OECD Public Governance’s Post

🌐𝗛𝗼𝘄 𝗚𝗹𝗼𝗯𝗮𝗹 𝗘𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝗪𝗶𝗹𝗹 𝗔𝗳𝗳𝗲𝗰𝘁 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 By Jake Plenderleith, 22 July 2024 2024 is the year of the ballot box, with major elections already held in several countries, including India, Russia, and France, and more to come. As new governments come into power, their policies will inevitably shape the landscape of regulation and compliance across the globe. 👀𝗞𝗲𝘆 𝗶𝘀𝘀𝘂𝗲𝘀 𝘁𝗼 𝘄𝗮𝘁𝗰𝗵 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: •  🚫𝗦𝗮𝗻𝗰𝘁𝗶𝗼𝗻𝘀: New leaders will likely revisit sanctions, particularly in relation to the ongoing conflict in Ukraine. The impact of these decisions will be felt far beyond their borders. • 🌈𝗘𝗦𝗚: Despite facing some setbacks, Environmental, Social, and Governance (ESG) issues remain critical, especially as countries like India move towards more consistent legislation. •  🤖AI Regulation: With the EU's new Artificial Intelligence Act, the regulation of AI is becoming a global priority. Other nations are expected to follow suit, significantly influencing innovation and compliance. The UK's recent shift in political power also brings potential changes in regulatory approaches, particularly in financial services, where Labour has hinted at both regulatory consolidation and easing. As governments worldwide navigate economic challenges, the balance between regulation and growth will be a crucial area for compliance professionals to monitor. 𝗖𝗵𝗮𝗻𝗴𝗲 𝗮𝗻𝗱 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗶𝘁𝘆 While elections often promise change, many global leaders remain in power, reflecting both a desire for stability and, perhaps, a resistance to significant shifts. For those in compliance, this means preparing for both continuity and potential upheaval in the regulatory environment. 𝗔𝘁 𝗦𝗽𝗮𝗿𝘁𝗮 𝗟𝗶𝗺𝗶𝘁𝗲𝗱, 𝘄𝗲'𝗿𝗲 𝗵𝗲𝗿𝗲 𝘁𝗼 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝗻𝗮𝘃𝗶𝗴𝗮𝘁𝗲 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗻𝗲𝗲𝗱𝘀 𝗶𝗻 𝘁𝗵𝗶𝘀 𝗲𝘃𝗲𝗿-𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝘄𝗼𝗿𝗹𝗱. 𝗢𝘂𝗿 𝘁𝗲𝗮𝗺 𝗼𝗳 𝗲𝘅𝗽𝗲𝗿𝘁𝘀 𝗶𝘀 𝗿𝗲𝗮𝗱𝘆 𝘁𝗼 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝗻 𝗮𝗱𝗮𝗽𝘁𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗲 𝗲𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗹𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲. #Compliance #Regulation #GlobalElections #ESG #AI #Sanctions #FinancialServices #SpartaLimited🌈🌈

𝗘𝗦𝗚: 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗮𝗿𝗲𝗮 𝗼𝗳 𝘁𝗲𝗻𝘀𝗶𝗼𝗻   🌍 The history of trade from the Silk Road to globalisation shows: 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗲𝗻𝗮𝗯𝗹𝗲𝘀 𝗴𝗿𝗼𝘄𝘁𝗵, 𝗰𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝘀 𝗹𝗲𝗮𝗱 𝘁𝗼 𝗳𝗿𝗮𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 🌍 Geopolitical tensions encourage the 𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗯𝗹𝗼𝗰𝘀 of countries with similar political and economic preferences and fragment markets 🌍 Multilateral, 𝗶𝗻𝘁𝗲𝗿𝗴𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁𝗮𝗹 𝗮𝗰𝘁𝗶𝗼𝗻 𝗶𝘀 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝘁𝗼 𝗻𝗲𝘁𝘄𝗼𝗿𝗸𝘀 𝗼𝗳 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗮𝗰𝘁𝗼𝗿𝘀 🌍 The most frequently used instruments are requirements regarding trade, investment, taxation, competition, data protection, sanctions and finance 🌍 ESG regulation offers opportunities but also increases tensions due to (𝗴𝗹𝗼𝗯𝗮𝗹𝗹𝘆) 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝗻𝗴 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 𝗮𝗻𝗱 𝘃𝗮𝗹𝘂𝗲𝘀 🌍 Companies face the dilemma of reconciling 𝗹𝗼𝗰𝗮𝗹 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 with geopolitical/economic trends and their own strategy, and 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗰𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝗶𝗻𝗴 𝗴𝗼𝗮𝗹𝘀 🌍 𝗠𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴 𝗼𝗳 𝗴𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗿𝗶𝘀𝗸𝘀 is often too narrow, hindering effective management   Many thanks to KPMG Law, and in particular to Dr. Nikolaus Vincent Manthey and Anne-Kathrin Gillig for the great hospitality and partnership at the 𝗘𝗦𝗚 𝗦𝘂𝗺𝗺𝗶𝘁 Bundesverband der Unternehmensjuristinnen und Unternehmensjuristen e.V. (BUJ), Dr. Patrick Otto, and to all speakers, co-panelists and participants for the valuable contributions and discussions.   The content of the lively debates clearly shows that we are in the midst of an historically unprecedented shift and that "lying low" is not an option. I look forward to further discussions!

