatory and supervisory purposes (‘RegTech’ and ‘SupTech’). Innovation facilities are created to offer direct and indirect support to novel digital finance and fintech initiatives in a controlled environment. They are underpinned by foundational infrastructure, including mobile and other communications systems especially internet access, digital identification systems (in particular sovereign systems), frameworks to encourage simplified and widespread opening of financial and mobile money accounts, and interoperable electronic payment systems. All of the above enable a range of e-government services as well as an environment for wider commercial development, supporting financial inclusion and progress towards the UN Sustainable Development Goals (AFI 2018). Such foundational infrastructure works best in the context of appropriate balanced and proportional regulatory approaches to innovation, digital finance and FinTech. This includes the general efficiency of the legal system, human capital development, support for research and development, access to information, and availability of financing. More narrowly, it also depends on the use of technology by regulators and supervisorsthemselves (RegTech and SupTech) in order to better achieve regulatory objectives, enhance competition and efficiency (AFI 2020a). This Toolkit provides a structured approach to the implementation considerations of innovative regulatory approaches including innovation facilities for authorities with jurisdiction over financial products and services (which we term ‘Regulators’). It aggregates a variety of resources and case studies to provide guidance for Regulators seeking to answer the following questions: 1. What are innovation facilities? 2. What are the pre-requisites for effective innovation facilities? 3. When should Regulators consider implementing an innovation facility? 4. How to implement an innovation hub? 5. How to implement a regulatory sandbox? 6. How to steer efforts towards regional cooperation in innovation facilities? This Toolkit aims to complement existing guidance on innovative facilities by the Alliance for Financial Inclusion and other stakeholders through providing additional practical evaluation tools. In using this Toolkit, regulators from the AFI network and beyond are invited to employ the attached workbook, which provides self-assessments and exercises to help guide their decision-making process.

BigFintechs and Their Impacts on Macroeconomic Policies

This paper follows directly from the paper “BigFintechs and their Impact on Sustainable Development”, which examines the positive and negative impacts of BigFintech (BFT) activities across the full spectrum of the Sustainable Development Goals (SDGs), particularly with regard to Least Developed Countries (LDCs). This paper serves as an extension of the analysis, specifically on the findings with regard to SDG 16 (peace, justice and strong institutions) to focus on the macroeconomic impact of BFT actors and activities on LDCs. To accomplish the extended analysis, we first address the limitations in bridging BFT activity, SDG indicators and LDC macroeconomic policy impacts. We draw upon the outline of the complex and opaque supply chains, expanding service offerings across multiple business verticals, and the complex ecosystem models that amplify BFT impacts for LDCs. We discuss the key barriers in advancing the analysis including the limitations of the frameworks, tools, indicators and data, to measure the macroeconomic impacts, particularly within the LDC context. Our findings demonstrate that the current narrative ‘digital economy’ sees digital growth, maturity, and market penetration in LDCs largely as positive developments. However, it fails to address the potential for adverse impacts on LDCs specifically owing to BFTs’ complex models and business activities. We then outline the regulatory challenges related to BFT across multiple factors including the cross-border nature of BFT ecosystems and activities, the narrow scope of those digital services, the limitations of foreign exchange rules and taxation classification. In this paper, we set out the positive impacts of BFTs on reducing inequalities, access to capital, increased employment and entrepreneurship and GDP growth, as well as more complex negative implications including potential tax avoidance, crowding out of local businesses and SMEs, evolving ecosystems of interdependence with single points of failure, the potential for draining liquidity from local financial systems and for currency substitution. We discuss the regulatory capacity to address these macroeconomic impacts as well as the new potential points of failure being introduced. The paper then addresses the limitations of current governance parameters and structures that are struggling to keep up with the power, size and complex business model evolution of BFTs generally. The paper points to a widening gap in terms of primary or targeted regulatory focus for LDCs, which are not generally within the scope or mandate of regulators and legislators in more developed markets where most BFTs are headquartered. A summary of the potential macroeconomic impacts and regulatory challenges is followed by a series of conclusions indicating that rather than expanding their current value proposition of financial inclusion, employment and economic growth, BFTs can actually bypass or exploit segments of communities in LDCs with negative environmental, social and economic impacts. We further extrapolate the potential negative impact of BFTs on financial or currency stability that could bypass engagement with national taxation and regulation, through shadow banking particularly given the fragmented regulatory space. Finally, we offer key recommendations to consider with regard to alternative incentives and tools for BFTs to address and report on activities and impacts in LDCs, as well as innovative regulatory approaches for more effective measurement, analysis and remediation of risks and impacts of BFTs on LDCs.

