Why we need more regulation, not less

Everybody complains about regulation. Regulation is criticised as a restriction of one’s freedom, of one’s capacity to innovate and exploit new opportunities. This discourse is frequent among ordinary citizens. It is a leitmotiv of businesses of all sizes. The last avatar of this regulation-bashing trend is the REFIT programme of the European Union, based on the work of the “High Level Group on Administrative Burdens” chaired by former conservative (CSU) Bavarian Minister-President Edmund Stoiber (final report “Cutting red tape in Europe”, July 2014, available here).

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A cause of “populism”: the mismatch between the scale of political action and that of underlying phenomena

Let’s take “populists” seriously. Let’s listen to them. They want to “take control back”. They feel that democratic institutions at national scale have lost the capacity to act on the collective future of the population.  My argument is: they are right in this statement – but wrong in their solutions.

What are the important political decisions? Those addressing large-scale, long-term issues, such as global warming, international trade, or the taxation of multi-national corporations. Where are they taken? In the secrecy and unaccountability of inter-governmental negotiations, in the United Nations, bi-lateral negotiations of free trade agreements, in the G20 or in the Council of the European Union.

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