Human cost of enforcing regulations with solutions

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There has been a long recognised positive relation between income levels and measures of human welfare. Evidence exists of linking distribution of income and regulations changing the income levels of higher income households.   

Regulations are salient feature of a well functioning society. Such regulations brings in both at economic and human costs which underscores the need for judicious application of carefully designed regulations. Failure to maintain this realty results into huge buildup of red tape both at Centre and State levels. These factors becomes associated to poverty, income inequality and immortality. Both Centre and States should carry out serious and complete compaigns to identify and eliminate such costly regulations and impose regulatory budgetary rules thereby empowering state agencies to regularly re-evaluate and eliminate such poorly performing regulations before enforcing new regulations. The results will be encouraging and will certainly show a path which will limit the effects of the unintended costs of regulations on low-income population.  

Regulations should be used only as a last resort and be designed in a perfect order so as to achueve social objectives, minimising human and economic costs. Moreover, it should be ensured that the estimated benefits of new regulations should exceed their costs. This principle will eliminate red tape and costly rules which serves only the needs of special interests and no benefits to the society.  

The end of second world war signalled a change in the international community's attitude towards human rights. The aceptance of  human right norms into political society and behaviour is the most powerful method of enforcement. The absence of effective follow-up mechanisms shows the power of peer pressure in enforcing the human rights.

The costs of regulation are to be borne by the firms that must comply with them. It should be categorised in two parts operational costs and compliance risks. The actions on this be divided into three parts - Corrective actions, Sanctions and Supervisory actions.    


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