Alok Pal Jain, K. Praveena, R J Anandhi, Sandeep Kumar ¡ 6 authors
Blockchain and Machine Learning integration has changed the area of Regulatory Technology (RegTech), offering automated compliance solutions for difficult regulatory issues. By combining the benefits of blockchain technology with machine learning algorithms, this article introduces a unique Compliance Assurance Framework utilizing BlockchainEnhanced Machine Learning (CAF-BEML) to improve the effectiveness and trustworthiness of compliance procedures. The Blockchain-Enhanced Compliance Data Verification Algorithm (BCDVA), the Predictive Regulatory Risk Assessment Algorithm (PRRA), and the Secure Compliance Audit Trail Algorithm (SCATA) are the three central algorithms in the proposed framework, and they work together to guarantee data authenticity, forecast potential threats, and generate clear audit trails, all of which contribute to a robust regulatory ecosystem. The suggested method's effectiveness and superiority over current conventional approaches are proved, and its potential to change compliance management in numerous industries is emphasized via this in-depth study and comparison.
This article explores the ethical dilemmas propelled by a significant shift in the allocation of trust and intelligence due to blockchain technology and AI, resulting in a notable decrease in transaction costs. The ethical and political implications of democratizing the resulting productivity gains are noteworthy, and while the pie is expanding, how its slices are distributed remains an open question. Enter Worldcoin, an innovative worldwide initiative that creates an identity system based on proof of personhood and zero-knowledge proofs (ZKP) to provide everyone with a distinct and anonymous "World ID. Using the author's âcyberethics-mix" framework, this paper examines the possible implications of such a system concerning data's protection, ownership, accuracy, and accessibility, underscoring the ethical significance of a political approach emphasizing inclusivity and sustainability through digital decentralization.
Since the beginning of this century, information technologies have been characterized by impressive advancements that have offered us powerful tools such as distributed ledger technologies, blockchain, machine learning algorithms and smart contracts. Corporate law has not been immune from this rapid evolution; in 2014, the news that an algorithm named âVitalâ had been appointed to a board of directors of a Hong Kong-based venture capital firm caused a sensation in the business environment and among corporate law scholars. In fact, this algorithm did not assume the legal role of a board member; rather it operated as an advisor of the board of directors aimed at protecting the firm from risky (as well as overpriced) investments. A similar use of technology at the board level has been noticed as a starting point from which it is conceivable (and desirable) to develop unique tools to overcome humansâ cognitive biases and improve board monitoring function as well as boost businessesâ productivity. The crucial role of Corporation Technologies in reducing agency costs and promoting the disintermediation of organizational structures has been further emphasised in connection with the corporate social responsibility discourse. In fact, the economist Milton Friedmanâs traditional assumption that âthe only social responsibilityâ of the corporation is âto increase its profit so long as it stays within the rules of the gameâ has been vigorously re-discussed. In the Anglo-American corporate debate, as well as in the European debate, the sustainability of businesses is among the top item in the agendas of leading corporations and policy makers, increasingly so after the pandemic has exposed the vulnerability of economic structures to systemic risks. In view of the intersection between corporate governance and sustainability, the international debate has identified shareholdersâ long-term interests as a point of convergence of private business models and social and environmental values. In other words, private companies are invited to assume a societal role and to design appropriate strategies for managing their impact on the environment and the society as a whole. The colours of 21st -century corporate law are blue for corporate technologies and green for environmental policies. The prospect of algorithmic governance in contemporary corporate law systems could be a desirable tool as long as it serves to promote the sustainable development of firms integrating management models inspired by IEL general principles but not compromising their competitiveness.&nbsp;<br>
JosĂŠ M. Alonso, Judith Clifton, Daniel DĂazâFuentes
Abstract Corporatizationâarguably as important as privatization regarding public service reformâremains an underâresearched topic in Public Administration. In this paper, we explore the extent to which the implementation of different types of corporatization strategies can be explained by the ideology of the ruling party in the Spanish public healthcare sector, selected for study because this sector was subject to reform, particularly, decentralization and marketization. To do so, we use countâdata regression models to analyze secondary data from the 17 Spanish regional governments for the period 2003â2017. Our estimates reveal that rightâwing controlled regional governments exhibit a clear preference for corporatization strategies that actively involve the private sector, such as PublicâPrivate Partnerships and Public Finance Initiatives. Further analysis suggests that leftâwing governments are positively associated with the implementation of corporatization strategies that do not involve the private sector, such as the creation of Public Enterprises and Public Entities. These results are robust to a variety of alternative specifications.
