Who regulates who?

This is a lazy post in that it merely draws together three recent posts made elsewhere. They have in common the question of who takes the lead on developing standards and future directions - government, industry or civil society?

The most recent concerns the future of the Kimberley Process in regulating human security and human rights issues in global diamond supply chains. Its short -- here. Concern about the KP can obscure how even if arrangements involving governments fail or fall short, it remains open for buyers, jewelers and others to set more demanding standards (and for consumers to insist on compliance). Not all the regulation that works or matters comes 'top down' from state bodies. Braithwaite and Drahos (2000) convincingly showed how historically much regulation began with guilds and industry associations, and was only subsequently incorporated as legislation -- for example, maritime safety standards were developed by marine insurers in London long before the state became involved. Of course its not that simple in regulating 'conflict' or 'blood' diamonds; for one thing, buyers and consumers are not all equally discerning when it comes to the origin of stones, and collective action problems remain.

The second post -- here -- reflected on South African industry seeking clarity from government on proposed CO2 emissions regulation. Its easy to be naive, but in the tone of some SA business leaders' recent speeches is a sense that industry is not necessarily opposed to regulation, but craves policy certainty to enable long-term transitions to a greener economy -- and the opportunities it may bring. Whether they will self-regulate beyond the minimum required by government is a different question, raising difficult issues of competitiveness for firms -- and the country.

The third post -- here -- deals with this theme only indirectly; but it did try make the point that while much analysis of prospects for growth and development in sub-Saharan Africa focus on the inadequacies of the state, much of what is positive on the continent happens despite -- not because -- of what governments do or don't do.

None of this is to suggest that we be naive about whether business can or will develop adequate social standards without education, encouragement, supervision or sanction; but I thought the three posts touched on a common idea -- government is not the only 'regulator' capable of influencing outcomes, and opportunities are missed by a mentality that waits for its lead.