Economists will celebrate 55 years of the theory of regulation pioneered by George Stigler, which was published in 1971 in 2026. The basic question asked at the time and today is: why do we have regulation? The pubic choice and political economy answer of Stigler (1971) and many scholars after him, is that the industry of a specific sector will acquire the regulation or the public interest in this regulation and, subsequently, the industry will design and operate it to its benefits. At least, this is in a nutshell my summary of the literature inspired by Sam Peltzman (2021, p.20). If we add to this the perspectives of theories of bureaucracy (Sharma, 2020), we become skeptic of an efficient implementation of regulations by governments or governmental agencies.
In the field of pharmaceutical applications, it is the “European Diabetes Forum” which calls for a regulation on reliable “glucose monitoring devices” with industry and user backing. Of course, this asks for bureaucratic control of the regulation, imports and markets of such devices later on. The one (regulation) is rarely coming without the other (bureaucracy). It is about time to acknowledge this for societies as a whole as well.
