Иностранные языки и языкознание
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Graduate School of International Corporate Strategy, Hitotsubashi UniversityAsian Tax and Public Policy ProgramEconomic Analysis of Regulation and Public EnterpriseREGULATION IN
Why, What and How to Regulate?
Bakhodir Mardonov IM0313February 20, 2001Recent empirical studies have showed that national indicators correspond closely to the degree of competition in telecommunications markets. Greater competition has generated greater innovation, investment and spin-offs for the economy as a whole. However, many governments have found that competition in telecommunications can bear good results only if appropriate regulatory institutions are functioning effectively. ideration of advantages and disadvantages of specific regulatory policies raises questions on why regulate, what to regulate and how to regulate.
Why Regulate Telecommunications?There are different approaches trying to answer this question, but basically they are split into two views: whether government should regulate actively or intervene only in case of “market failure”.
Public policy goals: Even though the ultimate goals are the same, the relative priority given to different goals may vary. For example, in developing countries with a limited access to telecommunications services, the policy goal to make them universally accessible is especially important. While, in developed countries, the priority goals may be to raise the efficiency of telecommunications and maintain a basic telephone service.
Market failure: General goals such as “universal accessibility” cannot be enough to justify regulatory intervention when the prevailing view relies on market forces to promote efficiency and innovations. In this case, the strongest justification takes the form of “market

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