Regulatory principles for the new economy

Transcription

1 Regulatry principles fr the new ecnmy Andrew Dlling and Peter Laing Ecnmic Refrm 12 May 2017 This presentatin reflects the views and pinins f the presenters, nt necessarily the psitin f the Department f Finance Department f Finance

2 Tday Cntext What is the New Ecnmy Prblem Why we need regulatry principles Regulatry principles fr respnding t and enabling innvatin Implementatin Hw Gvernment can apply the Principles Ecnmic Refrm (2)

3 CONTEXT: What is the new ecnmy Ecnmic Refrm (3)

4 New Ecnmy? Sharing Car sharing Clthes Accmmdatin and venues Tls and appliances NEW ECONOMY Access Fd services Health care Financial services Persnal services Disruptive Tech Drnes 3D Printing Review and bking websites Autmatin Ecnmic Refrm (4)

5 Effect f the New Ecnmy Transfrms existing markets Almst five millin Australian jbs face a high prbability f being replaced by cmputers in the next 10 t 15 years (CEDA). Creates new markets Easier access t infrmatin and cnnects suppliers and cnsumers directly. Cheaper gds and services. Changes hw we wrk and interact Ecnmic activity is mre flexible and dynamic. Pace f change cntinues t increase. Ecnmic Refrm (5)

6 New ecnmy is innvatin Innvatin is ding smething differently r creating smething new Defined by the OECD in the Osl Manual: The implementatin f a new r significantly imprved prduct (gd r service) r prcess, a new marketing methd, r a new rganisatinal methd in business practices, wrkplace rganisatin r external relatins. Drives prductivity crucial t ecnmic grwth Ecnmic Refrm (6)

7 Hw shuld gvernment respnd t innvatin? What d we expect gvernment t d? Respnd t market failures? e.g. externalities, infrmatin asymmetry Give peple meaning and smething t d? Prtect individuals rights? Maintain the status qu? Shuld the new ecnmy trigger gvernment interventin? Ecnmic Refrm (7)

8 PROBLEM: Why we need regulatry principles Ecnmic Refrm (8)

9 Gvernment culture and incentives Innvatin risk > status qu risk Culture - accuntable t the public Risk averse Siled and hierarchical Labrius Incentives Intrinsic public interest Extrinsic avid embarrassment, incumbents Ecnmic Refrm (9)

10 Effect f red tape and regulatry burdens Barriers t ecnmic pprtunity and grwth, as the ecnmy and industry change these risks increase Australia is 80 th n the Wrld Ecnmic Frum s Glbal Cmpetitiveness Index fr regulatry burden Bdy Cmmnwealth Gvernment Institute f Public Affairs Delitte Access Ecnmics Estimated annual cst f red tape in Australia $65 billin $176 billin $95 billin Ecnmic Refrm (10)

11 REGULATORY PRINCIPLES Ecnmic Refrm (11)

12 Regulatry principles fr respnding t and enabling innvatin Gal Create a regulatry envirnment that attracts and enables innvatin while balancing scial, ecnmic and envirnmental interests. Outcmes Gvernment actin is targeted at achieving clear and relevant utcmes. Reduced business csts and risk. Increased innvatin and cmpetitiveness. Ecnmic Refrm (12)

13 Principle 1: Innvative OECD Actin 4: Rules and prcesses t supprt nt hinder Use new tls Identify new technlgies and prcesses Gvernment can use t imprve hw it regulates. Cnsider numerus ptins Examine a brad range f ptential respnses t better achieve desired utcmes. Ecnmic Refrm (13)

14 Principle 2: Adaptable and Flexible Make regulatin technlgy neutral The regulatry respnse t achieve the utcme is adaptable t changing business mdels and technlgies. Cnstantly catching up gvernment prcesses can be t slw t respnd t changes in technlgy. Ecnmic Refrm (14)

15 Principle 3: Cnsistent Ensure fairness and cnsistency fr entire market Create a level playing field Review the regulatins impsed n existing businesses when respnding t innvatin. Prmte cmpetitin between entrants and incumbents. Cnsider transitin issues fr incumbents. Ecnmic Refrm (15)

16 Principle 4: Evidence-based OECD Actin 2: Knwledge is pwer Mnitring Mnitr the effect f new technlgies and business mdels and the effectiveness f regulatry appraches. Gathering data Respnsibility fr cllecting data shuld be assigned t the parties that can d s mst efficiently. Ecnmic Refrm (16)

17 Principle 5: Supprted regulatrs OECD Actin 1: Peple Matter Give regulatrs capacity Capacity t assess risks psed by new technlgies, business mdels and markets. Practively advise gvernment. Facilitate internal public sectr innvatin. Ensure regulatr capability Regulatrs need the right skills and access t advice. Adequate resurcing t respnd. Ecnmic Refrm (17)

18 Principle 6: C-rdinated OECD Actin 3: Wrking tgether slves prblems Share learning Share best practice regulatry appraches t innvatin. Recgnise and build n the interdependencies between areas. Develp cllabrative regulatin Inter-jurisdictinal cllabratin cnsistency r cmpetitin? Ecnmic Refrm (18)

19 Principle 7: Respnsive Enable interim measures and stagger refrms Cnsider interim measures t facilitate innvatin, while regulatin is updated, and enable respnsive management. Examples: regulatry sandbxes, experimental trials, and prttype-pilt-prduct. Iterative management Incrprate preliminary results and feedback int nging regulatry develpment. Ecnmic Refrm (19)

20 Principle 8: Frward Lking Undertake early intelligence gathering Cntinual mnitring and scanning f the envirnment t enable practive regulatry and plicy actin. What can we see cming? Autnmus systems transprt, finance, agriculture, prgrammable r rutine tasks. Netwrk effects cnslidating data in hands. What can t we see? Lk t mega-trends : aging ppulatin, rise f Asia (e.g. India and Indnesia), increasing returns n capital. Ecnmic Refrm (20)

21 IMPLEMENTATION Hw gvernment can apply the principles Ecnmic Refrm (21)

22 Practical steps fr gvernment Incrprate principles int regulatry assessment prcesses Cmplement existing principles COAG Best Practice Regulatin Guide. OECD Guiding Principles fr Regulatry Quality and Perfrmance. Public sectr must want t change culture! Ecnmic Refrm (22)

23 Takeaways New ecnmy = innvatin Need t change culture Principles 1. Innvative 2. Adaptable and Flexible 3. Cnsistent 4. Evidence-based 5. Supprted regulatrs 6. C-rdinated 7. Respnsive 8. Frward lking Ecnmic Refrm (23)

24 DISCUSSION Ecnmic Refrm (24)