Contesting Regulatory Capacity: Exploring Doctrines in the Regulatory State

ABSTRACT The contemporary literature on regulation and development has emphasised the importance of low discretion devices for achieving desired policy objectives. At the same time, there has been a growing recognition that state capacity in general, and regulatory capacity more specifically, are essential for achieving development goals in a world of uncertainty. However, as with most concepts in public administration, while everyone may agree on the significance of regulatory capacity, there is less agreement as to what regulatory capacity actually means. In this article, we explore different doctrines on ‘how to’ organise for regulatory capacity, pointing to the contemporary dominance of the ‘low discretion’ strain of doctrines. We also highlight the sources of policy disappointment and emerging calls for a more discretionary understanding of regulatory capacity. This argument is explored in the context of Brazil, a large emerging economy with a track record of regulatory reforms over the past decades.