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Sophia Stento

Dr. Sherry Hu

Summer Internship

12 July 2023

The United States’ Role In The Application of Regulatory Policy

The United States’ sway in global policy has never been in question. Historically, the

country has had immense influence on foreign policy, emerging as an economic superpower that

currently holds the highest global Gross Domestic Product. The economic and political record of

the United States has illustrated the need for regulation to ensure ethical administration. Acting

within the confines of their own government and economic systems, most countries recognize

the need for regulations, or at least experience the effects of their absence. The presence of these

laws is a huge contributor to effective governance in wealthy countries, but far less prevalent, in

the most vulnerable of countries. The United States must set the standard of regulation; utilizing

its economic fortitude and experiences to extend the reach of regulatory policy.

More broadly, regulatory policy refers to standards or requirements put forth by the

government to help achieve a desired outcome, the key distinction being either economic or

social. Economic regulation references entry and price controls, meaning who can enter what

industry and what prices can be charged for their goods or services. Social regulation

encompasses the rules set for the ways in which businesses or individuals conduct their

commerce, with consideration of externalities; the consequence and/or costs of a business's

actions on third parties. With an ever changing society, the needs of the people and their
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economy have changed. The historical record, contemporary culture, economists, politicians, etc.

all work together, providing insight that guides current regulations and restrictions. As a result,

this sub-division of legislation has become critical in ensuring lawful citizenship to countless

people all over the world.

Governments and economies are sometimes subjected to international analysis and

assessment by oversight institutions, which have compiled comprehensive records of global

government actions. This record allows for greater understanding of what is and is not working

policy-wise, and where. Accessing, spreading, and urging the application of knowledge obtained

from these institutions is a task better suited for a government with more expansive resources

and influence such as the United States’, as can be seen when juxtapositioned to Colombia, a

much less affluent country navigating the aftermath of a civil conflict spanning nearly six

decades.

Comparing these countries through The Organization For Economic Cooperation and

Development's(OECD) Regulatory Policy Outlook 2021 offers evidence of the successes of

regulatory policy. The OECD conducts an international survey, utilizing the results to assess and

analyze the implications of regulatory policy on the economy. The Regulatory Impact

Assessment or RIA is of particular interest. This composite indicator aims to evaluate effects of

current and prospective regulatory policies and their non-regulatory counterparts. The RIA

consists of four categories; 1)Systematic Adoption, 2) Methodology, 3) Oversight and Quality

Control, and 4) Transparency. According to Indicators of Regulatory Policy and Governance

(iREG): United States, 2021, the United States scored .8 in Systematic Adoption, a .7 in

Methodology, a .5 in Oversight and Quality Control, and .7 in Transparency(OECD, Country

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Profiles: United States). On the contrary, Colombia scored much lower with a .3 in Systematic

Adoption, a.2 in Methodology, and .2 in Transparency, not posting a score in Oversight and

Quality Control(OECD, Country Profiles: Colombia). To fully understand these numbers, we

must understand the measures with which they are associated. Systematic Adoption speaks to the

“...formal requirements and how often these requirements are conducted in practice”,

Methodology refers to “…the methods used in each area…”, Oversight and Quality Control

“records the role of oversight bodies and and publically available evaluations'', and

Transparency, which is responsible for “...record[ing] information from the questions that relate

to the principle of open government’(OECD, Annex A. Reader’s Guide). The scores earned by

the United States compared to Colombia supports that our government has a much larger

platform for this kind of policy, being that these scores are essentially crediting the capacity and

effectiveness of a country's existing regulatory policy. Further, the scores suggest that

implementation’s enduring effects are more widely experienced in wealthier countries. These are

the same countries that can afford better public health services, more expansive social security

etc. The discrepancy in scores incites inquiry about the differing experiences of American and

Colombian citizenship; bringing us to the World Justice Project’s Rule of Law Index for 2021.

The WJP Rule of Law Index is an international measurement on the rule of the law. In

more simple terms, the index monitors accountability in practice of the law. The index is released

annually and composed of eight factors, four of interest. The Open Government, Fundamental

Rights, Civil Justice, and Regulatory Enforcement factors all speak to the experiences of the

people within the jurisdiction. Open government encompasses just that, the openness of the

government with their people. This factor is somewhat of an outlier here, but is worth seeing
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given that the Policy Outlook discusses Transparency as well. The Fundamental Rights factor

speaks to the upholdment of basic human rights, with the Civil Justice factor looking specifically

at the upholdment of civil rights. The most telling factor, Regulatory Enforcement oversees the

implementation and enforcement of government regulations. Colombia scored 35/139 in the

Open Government Factor, an 87/139 in fundamental rights and in civil justice, and 91/139.

Lastly, a 62/139 in regulatory enforcement. The United States, on the other hand, received a

16/139 in Open Government, a 42/139 in Fundamental Rights, a 22/139 in Civil Justice, and a

22/139 in the Regulatory Enforcement factor(WJP, Rule of Law Index). On the index, greater

adherence to the rule of the law results in a lesser score. Colombia doesn’t place nearly as well as

the United States, much like in the Policy Outlook. Colombia, who possesses the smaller

political platform and economy, is unsurprisingly the one scoring higher here.

The numbers in and of themselves are not as important as the picture they paint. The

OECD’s Outlook outlines the levels of implementation and success of regulatory policies,

revealing strong economies akin to the United States’ as leaders in the implementation of

regulatory policy. Positive and negative effects of these policies aside, it’s apparent economically

stronger countries perform better. The trend seems to carry over into the index, where the

countries with larger economies and more vast regulatory policy receive lower scores and rank

higher. Countries experiencing the positive impacts of regulatory policy are all proof of why it

exists, but that is seemingly not enough. Globally, we face pandemics, climate disasters, etc. The

effects are felt at every corner of the world, yet not every country is setting and following

standards to improve the circumstances.

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The United States is the richest country in the world, providing a unique position in the

global playing field. It must be acknowledged that the United States’ enterprise was not obtained

entirely ethically, nor has it been handled as such. The legacy of atrocities committed throughout

colonization, coupled with current injustices, solidifies that the United States and its systems are

far from perfect. Not every policy put into place is effective, nor is every right protected.

However, wealth has yielded the country great political power and influence. As living proof of

its’ successes, America must drive a greater application of regulatory policy for all global

citizens.

Works Cited

OECD. OECD Regulatory Policy Outlook 2021. OECD Publishing, 2021

WJP. “WJP Rule of Law Index.” Worldjusticeproject.org , 26

Oct.2022,https://worldjusticeproject.org/rule-of-law-index/factors/2021/Colombia/Regula

tory%20Enforcement/. Accessed 3 Aug.2023.