0 remedies and regulatory strategies the leveson inquiry 12 october 2011 professor robert baldwin...
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REMEDIES AND REGULATORY STRATEGIESREMEDIES AND REGULATORY STRATEGIES
THE LEVESON INQUIRYTHE LEVESON INQUIRY12 OCTOBER 201112 OCTOBER 2011
Professor Robert Baldwin The London School of Economics and Political Science
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STRATEGIES AND SMART REGULATION
STATE INDUSTRY SELF-REGULATION
CORPORATION
ADVICE ADVICE ADVICE
EDUCATION EDUCATION TRAINING SUPERVISION
PERSUASION GUIDANCE INCENTIVES
WARNINGS/NOTICES WARNINGS REVIEWS
CIVIL LAW REMEDIES SANCTIONS PROMOTIONS
CRIMINAL LAWS AND SANCTIONS
DISQUALIFICATION DISCIPLINE
DISQUALIFICATIONS DISMISSAL
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THE DREAM FRAMEWORK
1. DETECTION GAINING INFORMATION ON UNDESIRABLE BEHAVIOUR
2. RESPONSE DEVELOPING TOOLS TO DEAL WITH THE PROBLEMS
3. ENFORCEMENT APPLYING TOOLS ON THE GROUND
4. ASSESSMENT MEASURING SUCCESS OR FAILURE
5. MODIFICATION ADJUSTING TOOLS AND STATEGIES
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1. DETECTION CLANDESTINE OPERATIONS
REACTIVE
RESOURCES
2. RESPONSE CONSISTENCY
A RULE - BOUND WORLD
3. ENFORCEMENT MEDIA FREEDOM
A POLITICAL ISSUE?
DETERRENCE ASSUMPTIONS
4. ASSESSMENT OFF THE SCREEN ISSUES
5. MODIFICATION THE CHALLENGE OF LEGISLATIVE CHANGE
CRIMINAL LAW APPROACHES
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1. DETECTION RESOURCES
POWERS TO INVESTIGATE
2. RESPONSE EXPERTISE
3. ENFORCEMENT EVIDENCE
COMMITMENT
DAMAGES
UNDER-DETERRENCE
4. ASSESSMENT WHO ASSESSES?
5. MODIFICATION WHO INSTIGATES LEGAL CHANGE?
CIVIL LAW APPROACHES
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1. DETECTION PUBLIC FAITH
POWERS TO DETECT?
2. RESPONSE SELF-SERVING?
3. ENFORCEMENT RECORDS OF SELF-REGULATORS?
WHAT DOES COMPLIANCE MEAN?
4. ASSESSMENT INCENTIVE TO GLOSS
5. MODIFICATION WHY CHANGE?
INDUSTRY SELF-REGULATION
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1. DETECTION - HIGH POTENTIAL
- HOW TO INCENTIVISE FIRMS
(ADJUST SANCTIONS?)
2. RESPONSE - DIFFERENT WORLD VIEWS
- TRUST IN GOODWILL / SKILL
- COUNTER INCENTIVES AND THE REWARDS OF SIN
3. ENFORCEMENT - WILL SANCTIONS BE MATCHED BY REWARDS?
- CREATIVE COMPLIANCE
- SCAPEGOATING / TOP-DOWNISM
4. ASSESSMENT DEFINING / MEASURING SUCCESS
5. MODIFICATION INCENTIVISING IMPROVEMENTS IN BEHAVIOUR
REGULATION WITHIN THE COMPANY
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WHAT ARE THE REGULATEES LIKE?
WELL-INTENTIONED LOW CAPACITY
WELL-INTENTIONED HIGH CAPACITY
ILL-INTENTIONED LOW CAPACITY
ILL-INTENTIONED HIGH CAPACITY
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SPECIAL CHALLENGES
• VERY HIGH INCENTIVES TO ILL-INTENTION• STRONG CULTURE AND RESISTANCE TO
‘ILLIBERAL’ REGULATION• VERY HIGH CAPACITY• VERY HIGH POWER TO CAPTURE AT THE
HIGHEST LEVELS• DETECTION AND ENFORCEMENT
• OWNERSHIP AND POWER ARE THE PRIMARY ISSUES
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DESIGNING GOOD REGULATION
AIMING FOR THE PERFECT DESIGN
- BEST GUESSING
- HOPING IT WORKS
MODIFICATION
- SENSIBLE ADJUSTMENTS OR - MOVING THE GOALPOSTS?