Government Laws, Regulations and Policies: Small Fish in a Big Pond

Abstract

Global development has, in recent years, been
shaped by the rise of transnational capital. This has implications
for the quality and effectiveness of those national laws,
regulations and policies in place to monitor transnational capital,
ensure that multi national organisations assume responsibility
and hold them accountable should they fail to do so. In balancing
these objectives, contrasting issues come to the fore, such as the
fear of capital flight; an issue especially profound in small open
economies where the balance may tip in the favour of retaining,
as opposed to regulating, foreign capital.
This paper can be considered in three parts. First, the paper
addresses the shift in global leadership from national
governments to multinational corporations (with particular
reference to the rise of the Transnational Capitalist Class). This
shift will incorporate the connotations of the Third Way. In
considering this ideology, it will propose the Third Way as a
transition phase to a stage when government is more the “third
wheel” than an equal partner in governance structures. Second,
the implications of the changing nature of governance on the
capacity of nation states to develop effective laws, regulations and
policies is discussed which leads on to the third aspect of the
paper which identifies the challenges for governments, business
and society in reimagining the governance structure pertaining to
law, regulation and policy and the need to reconsider existing
structures in light of global shifts in power structures.
A new leadership structure, both within the national and
international governance system has far reaching implications.
Boundary constraints no longer an issue, the potential for
equality and global democracy is huge. Instead, a post
recessionary world faces new governance challenges in the shape
of; legitimacy; accountability and responsibility. Capitalism has
invaded government and the primary challenge will be in
avoiding the same issues that have dogged our financial markets
for the last number of years. The challenge then to laws,
regulations and public policy is huge, especially considering that
the governments regulating are smaller than those dictating
agenda on a global level