Justification for intervention for economic regulatory efforts arises out of alleged inability of the marketplace to deal with particular structural problems. Of course, details of any program often reflect political force, not reasoned argument. Yet thoughtful justification is still needed when programs are evaluated.[1]
The case of water reform in Chile is an interesting one. First of all, it allows us to think about a situation where regulatory reforms face political decision-making through the outcome of proposed legislation. Secondly, the case doesn’t deal with lack of political commitment, but rather involves a situation where the government now faces an important question of passing a legislation that directly affects their households – the main question is not whether to privatize, but how to regulate what will be privatized. Finally, it shows us the importance of having a credible and independent regulatory framework in order to have effective reforms.
Despite the successful accomplishment of SENDOS, government had few concerns it was facing with publicly owned companies:
- It had to restructure the public entity that was responsible for regulating quality while providing the service. SENDOS did not have the authority for economic regulation and control of tariffs which was under the Ministry of Economy. Only after the reforms a regulatory agency, SISS was established and given a right, among others, to set tariffs and audit companies. But even then, it was constrained it its ability due to much dependency on the government.
- The regulatory system did not provide the government with credible checks and balances system. Besides defining a geographic area the company was obliged to serve, a lot was unclear including indefinite duration of concessions, giving companies the right to transfer or sub-contract to another provider which could be revoked by the government for non-compliance with procedures for revocation that were not spelled out. This added to the next issue of financing of water utilities.
- The government heavily depended on appropriations from national budget and loans. Because of the existence of insufficient tariffs to cover operating costs, government had to bring changes in management and the structure of regulation separating the quality and tariff regulatory functions from those of service provision. Sewerage treatment needed significant investments in water treatment especially in metropolitan area Santiago. Although three new water treatment plants were planned to be constructed under BOT with EMOS, targets of treating 100 percent of all wastewater by 2005 set by the Chilean administration did not seem realistic given an increase (up to 80 percent) in the amount of funding now needed for annual investment.
Instead of the current administration making a swift and decisive action to deal with these insolvent institutions, there were many bureaucratic attempts to delay action so that the problems would not become a polit...
...t education and the enlargement of knowledge base, but with something as serious as the privatization of water a little more finality is needed.
Miron, J. (2010). The case against the fiscal stimulus. Harvard Journal of Law and Public Policy, 33(2), 519-529. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/347581655?accountid=28180
listened to and has had some if not all of its aims met and autonomy
Government intervention was and is still necessary to remedy the inequities that evolved from economic liberalism. Antitrust laws were deemed to prevent undermining competition of monopolies and cartels, labor laws to protect rights of workers; public utility regulations to prevent consumer exploitation, food drug laws were designed to protect health of the people, antipollution measures to preserve our environment, safety regulations enforced to protect workers from injury and socioeconomic legislation to promote the common good.
To some price regulation seems to offer the vision of a free lunch by checking the monopolistic power of health care providers. To others, it offers a convenient way to lower the predicted budgetary cost of entitlement spending. A third motive seems to be a longing to redistribute resources to patients deemed needier.
Each policy has its own importance and individual purpose but we see Regulatory as the most important. Regulatory effects next to every American and the goal of Regulatory policies is to protect Americans from next to everything. Unlike costly Redistributive policies, or small scale Distributive policies Regulatory policies stand out as the ones that do the most good for the largest amount of Americans.
In developing a policy people need to recognize a problem, the concern can be of natural disaster, unsafe workplace, or the cost of medical insurance; all these function as distressers to people. To take control of the problem, the society needs to recognize that the government can and should attain to the problem and solve the public’s concern (N.A., 2015). The policymaking process starts off with Policy Formulation Phase which consists of the critical first step in policymaking which is Agenda setting; this process describes the steps by which particular problems, possible solutions and political circumstances emerge (Longest, 2010). The problems as previously stated are society concerns of natural disaster, unsafe workplace, and the cost of medical insurance, to name a few. As a society initiates a problem, there should be a possible solution or alternative solutions to move the processes into Political Circumstances. In the process of a problem and a solution being finalized, it will not be sufficient en...
Grillo, I. (2009, April 11). Dry Taps in Mexico City: A Water Crisis Gets Worse. Retrieved January 2014, from Time: http://content.time.com/time/world/article/0,8599,1890623,00.html
“the exercise of that authority is curbed and shaped by the concern of government officials for its possible adverse effects of business, since adverse effects can cause unemployment and other consequences that government officials are unwilling to accept. In other areas of public policy, the authority of government is again curbed and shaped by concern for possible adverse effects of business” (Lindblom page 178).
.... Measures to avoid a situation of that nature must focus on the enactment of effective policy by both local and national governments to regulate their industries, and focus on having an adequate number of revenue-generating industries so as not to jeopardize public interests.
Over all the appropriate role of government has always been an argument discussing whether it is actually helping our economy or is the government gaining too much power over the markets. However the economy could not prosper without the actions imposed to assist in diffusing the power over the markets and regulating as well as enforcing the law in order for things to done in a beneficial way to both the consumers and the markets.
Post bureaucracy does constitute and advance on bureaucratic organization because it is the answer to the flaws of the bureaucratic system. Post-bureaucracy was aimed to fix the issues with the bureaucratic system. An important feature of post bureaucracy is Trust because it has a lot of advantages. Though it can be costly for the business. Trust refers to a lack of discipline as employees are motivated to do well for the organization. By implying rules it could prove negative for the organizations relationship with its employees and customers. Trust in post bureaucracy is designed so that stakeholders of the organization feel as if they are a vital part and essential to that organizations function. Trust is used to the ensure happiness of all the people related to the organization. A successful occurrence of this is at Homebase where the managers allow staff to issue discounts to customers when appropriate. This trust could easily be betrayed and could be misused and cause Homebase a lot of financial loss if the staff used this to their own advantage. A decline that has been largely attributed to piracy is websites that have illegal movie downloading which lead to a decrease in sales mention veronica mars movie. It is evident from these figures that the ability to download copyrighted material is being abused, and the confidence of organizations has been broken. This conveys that the trust aspect of post bureaucracy is inconsistent.
... privatization to cut down on its spending and public sector. Although tax payers continuously complain of high taxes and demand for a reduction in the public sector, it doesn’t however mean the demand for public services is declining. Government should therefore adopt measures and make fundamental reforms in the public sector.
One main causes of water scarcity is water mismanagement worldwide. Water mismanagement has become a crisis of governance that will impact heavily ...