In our time, we cannot wait for hundreds of years while the rules evolve to suit our requirements; we cannot even wait decades, largely because of the speed of technological development and its social, economic and cultural consequences.

Regulation is not merely another form of government red tape. Regulation is pervasive in any western economy and is increasingly a topic of interest in developing economies. Global and national regulation is a powerful influence on business, especially in the financial sector, and is generally perceived by business as a hindrance or, at best, as a necessary evil. As rules change or new rules are made, there is a direct impact on the environment in which a business operates and sometimes on the business itself. As businesses struggle to comply with red tape, many see regulation and compliance as a threat to profitability and as a factor that discourages investment and damages competitiveness. Only crooks and cheats prosper in an unregulated or improperly regulated market and the evidence is that properly regulated industries thrive to the advantage of most, rather than a few. History shows how, if not why, this is so.

Modern society cannot exist without regulation and the international financial markets and associated institutions could not exist without a regulatory framework - we are seeing now how the global financial markets can be placed at risk by the effect of poor regulatory frameworks in one nation alone. 

Business owners and operators should take every opportunity they can to demand lawmakers enforce the practices that are already in place, not just keep restating the principles.

Paraphrasing the old adage ‘to a person with just a hammer, all problems look like nails' - to legislators and their public servants most problems need laws!

This cultural view, so deeply internalised the protagonists are often oblivious to its existence, must form the crux of any consideration of the regulatory environment. Attempts at red tape reduction tend to be either the ‘cost cutting' model or the ‘process' model when what is needed, to is not a ‘roots & branch review', to quote a well-known proclaimer of reform, but a ‘dig it out and replant anew' model - a model that establishes a more balanced line between business (especially small businesses) whose mantra prefers no government involvement ‘just get out of my way and let me create wealth', and the lawmakers and enforcers for whom rules and process to meet clearly defined (by them) ‘outputs' and ‘outcomes' are the touchstones of good governance.

This week Global Access Partners (GAP) is hosting another of its valuable gatherings of top minds - a Congress on Regulatory Affairs - "Opportunities for Business".