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Regulatory Administrative InstitutionsMPA 517

Lecture-31

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Recap

• A drug is, in the broadest of terms, a chemical substance that has known biological effects on humans or other animals. Foods are generally excluded from this definition, in spite of their physiological effects on animal species.

• In pharmacology, a drug is "a chemical substance used in the treatment, cure, prevention, or diagnosis of disease or used to otherwise enhance physical or mental well-being." Drugs may be used for a limited duration, or on a regular basis for chronic disorders.

• Recreational drugs are chemical substances that affect the central nervous system. Alcohol, nicotine, and caffeine are the most widely consumed psychotropic drugs worldwide.

• They may be used for effects on perception, consciousness, personality, and behavior. Many recreational drugs are also used in medicine.

• Some drugs can cause addiction and habituation and all drugs have side effects. Many drugs are illegal for recreational purposes and international treaties such as the Single Convention on Narcotic Drugs exist for the purpose of legally prohibiting certain substances.

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Drug addiction symptoms or behaviors

1. Feeling that you have to use the drug regularly — this can be daily or even several times a day

2. Failing in your attempts to stop using the drug

3. Making certain that you maintain a supply of the drug

4. Spending money on the drug, even though you can't afford it

5. Doing things to obtain the drug that you normally wouldn't do, such as stealing

6. Feeling that you need the drug to deal with your problems

7. Driving or doing other risky activities when you're under the influence of the drug

8. Focusing more and more time and energy on getting and using the drug

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Divisions

Pharmacy Services Division• Pharmacy Services Division shall be responsible for the development and promotion of

pharmacy services and to perform other functions connected therewith.

Health and OTC Products (non-drugs) Division• Health and OTC Products (non-drugs Division shall be responsible for the assessment,

licensing and registration of Alternative Medicines such as Ayurvedic, Chinese, Unani and Homeopathy, enlistment or registration of nutritional products and food supplements for human beings, animals and to perform other functions connected therewith.

Costing and Pricing Division• Costing and Pricing Division shall be responsible for the costing and pricing of therapeutic

goods and to perform other functions connected therewith.

Budget and Accounts Division• Budget and Accounts Division shall be responsible for budgetary and financial aspects of

the Authority and other daily accounting matters connected therewith or ancillary thereto.

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Inter Services Selection Board

• ISSB mission is to Select potential officers for the defence forces of Pakistan who have the requisite mental, moral, social and dynamic qualities to make successful leaders during peace and war.

• The above mission sets a very sacred and tough challenge for the oraganistaion which can only be met with true dedication, selfless devotion and unflinching resolve to set and meet the standards.

• Inter Services Selection Board follows a set of time tested protocols to analyse and predict human personality and along the way has earned a respectable name and fame to its credit.

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Today’s Lecture

• Revision Lecture 1-15

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What is regulation?

• A regulation is a rule or law designed to control or govern conduct. In statist mechanisms, it can also be extended to monitoring and enforcement of rules as established by primary and/or delegated legislation. In this form, it is generally a written instrument containing rules having the force of statist law (as opposed to natural law). Other forms of regulation are self regulation

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State socialism

• State socialism broadly refers to forms of socialism based on state ownership of the means of production and state-directed allocation of resources. It is often used in reference to Soviet-type economic systems of former Communist states

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State social institutions

• In some socialist states, representatives of these organizations are guaranteed a certain number of seats on the national legislative bodies. In socialist states, the social organizations are expected to promote social unity and cohesion, to serve as a link between the government and society, and to provide a forum for recruitment of new communist party members.