Financial-return Crowdfunding and Regulatory Approaches in the Shadow Banking, FinTech and Collaborative Finance Era

The relationship between financial innovators and regulators has been historically tense, with financial innovators taking advantage of loopholes and regulators desperately trying to keep pace with innovations while dealing with limited resources and long bureaucratic processes. Nonetheless, in recent years, FinTechs – un-regulated start-ups applying technology to finance – have exponentially accelerated such race, making innovative regulatory approaches and new perspectives necessary. The present paper discusses relevant issues pertaining to the regulation of FinTech, using financial-return crowdfunding (FR-crowdfunding) as case study and model, deriving from its FinTech, shadow banking and collaborative economy natures, important indications for regulators. Current trends in regulating FR-crowdfunding in Member States are also analysed, together with related shortcomings and benefits, with the view to proposing a more harmonised regime for the sector, tailored to its risks and features and advancing Capital Markets Union objectives.

System-Level Standards: Driverless Cars and the Future of Regulatory Design

Self-driving vehicles will change how Americans travel, work, and live. They have the potential to save tens of thousands of lives over the coming decades. And they are almost here. This Article provides one of the first sustained scholarly accounts of how the National Highway Traffic Safety Administration (NHTSA or Agency) should regulate autonomous vehicles under the Motor Vehicle Safety Act. Currently, NHTSA sets performance safety standards for many motor vehicle parts and functions. This Article argues for an innovative regulatory approach: system-level standards. In contrast to current regulatory approaches, which regulate the safety of individual automobile parts and functions, system-level standards would protect consumers by requiring an aggregate level of safety for autonomous vehicles. This novel approach to regulatory design would protect safety without stifling innovation. Part I of this Article examines NHTSA’s role in regulating motor vehicle safety. It provides a historical overview and takes an in-depth look at the Agency’s statutory powers. Part II then discusses NHTSA’s current approach to regulating self-driving cars and argues that the Agency is engaging in a three-phase regulatory process. The first phase involves building knowledge and issuing guidance, the second phase is one of cooperative regulatory easing, and the third phase—one that is yet to unfold—will likely involve the implementation of Federal Motor Vehicle Safety Standards (FMVSS). Finally, Part III of this Article proposes a regulatory path forward for self-driving cars. Section III.A develops a taxonomy of FMVSS designed to better analyze the level at which NHTSA should regulate autonomous vehicles. Section III.B then proposes an innovative, system-level regulatory framework for autonomous vehicles. Under the proposal, NHTSA would issue a FMVSS requiring that all autonomous vehicles average no more crashes than today’s human-driven cars based on ten million miles of on-road testing in representative conditions. Sections III.C & III.D end by exploring regulatory alternatives. This Article’s approach to regulatory design offers an immediate path forward as regulators determine how best to govern autonomous vehicles. Equally important, this Article reflects a broader view of regulation—one that protects consumers without constraining technological development. This system-level approach will become increasingly important as technological complexity rises and current regulatory tools lose their ability to protect safety without stifling innovation.

What Are Some Effective Ways to Manage Stormwater?

Recent legislation in California and increased awareness of stormwater‐related environmental issues have led to continued changes and innovative approaches to stormwater management and regulation that could be applied in many states. In 2016, the California State Water Resources Control Board (State Water Board) adopted its Storm Water Strategy (http://bit.ly/2a5GD5A) to further develop innovative regulatory and management approaches to maximize uses of stormwater as a resource.

