Self-Regulation is an Oxymoron

You know the drill by now: aircraft safety, food safety, water safety, bridge safety, nuclear safety, and so forth. The public (all of us), as users and funders/purchasers of these critical goods and services, rely on some certainty of safety, however it may be enforced. Market forces in many cases are sufficient to incite producers of those goods and services to take safety seriously, but there are cases where that is insufficient. That is where regulation comes in.

You cannot regulate yourself. Sure, if you use a loose dictionary definition of regulation it is possible - just keep an eye on yourself to confirm you're performing as you should to some self-stated set of criteria, and do it diligently and honestly. In the commercial realm, regulation requires a more stringent definition where personal safety is involved. Regulation should at least include:

• Performance standards and metrics to reach a desired outcome. These should be based on sound scientific methods of analysis and evidence.
• Structural separation between the regulator and the regulated. The intent is to avoid common commercial or other interests that would stain the impartiality of the regulator.
• Accountability of the regulator and the regulated. As it is often said: a contract is only as strong as the penalty clause. There must be consequences for failure to meet performance standards by all involved in the process.
• Process oversight. Yes, even regulators need to be regulated. The entire regulation process should be defined and monitored by an accountable industry or professional body, or a government agency protected from political interference.

As I read about the Maple Leaf saga, lack of action of recommendations resulting from the Swissair disaster, and other recent stories, I notice how one or more of these fundamentals of regulations have been violated. There is room for improvement, along with constant vigilance to reduce the frequency of relapses.

Like it or not, politicians set the tone so it is up to us to hold them accountable. Investigative reporting serves to shine a light on things we might not otherwise be aware of, for which we ought to be grateful since those who would benefit from a failure of effective regulation thrive in the shadows. If the public fails to act on these revelations we can expect more of the same in future. Ultimately the responsibility is ours alone.