The article describes involvement of modern technologies in combating corruption and their actuality in the current digitalization of the world. Such ICT tools as Digital government services, Big Data Technologies, Distributed ledger technologies (DLT) and blockchain, data mining, crowdsourcing technologies, analytical (Forensic) tools and electronic systems for verification of income declarations, as well as foreign experience of their usage and implementation are thoroughly examined.
Michael Becker, Kevin M. Merz, RĂźdiger Buchkremer
Summary We provide a highâlevel view on topics addressed in scientific articles about regulatory technology (RegTech), with a particular focus on technologies used. For this purpose, we first explore different denominations for RegTech and derive search queries to search relevant literature portals. From the hits of that information retrieval process, we select 55 articles outlining the application of information technology in regulatory affairs with an emphasis on the financial sector. In comparison, we examine the technological scope of 347 RegTech companies and compare our findings with the scientific literature. Our research reveals that âcompliance managementâ is the most relevant topic in practice, and ârisk managementâ is the primary subject in research. The most significant technologies as of today are âartificial intelligenceâ and distributed ledger technologies such as âblockchainâ.
This article explores the potential for applying blockchain technology for regulatory compliance and for reducing compliance costs and easing regulatory burdens. We describe the development of the Project Maison proof-of-concept blockchain system for regulatory reporting of mortgages in the U.K. This case study identified use cases and also the risks of increased supervision and loss of control and the governance challenges and trade-offs inherent in applying a decentralized approach to regulatory reporting.
Advancements in the digital domain, for example in blockchain technology, big data and machine learning, are increasingly shaping the lives of individuals, groups, organizations, and societies. These developments call for effective governance to protect the basic interests and needs of these actors. Simultaneously, the very nature of governance is also changing. Policy-making is increasingly moving away from top-down governance by the state towards more horizontal modes of governance. This paper reviews the literature on governance theory in order to conceptualize governance as a mode of decentralized, networked regulation. We argue that the current dominant modes of governance are inadequate in understanding governance in the digital domain, and are poorly equipped to conceptualize novel forms of governance such as decentralized autonomous organizations (DAOs). Therefore, this study proposes a new mode of governance based on the regulation of new power relationships between the state and actors in the digital domain. This model further explores the role that blockchain technology can play in what we term decentralized network governance.
This chapter presents the aspects of blockchain regulations, misuse of the industry by mischievous players, and how the industry and governments around the world have been evolving towards embracing new laws and regulations for business focusing on delivering blockchain applications, cryptocurrencies and initial coin offerings. The blockchain industry has seen rapid growth in recent times as many new Âapplications based on distributed ledger technology hit the market. The situation regarding blockchain and cryptocurrency in the US is complicated. Although it is legal to use virtual currencies, their status remains confusing. On the south side of the US border, Mexico published a legal framework passing a law for fintech companies that includes cryptocurrencies in September 2018. On the African continent, cryptocurrencies have legal but unregulated status in South Africa, but the law of the state restricts their use.
With the birth and rise of cryptocurrencies following the success of Bitcoin and the popularity of âInitial Coin Offeringsâ, public awareness of blockchain technologies has substantially increased in recent years. Many blockchain advocates claim that these software artefacts enable radically new forms of decentralised governance by relying upon computational trust created via cryptographic proof, obviating the need for reliance on conventional trusted third-party intermediaries. But these claims rest on some key assumptions, which this paper subjects to critical examination. It asks: can existing mechanisms and procedures for collective decision-making of public blockchains (which we refer to as internal blockchain governance) live up to these ambitions? By drawing upon HLA Hartâs Concept of Law, together with literature from regulatory governance studies, we argue that unless public blockchain systems establish formal and effective internal governance, they are unlikely to be taken up at scale as a tool for social coordination, and are thus likely to remain, at best, a marginal technology.
