Economic regulation, notes for better regulation is the title of the Degree Master's Final Project, whose main objective is to analyze how the tools of regulatory improvement are slowly being introduced into the Chilean legal system.
19 september 2017
Title: Economic regulation. Notes for better regulation.
Author: Hans Guthrie Solís
The tools of regulatory improvement in the Chilean legal system are only glimmers of improvement, since there is no general and systematic public policy that attempts to apply the ideas of the better regulation in Chile. However, the country has become aware of the need to provide quality regulations, in order to improve national productivity.
In Chile there is a deep economic freedom, which together with the subsidiarity of the State and the protection of and property, manifest the libertarian spirit recognized by the national order. This results in any interference, restriction, regulation or regulation of the State to private economic activities it must always be based on solid foundations that justify the interference of the State in the market. This intrusion in any case must be of the highest quality and reasonableness, so that it does not negatively affect the productivity of the country.
In Chile there is a deep economic freedom, which together with the subsidiarity of the State, manifest the libertarian spirit recognized by the national order
On these ideas, perhaps the circumstance that most moves away from the regulatory improvement is the lack of independence and systematic order of national regulatory bodies. This generates that the attributions that are entrusted to them do not enjoy the necessary technical and objective support. On the contrary, it generates poor quality regulations that at the end of the day become disincentives to develop economic activities in Chile. And as a consequence the private ones are subjected to dense and complex administrative burdens.
Now, in recent years, Chile has slowly realized that the best way to regulate is to do it well. For this reason, manifestations of regulatory reform are emerging, for example, the creation of National Productivity Commission, the mandatory issuance of productivity reports of certain legal initiatives, the guidelines of digital government and, especially, the new financial market regulator. The latter is the Commission for the financial market, created by law 21,000 of February 2017, which contains a series of tools for regulatory improvement. This commission will serve as a model body for the future reforms that the country will experience.
Good quality regulation is the right solution and the best tool to overcome market failures that underlie state interference in the economy. Even before the detection of flaws in the regulation itself, the momentum and efforts of the States should aim to improve existing economic regulations, giving regulators true autonomy and independence of the government and by shielding against possible attempts to capture by the regulated. This will be possible through the general implementation of principles and tools of the better regulation.
