1 Sophia Stento Dr. Sherry Hu Summer Internship 12 July 2023 The United States’ Role In The Application of Regulatory Policy The United States’ sway in global policy has never been in question. Historically, the country has had immense influence on foreign policy, emerging as an economic superpower that currently holds the highest global Gross Domestic Product. The economic and political record of the United States has illustrated the need for regulation to ensure ethical administration. Acting within the confines of their own government and economic systems, most countries recognize the need for regulations, or at least experience the effects of their absence. The presence of these laws is a huge contributor to effective governance in wealthy countries, but far less prevalent, in the most vulnerable of countries. The United States must set the standard of regulation; utilizing its economic fortitude and experiences to extend the reach of regulatory policy. More broadly, regulatory policy refers to standards or requirements put forth by the government to help achieve a desired outcome, the key distinction being either economic or social. Economic regulation references entry and price controls, meaning who can enter what industry and what prices can be charged for their goods or services. Social regulation encompasses the rules set for the ways in which businesses or individuals conduct their commerce, with consideration of externalities; the consequence and/or costs of a business's actions on third parties. With an ever changing society, the needs of the people and their 2 economy have changed. The historical record, contemporary culture, economists, politicians, etc. all work together, providing insight that guides current regulations and restrictions. As a result, this sub-division of legislation has become critical in ensuring lawful citizenship to countless people all over the world. Governments and economies are sometimes subjected to international analysis and assessment by oversight institutions, which have compiled comprehensive records of global government actions. This record allows for greater understanding of what is and is not working policy-wise, and where. Accessing, spreading, and urging the application of knowledge obtained from these institutions is a task better suited for a government with more expansive resources and influence such as the United States’, as can be seen when juxtapositioned to Colombia, a much less affluent country navigating the aftermath of a civil conflict spanning nearly six decades. Comparing these countries through The Organization For Economic Cooperation and Development's(OECD) Regulatory Policy Outlook 2021 offers evidence of the successes of regulatory policy. The OECD conducts an international survey, utilizing the results to assess and analyze the implications of regulatory policy on the economy. The Regulatory Impact Assessment or RIA is of particular interest. This composite indicator aims to evaluate effects of current and prospective regulatory policies and their non-regulatory counterparts. The RIA consists of four categories; 1)Systematic Adoption, 2) Methodology, 3) Oversight and Quality Control, and 4) Transparency. According to Indicators of Regulatory Policy and Governance (iREG): United States, 2021 , the United States scored .8 in Systematic Adoption, a .7 in Methodology, a .5 in Oversight and Quality Control, and .7 in Transparency(OECD, Country 3 Profiles: United States). On the contrary, Colombia scored much lower with a .3 in Systematic Adoption, a.2 in Methodology, and .2 in Transparency, not posting a score in Oversight and Quality Control(OECD, Country Profiles: Colombia). To fully understand these numbers, we must understand the measures with which they are associated. Systematic Adoption speaks to the “...formal requirements and how often these requirements are conducted in practice”, Methodology refers to “...the methods used in each area...”, Oversight and Quality Control “records the role of oversight bodies and and publically available evaluations'', and Transparency, which is responsible for “...record[ing] information from the questions that relate to the principle of open government’(OECD, Annex A. Reader’s Guide). The scores earned by the United States compared to Colombia supports that our government has a much larger platform for this kind of policy, being that these scores are essentially crediting the capacity and effectiveness of a country's existing regulatory policy. Further, the scores suggest that implementation’s enduring effects are more widely experienced in wealthier countries. These are the same countries that can afford better public health services, more expansive social security etc. The discrepancy in scores incites inquiry about the differing experiences of American and Colombian citizenship; bringing us to the World Justice Project’s Rule of Law Index for 2021. The WJP Rule of Law Index is an international measurement on the rule of the law. In more simple terms, the index monitors accountability in practice of the law. The index is released annually and composed of eight factors, four of interest. The Open Government, Fundamental Rights, Civil Justice, and Regulatory Enforcement factors all speak to the experiences of the people within the jurisdiction. Open government encompasses just that, the openness of the government with their people. This factor is somewhat of an outlier here, but is worth seeing 4 given that the Policy Outlook discusses Transparency as well. The Fundamental Rights factor speaks to the upholdment of basic human rights, with the Civil Justice factor looking specifically at the upholdment of civil rights. The most telling factor, Regulatory Enforcement oversees the implementation and enforcement of government regulations. Colombia scored 35/139 in the Open Government Factor, an 87/139 in fundamental rights and in civil justice, and 91/139. Lastly, a 62/139 in regulatory enforcement. The United States, on the other hand, received a 16/139 in Open Government, a 42/139 in Fundamental Rights, a 22/139 in Civil Justice, and a 22/139 in the Regulatory Enforcement factor(WJP, Rule of Law Index) . On the index, greater adherence to the rule of the law results in a lesser score. Colombia doesn’t place nearly as well as the United States, much like in the Policy Outlook. Colombia, who possesses the smaller political platform and economy, is unsurprisingly the one scoring higher here. The numbers in and of themselves are not as important as the picture they paint. The OECD’s Outlook outlines the levels of implementation and success of regulatory policies, revealing strong economies akin to the United States’ as leaders in the implementation of regulatory policy. Positive and negative effects of these policies aside, it’s apparent economically stronger countries perform better. The trend seems to carry over into the index, where the countries with larger economies and more vast regulatory policy receive lower scores and rank higher. Countries experiencing the positive impacts of regulatory policy are all proof of why it exists, but that is seemingly not enough. Globally, we face pandemics, climate disasters, etc. The effects are felt at every corner of the world, yet not every country is setting and following standards to improve the circumstances. 5 The United States is the richest country in the world, providing a unique position in the global playing field. It must be acknowledged that the United States’ enterprise was not obtained entirely ethically, nor has it been handled as such. The legacy of atrocities committed throughout colonization, coupled with current injustices, solidifies that the United States and its systems are far from perfect. Not every policy put into place is effective, nor is every right protected. However, wealth has yielded the country great political power and influence. As living proof of its’ successes, America must drive a greater application of regulatory policy for all global citizens. Works Cited OECD. OECD Regulatory Policy Outlook 2021 OECD Publishing , 2021 WJP. “WJP Rule of Law Index.” Worldjusticeproject.org , 26 Oct.2022,https://worldjusticeproject.org/rule-of-law-index/factors/2021/Colombia/Regula tory%20Enforcement/. Accessed 3 Aug.2023.