A study by the World Bank found that countries with higher regulatory burdens tend to have lower rates of innovation and slower economic growth.  In the technology industry, stringent data privacy regulations like the GDPR in the EU have increased compliance costs for companies, potentially diverting resources away from innovation.  According to the Heritage Foundation’s Index of Economic Freedom, countries with fewer regulatory restrictions generally have higher economic freedom scores and better economic performance.  In the energy sector, heavy regulations on fossil fuels lead to higher energy prices and reduced competitiveness for industries reliant on cheap energy.  That is half the story. The OECD reports that well-designed regulations can correct market failures and lead to more efficient and equitable outcomes.  Environmental regulations, such as carbon pricing, internalise the external costs of pollution, encouraging companies to reduce their carbon footprint and invest in cleaner technologies.  The IMF highlights that financial regulations, such as those implemented after the 2008 financial crisis, have strengthened the resilience of the global financial system.  The Dodd-Frank Act in the United States introduced stricter oversight of financial institutions, which has helped prevent some of the risky behaviour that led to the financial crisis. Finding the right balance between regulation and market freedom is crucial.  Countries like Sweden and Denmark combine high levels of economic freedom with strong social safety nets and environmental regulations, demonstrating that regulation and capitalism can coexist effectively.  Known for its business-friendly environment, Singapore maintains a high level of regulatory efficiency while ensuring robust protections for consumers and the environment.  While excessive regulation can hinder economic growth and innovation, well-designed regulations are essential for addressing market failures, ensuring stability, and promoting sustainable practices.  The key is to strike a balance that fosters competition and innovation while protecting consumers and the environment. (Continued) Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Understanding and measuring the #statecapture environment of a country is very vital to assessing possible paths towards solutions. ⚖🌍 📈 The #StateCaptureIndex and dataset by Daniel Kaufmann provide valuable insights into the evolution of state capture globally over the past three decades👉🏽 https://lnkd.in/dUPjkqUy  🕵️♂️Dani also highlighted the importance of measuring state capture and how we can move from research to action in tackling this global threat 👉🏽  https://lnkd.in/dQfzipd8 📌 Stay tuned for an interactive data visualization of the #StateCaptureIndex on our upcoming portal later this summer! 👁️🗨️ 🔎The #StateCaptureIndex research article (https://lnkd.in/dJ5vm5gq) forms a key input to the work of the Governance Action Hub, in our pursuit of audacity in governance reforms. A state capture diagnostic lens, using various strands of governance data informs the Hub’s modus operandi in countries, the potential it seeks to tap for multi-stakeholder alliances for collective action, as well as the identification of priority actions and reforms that are attainable and impactful.  #AntiCorruption #StateCaptureMatters #CollectiveAction #Democracy

I'm pleased to share our quarterly APCO Geopolitical Radar which forecasts what global businesses will can expect to encounter in the concluding months of 2024.   The Radar offers observations and insights to inform decisions. In our latest issue, we cover:   The rising trend of “securitized globalization,” in which governments are increasingly prioritizing national security and economic resilience using tariffs, sanctions, incentives, and other measures to reduce reliance on geopolitical competitors. Voters in Europe, India, and the U.S. are demonstrating growing dissatisfaction with the status quo, potentially prefacing acute and prolonged periods of disruption. The Middle East remains on edge with a heightened security situation between Israel and Iran's proxies. As key regional players try to mitigate the economic fallout of the conflict, they also face challenges navigating the growing implications of U.S.-China competition and a rising sense of global multipolarity. The upcoming U.S. election will be globally consequential and is top of mind for political and business leaders everywhere. Its outcome—which may not be settled until early 2025—will have profound implications for international economic, social, defense, and climate policies for the next decade.   Don't hesitate to connect with reach out to me discuss your specific interests more in depth. This report, prior editions and sign-up for updates are available at the APCO website. https://lnkd.in/dHBQ3T_p And a special thanks to the more than a dozen APCO colleagues who worked with me on bringing this product to print. #geopolitics #geopoliticalrisk #multipolarity #security #economy #Globalization #SuperElectionYear #Elections

