Better regulation can be achieved without resorting to statutory state regulation, which tends to be ineffective, cumbersome and poor value for money, according to a new study published by the Institute of Economic Affairs.*
In the study, Keith Boyfield, chairman of the newly launched IEA Shadow Regulatory Policy Committee, says that regulation has become the boom industry of the twenty-first century and the cost of regulation to the UK economy has been estimated at over £100 billion a year, or between 10 to 12 per cent of GDP.
Rather than rely on unwieldy and ineffective statutory regulation, the study shows that market-based regulatory mechanisms can offer a more effective means of maintaining well-regulated markets. For example, Professor Philip Booth and Terry Arthur show how stock exchanges can offer more effective oversight of securities markets than government intervention.
Andrew Brown, the Chair of the Committee of Advertising Policy, describes a new co-regulatory system that has been