Justification for intervention for economic regulatory efforts arises out of alleged inability of the marketplace to deal with particular structural problems. Of course, details of any program often reflect political force, not reasoned argument. Yet thoughtful justification is still needed when programs are evaluated.[1]
The case of water reform in Chile is an interesting one. First of all, it allows us to think about a situation where regulatory reforms face political decision-making through the outcome of proposed legislation. Secondly, the case doesn’t deal with lack of political commitment, but rather involves a situation where the government now faces an important question of passing a legislation that directly affects their households – the main question is not whether to privatize, but how to regulate what will be privatized. Finally, it shows us the importance of having a credible and independent regulatory framework in order to have effective reforms.
Despite the successful accomplishment of SENDOS, government had few concerns it was facing with publicly owned companies:
- It had to restructure the public entity that was responsible for regulating quality while providing the service. SENDOS did not have the authority for economic regulation and control of tariffs which was under the Ministry of Economy. Only after the reforms a regulatory agency, SISS was established and given a right, among others, to set tariffs and audit companies. But even then, it was constrained it its ability due to much dependency on the government.
- The regulatory system did not provide the government with credible checks and balances system. Besides defining a geographic area the company was obliged to serve, a lot was unclear including indefinite duration of concessions, giving companies the right to transfer or sub-contract to another provider which could be revoked by the government for non-compliance with procedures for revocation that were not spelled out. This added to the next issue of financing of water utilities.
- The government heavily depended on appropriations from national budget and loans. Because of the existence of insufficient tariffs to cover operating costs, government had to bring changes in management and the structure of regulation separating the quality and tariff regulatory functions from those of service provision. Sewerage treatment needed significant investments in water treatment especially in metropolitan area Santiago. Although three new water treatment plants were planned to be constructed under BOT with EMOS, targets of treating 100 percent of all wastewater by 2005 set by the Chilean administration did not seem realistic given an increase (up to 80 percent) in the amount of funding now needed for annual investment.
Instead of the current administration making a swift and decisive action to deal with these insolvent institutions, there were many bureaucratic attempts to delay action so that the problems would not become a polit...
“the exercise of that authority is curbed and shaped by the concern of government officials for its possible adverse effects of business, since adverse effects can cause unemployment and other consequences that government officials are unwilling to accept. In other areas of public policy, the authority of government is again curbed and shaped by concern for possible adverse effects of business” (Lindblom page 178).
This includes referencing many different acronyms such as, FTAA, NAFTA, GTAA and WWF. FTAA, NAFTA, and GTAA are the villains of this story. Simply put, the privatization of water would end socioeconomic turmoil and dehydration worldwide. First, let me explain what privatization and commodification of water actually refers to. Privatization is the transfer of ownership from a local company to a private economic body.
Many businesses used this new process to raise the price of their competitors. They did this by putting constraints on entry restrictions (Woods 1986). At the state level, other laws were put in place to support the Food and Drug Act mainly to help local and area producers who were and would be facing new nat...
Fact: Arizona is in a 10-year drought. Fact: The city of Phoenix has a water problem that has nothing to do with lack thereof. A hundred years ago or more humans would just drink from a river or stream, but today we need purified, cleansed, and filter water. We do, as a state have a water treatment system in place but the faculties periodically need maintenance and must be shut down to receive it. The Water Department and their puppet master Frank Fairbanks the city mangers have been playing Russian roulette with the citizen of Phoenix. The bet you ask, will the shut down of facilities due to maintenance leave the citizens of Phoenix with a contaminated water system. We learn the answer to that question on the 25 of January the city council and water department both lost that bet. The water supply was contaminated, water had to be boiled to make in safe and long showers were not advisable. How can we as voters keep this from happening again? The short answer is building another water treatment facility, for the details read on.
Miron, J. (2010). The case against the fiscal stimulus. Harvard Journal of Law and Public Policy, 33(2), 519-529. Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/347581655?accountid=28180
listened to and has had some if not all of its aims met and autonomy
Government intervention was and is still necessary to remedy the inequities that evolved from economic liberalism. Antitrust laws were deemed to prevent undermining competition of monopolies and cartels, labor laws to protect rights of workers; public utility regulations to prevent consumer exploitation, food drug laws were designed to protect health of the people, antipollution measures to preserve our environment, safety regulations enforced to protect workers from injury and socioeconomic legislation to promote the common good.
In developing a policy people need to recognize a problem, the concern can be of natural disaster, unsafe workplace, or the cost of medical insurance; all these function as distressers to people. To take control of the problem, the society needs to recognize that the government can and should attain to the problem and solve the public’s concern (N.A., 2015). The policymaking process starts off with Policy Formulation Phase which consists of the critical first step in policymaking which is Agenda setting; this process describes the steps by which particular problems, possible solutions and political circumstances emerge (Longest, 2010). The problems as previously stated are society concerns of natural disaster, unsafe workplace, and the cost of medical insurance, to name a few. As a society initiates a problem, there should be a possible solution or alternative solutions to move the processes into Political Circumstances. In the process of a problem and a solution being finalized, it will not be sufficient en...
Grillo, I. (2009, April 11). Dry Taps in Mexico City: A Water Crisis Gets Worse. Retrieved January 2014, from Time: http://content.time.com/time/world/article/0,8599,1890623,00.html
Each policy has its own importance and individual purpose but we see Regulatory as the most important. Regulatory effects next to every American and the goal of Regulatory policies is to protect Americans from next to everything. Unlike costly Redistributive policies, or small scale Distributive policies Regulatory policies stand out as the ones that do the most good for the largest amount of Americans.
To some price regulation seems to offer the vision of a free lunch by checking the monopolistic power of health care providers. To others, it offers a convenient way to lower the predicted budgetary cost of entitlement spending. A third motive seems to be a longing to redistribute resources to patients deemed needier.
Post bureaucracy does constitute and advance on bureaucratic organization because it is the answer to the flaws of the bureaucratic system. Post-bureaucracy was aimed to fix the issues with the bureaucratic system. An important feature of post bureaucracy is Trust because it has a lot of advantages. Though it can be costly for the business. Trust refers to a lack of discipline as employees are motivated to do well for the organization. By implying rules it could prove negative for the organizations relationship with its employees and customers. Trust in post bureaucracy is designed so that stakeholders of the organization feel as if they are a vital part and essential to that organizations function. Trust is used to the ensure happiness of all the people related to the organization. A successful occurrence of this is at Homebase where the managers allow staff to issue discounts to customers when appropriate. This trust could easily be betrayed and could be misused and cause Homebase a lot of financial loss if the staff used this to their own advantage. A decline that has been largely attributed to piracy is websites that have illegal movie downloading which lead to a decrease in sales mention veronica mars movie. It is evident from these figures that the ability to download copyrighted material is being abused, and the confidence of organizations has been broken. This conveys that the trust aspect of post bureaucracy is inconsistent.
Over all the appropriate role of government has always been an argument discussing whether it is actually helping our economy or is the government gaining too much power over the markets. However the economy could not prosper without the actions imposed to assist in diffusing the power over the markets and regulating as well as enforcing the law in order for things to done in a beneficial way to both the consumers and the markets.
One main causes of water scarcity is water mismanagement worldwide. Water mismanagement has become a crisis of governance that will impact heavily ...