Regulatory failure occurs when agencies do not effectively fulfill their regulatory mandate, whether due to regulatory capture, lack of resources, expertise gaps, or institutional design flaws. These failures can lead to preventable harm, environmental damage, financial crises, or other negative outcomes.
Regulatory failure can have catastrophic consequences, as seen in financial crises, environmental disasters, and safety failures that harm millions of people.
People think regulatory failure means no regulation. Sometimes failure occurs despite having regulations, due to poor implementation or capture.
Regulatory failure can have catastrophic consequences, as seen in financial crises, environmental disasters, and safety failures that harm millions of people.
People think regulatory failure means no regulation. Sometimes failure occurs despite having regulations, due to poor implementation or capture.