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Wednesday, December 21, 2011

Good and bad regulations

Some people have the idea that all regulations are bad - they add to cost and cause trouble for the ordinary people. This is the propaganda of some people, most notably the Republican politicians in America - they argue that Government is bad and should be kept as small as possible.

If we study the issues carefully, we will realize that the propaganda is flawed. What will happen to our society, if there are no laws and regulations, if every person can do what they want, if the powerful can bully the weak and get away with it, if people can cheat other people of their money?

We do need laws to identify what is acceptable and unacceptable behaviour, what is lawful and not lawful. If the Government and the law makers fail to carry out their duty, society must surely become chaotic and uncertain. People will have to take costly measures to protect their personal interest. This may be more costly, than for the measures to be taken collectively by the Government or behalf of the citizens.

Certainly, there are useless and wasteful regulations that do not add value and increase the cost and create wasteful bureaucracy. We see them all the time. The bureaucrats justify them on flimsy grounds, such as "security" and "privacy".

We should not create or continue the useless measures blindly. We should examine, from time to time, the cost and benefit of the measures, and look for more practical solutions. Even if the solution involves some risk, we may have to accept the risk, if the risk is remote and the cost of preventing it is excessive. Judgement has to be made.

I want to point out that there is a difference between good and bad regulations, and that judgement has to be made by the people in charge. It is often a balance between the cost and benefits - a need to get the facts and use the right moral values to make a decision.  It would be wrong to blindly state that all regulations are necessary, or that they are bad.

What I fear for Singapore is that the people in charge are not taking the responsibility to make the judgement, on the grounds that it can be left to the market. The unwillingness to accept responsibility, to have an open mind, to discuss with the affected people - have now become the prevailing culture in Singapore.

Please share your views on this matter.

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