Definition and principles of regulatory policy

Abstract

This article researches the components of regulatory policy. The core of regulatory policy is determined. The principles of its formation in the domestic economy are analyzed taking into account the developed countries’ positive experience in this area. Understanding of regulatory policy concept, its formation and implementation principles will facilitate the increase of government’s efficiency in this field, and, thereby achievement of set goals.

We have analyzed existing approaches to the definition of regulatory policy.  Having considered the lack of an integrated position to determine regulatory policy as an economic category, it is proposed to use the broad and narrow understanding of the term. Broad understanding of regulatory policy includes all forms of implementation of public policy in general, a set of directions and forms, methods of tools, that government uses to  coordinate the impact of economic activity on society. In narrow sense, regulatory policy is viewed not as a whole but differentially: as a set of government agencies that have certain powers. These powers are exercised by appropriate methods, that influence market agencies, and the methods are subject to enhancement for encouraging the development of economic activity. Narrow understanding coincides with the legal content of regulatory policy, set out in regulations.  

The proposed approach to define regulatory policy in broad and narrow sense allows to distinguish the use of the term in economic and legal areas. It is also possible to use it for the analysis of its effect on the economy in general or considering the specifics of certain sector’s of the economy.

Comparative analysis of the regulatory policy’s principles is conducted. We have summarized principles of regulatory policy which the current Ukrainian legislation contains. Domestic experts propose to apply these principles and the experience of their application abroad. It is shown that the effectiveness of regulatory policy is not determined by the number of principles, but by the presence of mechanisms to enforce these principles.