Regulatory Management: Weaknesses and Potential for Improvement

Designing and implementing a regulatory management system (RMS) that both promotes a country’s socio-economic development and is perceived as legitimate is a fundamental aspect of good governance. This analytical study reviews historical and contemporary theoretical works on the interaction between economic, institutional, and social factors of regulation, with a particular focus on developing countries. It argues that, alongside economic factors, both formal and informal institutional elements must be considered when designing and implementing an RMS – an issue of even greater significance for developing economies . The purpose of the study is to identify key elements and constraints in implementing regulatory governance, including those specific to developing countries, and to situate these within broader governance and management contexts. The research uses both quantitative and qualitative methods, resulting in the ability to triangulate the results. As a result, it proposes an analytical framework that integrates theoretical and practical insights to highlight the weaknesses and potential for improvement in designing and implementing effective regulatory management systems. The research outcome , the confirmation of including formal and informal institutional factors, beyond the purely economic factors, benefits both theory of regulation as well as the regulatory management practitioners.