2. The resulting Regulatory System: Co-Regulation The development of self-regulatory mechanisms requires a new attention to the interaction between public and private regulators Today, the role of private regulation is increasing more as a complement to public regulation rather than as an alternative
11 2. The Resulting Regulatory System: Co-Regulation • The development of self-regulatory mechanisms requires a new attention to the interaction between public and private regulators • Today, the role of private regulation is increasing • more as a complement to public regulation • rather than as an alternative
Co-regulation between public and private regulators Instead of taking over all the components of regulation the self-regulator may be invol ved at the standard setting stage by developing a code of practice while leaving enforcement to the government O the government may establish regulations but delegate enforcement to the private sector 12
12 Co-regulation between public and private regulators Instead of taking over all the components of regulation: • the self-regulator may be involved at the standard setting stage by developing a code of practice • while leaving enforcement to the government Or: • the government may establish regulations • but delegate enforcement to the private sector
Monitoring and Resulting Standard setting enforcement Regulatory system Public Public Traditional Public requlatory law Private Private Pure private regulation SOFT LAW Private Public Co-requlation REGULATORY CAPTURE Public Private Co-requlation
13 Standard setting Monitoring and enforcement Resulting Regulatory system Public Public Traditional Public regulatory law Private Private Pure private regulation SOFT LAW Private Public Co-regulation REGULATORY CAPTURE Public Private Co-regulation
Hard law and soft law The rules or standards issued by private actors may have varying degrees of legal force They are normally purely voluntary: soft law But they may become formally binding: hard law
14 Hard Law and Soft Law The rules or standards issued by private actors may have varying degrees of legal force: • They are normally purely voluntary: soft law • But they may become formally binding: hard law
An example of soft law resulting from rivate regulation Technical standards for products set by private associations can become the product safety and quality standard in private transactions either by express incorporation into contracts or as the default standard 15
15 An example of soft law resulting from private regulation Technical standards for products set by private associations can become the product safety and quality standard in private transactions - either by express incorporation into contracts - or as the default standard