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Regulatory economics

• The economics of imposing or removing regulations relating to markets is analysed in regulatory economics

• Regulatory economics is the economics of regulation, in the sense of the application of law by government for various purposes, such as

• centrally-planning an economy• remedying market failure• enriching well-connected firms• or benefiting politicians

• It is not considered to include voluntary regulation that may be accomplished in the private sphere

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Why Regulations

• Regulation creates limits, constrains a right, creates or limits a duty, or allocates a responsibility

• A regulation or administrative rule, issued by an organization, used to guide or prescribe the conduct of members of that organization; can specifically refer to acts in which a government or state body limits the behavior of businesses

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Regulatory Capture

• Countering, overriding, or bypassing regulation is Regulatory Capture where a regulatory agency created to act in the public interest, instead advances the commercial or special concerns of interest groups that dominate the industry that the agency is charged with regulating

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Contract Enforcement

• Businesses contract with other businesses. These contracts may be complex, such as mergers, or they may be as simple as a warranty on supplies purchased.

• The government enforces these contracts. Companies bring one another to court just as individuals do.

• An oral agreement can constitute a contract, but usually only a written agreement is provable.

• If one party fails or refuses to meet its obligation under a contract, a company will turn to the legal system for enforcement.

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Administrative law

• Administrative law is the body of law that governs the activities of administrative agencies of government.

• Government agency action can include rulemaking, adjudication, or the enforcement of a specific regulatory agenda.

• Administrative law is considered a branch of public law.

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Why regulations are important?

• Regulation, one of the three key levers of state power (together with fiscal and monetary policy), is of critical importance in shaping the welfare of economies and society.

• The objective of regulatory policy is to ensure that the regulatory lever works effectively, so that regulations and regulatory frameworks are in the public interest.

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Regulatory policy as a lever of state power

• Regulatory policy can be viewed, strategically alongside fiscal and monetary policy as one of the three core levers at the disposal of governments for managing the economy and society, implementing policy and influencing behaviour.

Fundamental powers of the state Currency

Monitory Policy

Regulation

Regulatory Policy

Taxes/ Expenditure

Fiscal Policy

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Regulatory policy as part of good public governance

• The link between regulatory policy and the broader public governance framework is critical.

• Regulatory policy is already a key part of the work on governance, the goals of which are transparency, legitimacy, accountability, trust in government, efficiency and policy coherence.

• An effective regulatory policy both depends on other well functioning aspects of public governance, and also contributes to them, for example as regards transparency and citizen engagement

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Regulatory policy and economic theory

• Alongside political science, history and the law, the discipline of economics has been a key factor in the development of regulatory policy

• Regulatory policy has both learnt from and contributes to, developments in economic theory.

• Since the crisis, there has been a vigorous debate on what may need to change in term of prevailing economic convention, and by implications, what needs to change in countries’ approach to regulatory governance.

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Country principles for better regulation

• An early example is the set of principles established by the United Kingdom’s Better Regulation Task Force in 1998, an independent advisory body to the government at the time:– Transparency– Accountability.– Targeting.– Consistency.– Proportionality

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WTO• The WTO is a body designed to promote free trade through

organizing trade negotiations and act as an independent arbiter in settling trade disputes. To some extent the WTO has been successful in promoting greater free trade.

Advantages

– Lower prices for consumers. Removing tariffs enables us to buy cheaper imports

– Free trade encourages greater competitiveness. Firms face a higher incentive to cut costs. For example, a domestic monopoly may now face competition from foreign firms

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WTO- Advantages

• Law of comparative advantage states that free trade will enable an increase in economic welfare. This is because countries can specialize in producing goods where they have a lower opportunity cost.

• Economies of scale. By encouraging free trade, firms can specialize and produce a higher quantity. This enables more economies of scale, this is important for industries with high fixed costs, such as car and aero plane manufacture.

• Free trade can help increase global economic growth

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WTO- Disadvantages

• It is argued the benefits of free trade accrue mostly to the developed world.

• Free trade may prevent developing economies develop their infant industries.

– For example, if a developing economy was trying to diversify their economy to develop a new manufacturing industry, they may be unable to do it without some tariff protection.

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Economic Affairs Division

• Economic Affairs Division is responsible for assessment of requirements, programming and negotiations of external economic assistance related to the Government of Pakistan and its constituent units from foreign Governments and multilateral agencies.