Doing Bad by Doing Good? Theft and Abuse by Lenders in the Microfinance Markets of Uganda

Microcredit transactions in developing countries create risks for borrowers that are routinely overlooked in the literature. This paper argues that common microfinance-lending methodologies that allow lenders to collateralize loans and unilaterally collect this security create opportunities for malicious lenders to steal from clients in good standing. In places where any lender can simply call itself a “microfinance institution” (MFI), opportunistic lenders can use the halo effect associated with microfinance to encourage borrowers to make themselves unusually vulnerable to theft. Evidence of these abuses can be seen in a case study of Uganda, where theft and fraud by a small number of microfinance institutions created a large-scale crisis and contributed to a precipitous decline in trust in the financial sector as a whole. Even when it occurs only on the margins of the sector, I conclude, this type of opportunism may have problematic implications for all MFIs and undermine efforts to increase financial inclusion. This possibility provides a new impetus to consider innovative regulatory approaches for microfinance.

Regulating healthcare complaints: a literature review.

The purpose of this paper is to explore approaches to the regulation of healthcare complaints and disciplinary processes. A literature review was conducted across Medline, Sociological Abstracts, Web of Science, Google Scholar and the health, law and social sciences collections of Informit, using terms tapping both the complaints process and regulation generally. A total of 118 papers dealing with regulation of health complaints or disciplinary proceedings were located. The review reveals a shift away from self-regulation towards greater external oversight, including innovative regulatory approaches including "networked governance and flexible or "responsive" regulation. It reports growing interest in adoption of strategic and responsive approaches to health complaints governance, by rejecting traditional legal forms in favor of more strategic and responsive forms, taking account of the complexity of adverse health events by tailoring responses to individual circumstances of complainants and their local environments. The challenge of how to collect and harness complaints data to improve the quality of healthcare at a systemic level warrants further research. Scope also exists for researching health complaints commissions and other "meta-regulatory" bodies to explore how to make these processes fairer and better able to meet the complex needs of complainants, health professionals, health services and society.

Techniques in Innovative Policy Making: Example of National Rural Employment Guarantee Act in India

The problem of social ills such as unemployment, poverty, and accelerating pace of rural-urban migration is not only enormous in magnitude, but also complex by nature in developing countries. This article introduces an innovative regulatory approach that addresses the complexity and scale of such problems. An analytical and decision-making model is presented. This model prescribes reflecting on two or more problems simultaneously. Such an approach is expected to create a fresh opportunity for policy makers and scholars in solving problem scenarios, bringing their vantage point to bear on pressing social matters. The model presented in this article is applied to analyze the NREGA or National Rural Employment Guarantee Act, 2005 in India. This Act represents a novel approach to policy-making and demonstrates the positive role governments can play in labor markets. The design, implementation, and promising initial results clearly challenge existing wisdom on how to make effective policy decisions. The framework presented in the article best explains various facets of this remarkable policy and shows how governments can intervene in the labor markets and correct for imperfections. Pioneering future applications to other social and economic challenges are suggested. Also, implications for research and policy are provided.

Innovative regulatory approaches to reduce sodium consumption: could a cap-and-trade system work?

Many regulatory and professional organizations are calling for strict new regulations to reduce sodium consumption on a population basis. New regulations on sodium may have significant public health and economic impacts. This article explores five regulatory options to reduce sodium consumption: 1) maintaining the status quo, 2) improving risk communication and information, 3) revoking generally regarded as safe status of sodium and regulating its use in food products, 4) establishing a sodium tax, and 5) establishing a market-based, cap-and-trade system for sodium that builds on similar approaches in environmental regulatory policy. Cap-and-trade may be a promising regulatory option for sodium and other ingredients.

