REGULATORY

FUNCTIONS &
PROCESSES
Cristina Lu E Ranillo
WHAT IS REGULATORY?
 the act of regulating : the state of being regulated: an authoritative
rule dealing with details or procedure safety regulations. : a rule or
order issued by an executive authority or regulatory agency of a
government and having the force of law.
What is regulatory work law?
 Regulatory law involves creating and/or managing the rules and
regulations created by federal and state agencies. There are
careers in regulatory law inside and outside of government in
everything from finance to environmental law.
EFFECTIVE GOVERNANCE
 depends to a large extent upon the method by which laws
are enforced.
 Enforcement of laws should consider:
1. Size of the population component
2. Concentration or dispersal of the population
3. Degree and kind of compliance expected or required
Laws are subject to final interpretation by the
executive whose acts may even be declared ultra
vires (acting or done beyond one's legal power or authority) when
the exercise of administrative discretion goes way
beyond the parameters of the discretionary
prerogative to manage or administer
 Public necessity requires administrative regulation of activities
especially when monitoring and securing compliance can be better
implemented by administrative officials like the following:

1. Public utility regulation

2. Commodity pricing
3. Regulation of the practice of professions
4. Quality control and standard compliance
5. Licensing of business operations
RATIONALE FOR
INTERVENTION
The rationale of an intervention is to address the
needs, problems or issues that are considered to
be priorities in a given context, and that cannot
be addressed more effectively in another way.
DEMOCRATIC POLITY
 polity is (politics) an organizational structure of the
government of a state, church, etc while governance is the
process, or the power, of governing; government or administration.

 Democratic polity is a competitive society where values, ideas,

options and perceptions are allowed free expression such that these
impact on government policies
PUBLIC POLICY
 Is needed to guide and direct activities, rectify imbalances and make much
needed adjustments –hence, government regulation and intervention
 Government intervention is any action carried out by the government or
public entity that affects the market economy with the direct objective of
having an impact in the economy, beyond the mere regulation of contracts and
provision of public goods.
 Example: The government tries to combat market inequities through
regulation, taxation, and subsidies. Maximizing social welfare is one of the
most common and best understood reasons for government intervention.
Examples of this include breaking up monopolies and regulating negative
externalities like pollution.
 Services and goods which the market forces fail to adequately
and appropriately provide for are in the areas of:

1. education
2. Law and order
3. Defense
4. Environmental conservation and protection
5. public transport
6. Health care and sanitation
7. Traffic congestion
8. Garbage collection
9. Waste disposal
10. Pollution
REASONS FOR GOVT.
INTERVENTION
1. REDISTRIBUTING INCOME & WEALTH
2. PROVIDING PUBLIC GOODS
3. PROMOTING FAIR COMPETITION
4. SECURING & SPURRING THE DOMESTIC ECONOMY
5. PROTECTING PEOPLE
6. CHANGING CONSUMER BEHAVIOR
7. PRESERVING THE ENVIRONMENT
8. ACHIEVING MACROECONOMIC GOALS
NEGATIVE EFFECTS OF GOVT.
INTERVENTION
1. GOVERNMENT FAILURE
2. INCREASED COST
3. FEWER OPTIONS
4. DISCRIMINATION POLICY
INTERVENTION can help cushion its negative
impact. Income and wealth distribution which narrow
down the gap between the rich and the poor and
provide the socially desired values are difficult to
come by without government interventions
Thank you!