Good regulation helps economies succeed. It sets the “rules of the game,” aligning business practices with societal values and goals. It also gives businesses certainty to plan their operations long term, rewarding innovation and job creation.

Good regulation can enable technologies like Artificial Intelligence (AI) to flourish, while managing its risks and ensuring  ethical and transparent decision making. It can also encourage sustainable behaviours by businesses and consumers that benefit the environment and promotes green growth rather than locking in polluting fuels and practices. 

Regulation is a primarily a tool of government, making trust in our public institutions an essential ingredient for success. If people do not trust governments, then it will be difficult to ensure businesses and citizens follow the rules. This is heightened by growing fiscal pressures, which constrain the use of other policy tools like spending and taxation, and by the urgent demands for action on pressing problems like stalling productivity, the climate crisis and rising cost of living.

With 51% of people in OECD countries expressing trust in their political leaders in 2021, focusing on a results-oriented regulatory approach is needed more than ever to maintain and restore trust in government.  Well-designed, transparent and effectively enforced rules can demonstrate the dividends of government and shore up support for elected representatives, ultimately enhancing stability and prosperity.