ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

Trust and Watchdogs' Dilemmas

The failure of the regulatory regime as evidenced in the ongoing crisis has its origins in many fields. Two factors that have abetted this failure relate, one, to the conventional emphasis on macro-management and an arm's length relationship with the regulatees, and, two, to the belief that the market is endowed with the capacity to periodically readjust itself to changing requirements. This article first considers the evolutionary aspects of corporate and regulatory management. It is recognised that regulatory failure extends to many other areas. Four cases are cited to illustrate this aspect. The modus operandi of those engaged in fraudulent behaviour and how the regulatory agencies have a handicap in addressing systemic failure are discussed. While emphasising the need for a road map, the article outlines a few directions in which the first steps have to be taken.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top