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This independent blog collects news about projects or achievements in regulatory reform / better regulation. It is edited by Charles H. Montin. All opinions expressed are given on a personal basis.
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31 October 2011

Pakistan reviews cotton legislation

Regulatory reform principles are most effective when designed and applied across the full regulatory spectrum. But specific sectoral examples can also be useful, to feed into research of international best practice and flesh out how principles are supposed to be applied. A news article from Pakistan "Business Recorder" published yesterday explores, on the basis of a USAID-sponsored study, how regulation should be adjusted to foster efficiency and growth in an important economic sector in Pakistan: cotton production. The study recommends the abolition of Pakistan Cotton Board and Provincial Cotton Control Board and the reform of the regulatory framework in the cotton ginning sector. Here is my summary of some point suseful for RR experts:

- Cotton legislation is too complex (too many texts) and has not been able to facilitate production and processing of high value cotton. Some texts are outdated and do not incorporate improvements in cotton grading/standardisation and marketing.
- "regulation is intrusive and attempts to control factors which are related to operation of markets;... enforcement is weak because of lack of resources, inappropriate focus, multiplicity and overlaps."
Suggestions include shifting the focus of regulation from maintaining varietal purity to adequate 'labelling' and disclosure, and strengthening enforcement of labelling provisions by establishing incentives and penalties.

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