Labour and Labour-Related Laws in Micro and Small Enterprises: Innovative Regulatory Approaches

States face difficult policy choices in developing labour regulation for MSEs. They must balance the twin - and apparently competing - goals of improving job quality while promoting and rewarding entrepreneurship and economic growth. States must address the challenge of developing the best method of regulating, and so of moving toward achievement of their important policy goals as well as proper functioning of the markets. The findings of this study suggest that States neither must nor should simply exclude MSEs from the application of labour laws. The exclusion of MSEs from labour law only deprives MSEs of the benefits that flow from workers experiencing better job quality. From the point of view of development theory, a State that takes this approach fails to ensure that it is developing its citizens' human capabilities: it thereby fails them as individuals, and society as a whole. This study identifies a number of innovative regulatory approaches that States have adopted to try to achieve the goal of applying labour and labour related laws to MSEs, without imposing significant costs upon them. Some States have adopted legislative measures to redefine the scope of the employment relationship in broader terms. Others have taken a 'staged' approach, for example gradually extending the scope of social security schemes to ensure that over time they include MSEs. A number of States have developed special agencies or units within their labour administration that have particular responsibilities for the promotion of labour law and its application to MSEs.

Distinguishing Product and Practice Regulation in Personalized Medicine

Protecting the public from faulty targeting of medicines, while preserving the crucial distinction between product and practice regulation, may require innovative regulatory approaches and close, ongoing involvement by the medical profession. This article explores four problem areas: validation of clinical claims for tests used in targeting therapies; developing and implementing appropriate restrictions on off-label use; promoting consistent concepts of clinical utility for use in various regulatory, reimbursement, and judicial contexts; and communication of clear information to guide clinicians in appropriate use of targeted therapeutic products. The article suggests an approach for addressing these problems by sharing regulatory activities between the Food and Drug Administration and a newly-created clinical standards board formed within the medical and scientific communities.

Next Generation Approach to Solve Interconnection Problem in Bangladesh

This paper provides a real life case study on usage of Next Generation Networks (NGN) and innovative regulatory approach leading to collaboration among competing operators to solve a complex interconnection problem in Bangladesh. It provides background into the existing interconnection regime in a fast developing telecom scenario, intricacies of the interconnection challenges as well as technological and regulatory options available for such situation. It provides details of a collaborative project taken up by mobile operators including incumbent & regulator with the consultancy support from ITU and UNDP to set up a common Point of Interconnect (POI) using NGN technology at Chittagong. The salient features of regulatory approach and innovative technology used for this project as well as action points for further utilization and improvements have also been suggested.

Innovative regulatory approach to MGP Site clean-up and redevelopment ‘The North Carolina MGP Program’

Innovative regulatory approach to MGP Site clean-up and redevelopment ‘The North Carolina MGP Program’

Who Is the Odd Man out?: The Experience of Western Europe in Containing the Costs of Health Care

Economic, demographic, and technological pressures have led at the same time to increased demands upon health services and the need to contain spending on health care. As the United States has focused singularly on an array of market mechanisms, Western European countries have each adopted a broader set of strategies along with limited de-insurance: innovative regulatory approaches and a move from compulsory health insurance models to flexible national health service models of providing health care. Pursuit of cost-containment in Western Europe has proceeded along with pursuit of quality and, above all else, equity.

Environmental quality criteria: Some considerations

The physicochemical characteristics of the recipient environment into which chemical contaminants are deposited may influence their chemical speciation, mobility, bioavailability, and toxicity. In formulating Water Quality Criteria, the Environmental Protection Agency of the United States (EPA) considered the modifying effect of abiotic environmental factors on pollutant toxicity in an innovative regulatory approach. Scientific knowledge of the interactions and correlations between pollutant toxicity and abiotic factors remains limited. Recognition of the influence of the physicochemical characteristics of the recipient environment on pollutant toxicity has implications for the eventual formulation of regional, rather than uniform and national, criteria. In addition, in developing Water Quality Criteria that incorporate the effects of pollutants on “aquatic life,” EPA primarily focused on toxicity to aquatic animals and plants (including unicellular algae). The effects of pollutants on microbe-mediated ecological processes that are necessary for maintaining the state and quality of the ecosphere (such as biogeochemical cyclings, litter decomposition, and mineralization) were not included in the formulation of the Water Quality Criteria. To facilitate the recognition and quantification of adverse effects of pollutants on these ecological processes, the development of a computation, termed the “ecological dosage 50%” (EcD50) is recommended. Such a formulation could also be applied to setting environmental quality criteria for terrestrial ecosystems.