A study by the World Bank found that countries with higher regulatory burdens tend to have lower rates of innovation and slower economic growth.  In the technology industry, stringent data privacy regulations like the GDPR in the EU have increased compliance costs for companies, potentially diverting resources away from innovation.  According to the Heritage Foundation’s Index of Economic Freedom, countries with fewer regulatory restrictions generally have higher economic freedom scores and better economic performance.  In the energy sector, heavy regulations on fossil fuels lead to higher energy prices and reduced competitiveness for industries reliant on cheap energy.  That is half the story. The OECD reports that well-designed regulations can correct market failures and lead to more efficient and equitable outcomes.  Environmental regulations, such as carbon pricing, internalise the external costs of pollution, encouraging companies to reduce their carbon footprint and invest in cleaner technologies.  The IMF highlights that financial regulations, such as those implemented after the 2008 financial crisis, have strengthened the resilience of the global financial system.  The Dodd-Frank Act in the United States introduced stricter oversight of financial institutions, which has helped prevent some of the risky behaviour that led to the financial crisis. Finding the right balance between regulation and market freedom is crucial.  Countries like Sweden and Denmark combine high levels of economic freedom with strong social safety nets and environmental regulations, demonstrating that regulation and capitalism can coexist effectively.  Known for its business-friendly environment, Singapore maintains a high level of regulatory efficiency while ensuring robust protections for consumers and the environment.  While excessive regulation can hinder economic growth and innovation, well-designed regulations are essential for addressing market failures, ensuring stability, and promoting sustainable practices.  The key is to strike a balance that fosters competition and innovation while protecting consumers and the environment. (Continued) Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

A study by the World Bank found that countries with higher regulatory burdens tend to have lower rates of innovation and slower economic growth.  In the technology industry, stringent data privacy regulations like the GDPR in the EU have increased compliance costs for companies, potentially diverting resources away from innovation.  According to the Heritage Foundation’s Index of Economic Freedom, countries with fewer regulatory restrictions generally have higher economic freedom scores and better economic performance.  In the energy sector, heavy regulations on fossil fuels lead to higher energy prices and reduced competitiveness for industries reliant on cheap energy.  That is half the story. The OECD reports that well-designed regulations can correct market failures and lead to more efficient and equitable outcomes.  Environmental regulations, such as carbon pricing, internalise the external costs of pollution, encouraging companies to reduce their carbon footprint and invest in cleaner technologies.  The IMF highlights that financial regulations, such as those implemented after the 2008 financial crisis, have strengthened the resilience of the global financial system.  The Dodd-Frank Act in the United States introduced stricter oversight of financial institutions, which has helped prevent some of the risky behaviour that led to the financial crisis. Finding the right balance between regulation and market freedom is crucial.  Countries like Sweden and Denmark combine high levels of economic freedom with strong social safety nets and environmental regulations, demonstrating that regulation and capitalism can coexist effectively.  Known for its business-friendly environment, Singapore maintains a high level of regulatory efficiency while ensuring robust protections for consumers and the environment.  While excessive regulation can hinder economic growth and innovation, well-designed regulations are essential for addressing market failures, ensuring stability, and promoting sustainable practices.  The key is to strike a balance that fosters competition and innovation while protecting consumers and the environment. (Continued) Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

Enhancing Global Governance in a Fragmented WorldProspects, Issues, and the Role of China Open access https://lnkd.in/dJwPJg7t

In a word of increasing polarisation, it’s important to build shared international approaches to regulatory systems. The UNECE: Working Party on Regulatory Cooperation and Standardization Policies (WP.6) has just published the latest in its basics series, The Basics of Risk Management in Trade. I am so proud to have worked on this guide with world-class experts, to have presented it in Geneva in July, and to be one of its editors. This collection of essays presents key aspects of quality infrastructure, technical regulations, product safety, market surveillance, inspections and conformity assessment. It also includes essays on emerging new issues including the transition towards a circular economy, AI systems, and gender considerations. Alongside the WP.6 guide Basics of Quality Infrastructure in Trade, it’s essential reading for all those working in #productsafety, #AI, #trade and international #regulation. The guide includes: 🔷 Core concepts of risk management in regulatory systems 🔹Risk management in regulation and regulatory reform 🔹Risk-based market surveillance in practice 🔹Risk management in border clearance 🔹Risk management in conformity assessment 🔹Integrated risk management in border control 🔹Sector risk and business risk in risk-based inspection systems 🔷 Risk management in businesses 🔹Integrating regulatory risk into a business’ risk management system 🔹Navigating risks in the international supply chain: safeguarding global trade 🔹Building risk competence 🔷 Emerging issues 🔹The role of risk-based regulations in advancing the transition towards circular economy 🔹Evaluating residual risk of AI systems: Ensuring safety and regulatory compliance 🔹Gender considerations for risk management in regulatory systems 🔹The example of New Zealand's risk engine #UNECE WP.6 has produced a number of accessible, insightful and practical publications on international trade and regulatory systems. 👆 You can find out more on the WP.6 website: https://lnkd.in/eBua7CMd I am so proud to be a part of this Working Party, and to have contributed to this guide. Huge thanks to Director Elisabeth Türk, Lance THOMPSON, Secretary of WP.6, and the whole WP.6 Secretariat for inviting me to support this vitally important work. #standards #qualityinfrastructure #technology #gender #aiethics #internationalcooperation 

From the Blogosphere: The 'Brussels effect' refers to Europe’s ability to wield power in regulating global markets through its legal institutions and standards, acting in effect as a gatekeeper in the global digital economy. In this piece, Authors Patricia (Dr. Jur) Boshe & Carolina Goberna Caride (Technology & Reglation Journal/Universität Passau) explore this concept and its impact on the developing world... #techREG #technology #data #digitaleconomy #globalmarkets #regulation #brussels #latinamerica #africa