• The issues regarding external debt management and matters relating to technical assistance to foreign countries, credit to friendly countries on lending / re-lending of foreign loans and monitoring of aid utilization are being handled by this division.

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Pakistan Bureau of Statistics• The Pakistan Bureau of Statistics, also known as PBS is a Government of

Pakistan's major and executive and federal department charged with the national statistical services and to provide solid and comprehensive statistical research.

• The PBS is one of the departments of the Statistics Division of the Ministry of Economic Affairs and Statistics of Pakistan.

• The department assists and encourages informed decision-making, research and discussion within governments and the community, by providing a high quality, objective and responsive national statistical service.

• PBS compiles statistics from many sources and produces global updates, including the Statistical Yearbook, Pakistan Statistics Handbook and yearbooks in specialized fields of statistics.

• It creates statistics on the economy, the government, trade and other fields. It also operates the census for the country

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Advantages of Privatization

1. Increase in efficiency and Profitability

Most Govt. industries and services are inefficient and running in losses, when these will be transferred to private sector, their administration will improve and non-development expenditures will be reduced, their efficiency will increase and will be converted into profitable ventures.

2. Increase in Foreign Investment and Export Earnings

Privatization will increase foreign investment when foreigners will purchase them. Their production will increase which will more foreign exchange for Pakistan and if these enterprises are set up by foreign loans, these loans will be repaid out of the sale proceeds, which will reduce the burden of foreign loans.

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MINISTRY OF PRIVATIZATION

The main objectives of privatisation are as follows:

• To improve the operational efficiency and overall performance of entities proposed to be privatized and to promote competition.

• To reduce the financial burden imposed upon the Government by public enterprises and to release resources for utilization on alternate urgent requirements such as those of the social sectors and the development of physical and technological infrastructure, thereby accelerating the pace of industrialization.

• To promote and strengthen the capital market by broadening and deepening its base through enlarging the number of share-holders and listing new enterprises.

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Ministry of Communications• The Ministry of Communications is a Cabinet-level ministry of the

Pakistani Government responsible for analysing, formulating and implementing central policy on communications and transportation. It is the one of the oldest ministries, created August 14, 1947.

• The Ministry of Communications has jurisdiction over telegraph and telephone communications as well as public radio, technical means of radio and television broadcasting and the distribution of periodicals.

• The Ministry and its political executive, the Communications Minister, are headquartered in the Cabinet Secretariat, Islamabad Capital Venue.

• The Communications Minister is a public appointee who must be a member of Parliament. As of 2011, the Communications Minister is Arbab Alamgir Khan of the Pakistan Peoples Party.

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Departments / Organizations

The Ministry of Communications exercise administrative control over the following Departments / Organizations:

i) National Transport Research Centre ii) National Highway & Motorway Police iii) National Highway Authority iv) Construction Machinery Training Institute

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Functions of Highway Council

• To approve five year plans and perspective plans, prepared by the board in consultation with the planning & Development Division, for the construction, development, repair & maintenance of National Highways & Strategic Roads specially entrusted to the Authority by the Federal Government or by Provincial Government or other Authority concerned.

– To consider progress reports of the Authority.– To lay down national policies and guidelines to be followed by

the Authority in the performance of its functions– To review and reappraise projects– To approve the annual budget of the Authority

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Ministry of Information Technology

The Ministry of Information Technology (MoIT) is the national focal Ministry and enabling arm of the Government of Pakistan for planning, coordinating and directing efforts to initiate and launch Information Technology and Telecommunications programs and projects aimed at economic development of the country.

• MoIT consists of one division; Information Technology and Telecommunications Division.

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PTA's Functions• To regulate the establishment, operation and maintenance of

telecommunication systems and provision of telecommunication services in Pakistan.

• To receive and expeditiously dispose of applications for the use of radio-frequency spectrum.

• To promote and protect the interests of users of telecommunication services in Pakistan.

• To promote the availability of a wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan.

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Summary

• Revision Lecture 1-15

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Next Lecture

• Revision Lecture 15-30