The technology of blockchain (âBlockchainâ) realises a more efficient, equitable, and transparent distributed ledger system. An important characteristic of Blockchain is its automated, de-centralized, and neutral ledger system which could be useful to carry out Corporate Social Responsibility (âCSRâ) initiatives. Part I of this paper suggests that the Blockchain will evolve to become a permanent âdisruptorâ with the potential to transform corporationsâ CSR practices. Part II introduces the Blockchain and identifies its significance to CSR, both in the United States (âU.S.â) and internationally. Part III explains how the Blockchain can help demonstrate that a corporation is a âresponsible businessâ through good corporate governance, effective supply chain management, and exercise of the triple bottom line â people, profit, and planet. Part IV examines how the Blockchainâs disruptive role influences corporate decision-making, especially its implications for corporate investors, financial institutions, and the practice of law as well as its impact on intellectual property and data privacy functions. Part V discusses the U.S. current regulatory landscape and growing trends relating to the Blockchain. Finally, Part VI recommends lawmakers and corporations consider adopting a legislative framework that aligns with the United Nations Sustainable Development Goals (âUN SDGsâ) to demonstrate responsible investment and good corporate governance. Accordingly, the Blockchain can help corporations transform CSR practices and assist lawmakers to regain public trust through effective rulemaking that demands corporate accountability on domestic and international issues.
This article entails an innovative approach to smart grid technology implementation, as it connects governance research with legal analysis. We apply the empirico-legal âILTIAD frameworkâ, which combines Elinor Ostromâs Institutional Analysis and Development (IAD) framework with institutional legal theory (ILT), to an empirical case study of a local smart grid project. Empirical data were collected in an exploratory, descriptive example study of a single case, focusing on the Action Situation and interactions towards establishing a local Smart Grid. The case was chosen because of its complexity, following the âlogic of intensity samplingâ. Data triangulation took place combining participatory observation, semi-structured interviews, and document analysis. Through an exploratory case study, we showed how the ILTIAD framework can help reduce complexity in local decision-making processes on smart grid implementation, as it allows for analytical description and prescriptive design of local smart grid systems. In the analysis we addressed ownership arrangements and contracts and identified barriers and opportunities for realizing a local smart grid system. The design part includes a scenario which revealed the prescribed patterns of behaviour (liberties and abilities) and the consequential aspects that apply to each situation. Analysing and designing normative alignment ex ante to the planning and implementation of a smart grid system provides clarity to stakeholders about their current opportunities. For this reason, the ILTIAD framework can be used as a design guideline for establishing new and integrated smart grid projects.
Abstract Regulatory agencies in the United States and Europe have wellâdeserved reputations for fixating on the total benefits and costs of proposed and final regulatory actions, without doing any more than anecdotally mentioning the subpopulations and individuals who may bear disproportionate costs or reap disproportionate benefits. This is especially true on the âcostâ side of the costâbenefit ledger, where analysts exert little effort to even inform decisionmakers and the public that the costs of regulations might be distributed either regressively or progressively. Many scholars and advocates have observed that regulation can increase the efficiency of market outcomes, but caution about its untoward (or suboptimal) effects on equity. Here, we argue that without considering distributional information about costs and benefits, regulatory policies in fact can also cause violence to notions of efficiency , for two reasons: (i) society cannot hope to approach Paretoâefficient outcomes without identifying those who must lose so that others can gain more; and (ii) because the harm experienced by involuntary risks and by imposed regulatory costs is likely nonâlinear in its magnitude (at the individual level), efficiency is, in fact, a strong function of the shape of the distribution of these effects. This article reviews evidence about the distribution of regulatory costs and benefits, describes how agencies fail to incorporate readily available distributional information, and sketches a vision for how they could analyze costs and benefits to promote more efficient regulatory choices and outcomes.
Open access
Regulation and Compliance Studies
Health Systems, Economic Evaluations, Quality of Life
During the last two decades the structuring and functioning of the public sector has undergone major shifts from a centralized and consolidated public sector to a decentralized, structurally devolved and âautonomizingâ public sector, including the disconnection of policy design, implementation and evaluation (OECD 2002; Pollitt and Bouckaert 2011; Christensen and LĂŚgreid 2006). Systems of public administration have been disaggregated into a multitude of different kinds of (semi-)autonomous organizations, denoted as âagenciesâ or âquangosâ (Flinders and Smith 1999; Pollitt and Talbot 2004). This disaggregation through âagencificationâ is the result of a process of vertical and horizontal specialization, based on geography as well as different types of purposes, tasks, customer groups or processes (Christensen et al. 2007; Roness 2007). In this process of agencification and autonomization, the responsibilities and autonomy of public organizations are redefined (structural aspect). Moreover, the way in which they are controlled by government, including the mechanisms of accountability, is redesigned â mostly from ex ante to ex post , and from input-based to result-based rationales (functional aspect). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.