Canadian Government Executive - Volume 26 - Issue 01

January/February 2020 // Canadian Government Executive / 27 POLICY around the design of factory facilities and processes, it looks at how well factory sys- tems are able to monitor safety, reduce risks and intervene when issues are detected, giving businesses greater freedom in their operations. 3. Experiment and learn Agile regulators are creating space for businesses to trial and test new approach- es – and learning about how their rules need to adapt along the way. Many administrations have emulated the UK Financial Conduct Authority’s “reg- ulatory sandbox”, in which regulators per- mit businesses to test novel products and processes for a trial period. The UK is driving a new wave of regu- latory innovation through its Regulators’ Pioneer Fund. Established in 2018, it has invested in 15 novel experiments – from stimulating tech entry to the legal services market to supporting testing of AI-pow- ered medical devices. 4. Be responsive Agile regulators are harnessing the power of technology to monitor and evaluate the performance of these outcome-focused re- gimes more effectively – enabling them to intervene in more targeted ways to uphold performance. The Dubai Financial Services Authority has developed its own “in-house regtech” to crunch through huge volumes of finan- cial data and enable more sophisticated management of risk. As well as enabling better risk-based enforcement, regulators are increasingly using these techniques to monitor whether regulation is really work- ing and, if not, to reform it. 5. Bring business on board Laws cannot – and should not – be fre- quently revisited. Agile regulators are us- ing mechanisms such as regulatory guid- ance and industry standards to help fill the governance gap, especially in areas of rapid technological innovation. The UK’s Centre for Connected and Au- tonomous Vehicles has created a role mod- el of public-private collaboration. It has created a code of practice to help steer the testing of self-driving vehicles without the need for repeated changes to legislation as the technology evolves, alongside working with the British Standards Institution on standards for self-driving vehicles. 6. Connect with your peers In the Fourth Industrial Revolution, in- novation often cuts across sectoral and regulatory boundaries. Agile regulators are working with their peers to ensure a joint response to new products and services so that in- novators don’t suffer “death by a thou- sand paper cuts” and that bad actors can’t exploit gaps between institutions. The Danish Business Authority, for ex- ample, has established a “one-stop shop” for new business models to help busi- nesses find their way through the regu- latory landscape and bring their ideas to market quickly. 7. Talk to the provinces (or “death by a thousand paper cuts”, part two) Agile regulators are also coordinating at the sub-national level, where innova- tors in areas such as mobility can find themselves navigating new rules and processes across different towns, states and regions. The 2017 Canada Free Trade Agreement seeks to create a more open and efficient internal market across the Canadian provinces, enhancing the diffu- sion of innovation. 8. Have a global outlook (or “death by a thousand paper cuts”, part three) Agile regulators are putting increased efforts into international cooperation and reducing barriers to trade and the scope for “rule-shopping” across admin- istrations by internationally mobile busi- nesses. For example, the Global Finan- cial Innovation Network is developing a framework for cross-border testing of in- novations, building on the development of regulatory sandboxes in more than 20 countries worldwide. 9. Design for your innovators Innovative new entrants frequently have lower capacity than incumbent firms to shape and implement new rules. Agile regulators are addressing this bias and finding new ways to make it easier for innovative firms to engage with regulation. For example, New Zealand’s Better for Business programme has cre- ated an AI-powered chatbot to answer firms’ regulatory queries, lowering the cost of understanding the rules. 10. Put citizens at the centre We’ve saved the most important point till last. As governance evolves, it is crucial that it addresses the priorities of the citi- zens it is meant to serve and earns their trust in its processes and outcomes. Agile regulators are finding creative ways to enhance citizen involvement in the design and implementation of rules for new technology. For example, Korea has integrated citizen democracy into the de- sign of its latest smart city initiatives – en- suring that consideration of societal needs is underwritten into the testing and intro- duction of new technology. Elsewhere, the OECD is promoting enhanced citizen in- volvement in governance through its Open Government Initiative. These case studies are just the start: this April, we’ll be showcasing the world’s best practice through the Agile Governance Awards, which are now open. We want to recognise the most exciting and impactful practices from across the globe and foster their dissemination. At the same time, we are developing an Agile Governance Scorecard to help governments to assess and improve their regulatory system. In 2020, expect regula- tors to make big strides in improving their technology governance. Lisa Witter is Apolitical’s Co-Founder and Executive Chairperson. Jaee Samant is Director-General, Market Frameworks, Department for Business, Energy and Industrial Strategy of the United Kingdom. This article was origi- nally published on The World Economic Forum and later on Apolitical.co and reprinted here by permission. The au- thors are the co-chairs of the Global Future Council for Agile Governance. For more information contact agile@ weforum.org .