An Impact of the Network Governance Doctrine on Legitimacy of Self-Governed Entities
Abstract
The paper is devoted to the substantiation of the modern possibilities of the network approach in public governance and the definition of those aspects of it that provide for the expansion of self-regulating principles of economic activity for the needs of Ukraine. This study explores the influence of the network governance approach on the institutionalization of self-regulatory organizations. It reveals that the network approach, which challenges traditional hierarchical management models and emphasizes collaborative and decentralized structures, significantly shapes the landscape of self-regulatory organizations. These organizations exemplify network management, wherein industry participants voluntarily establish their own rules, fostering a more adaptable regulatory framework. Furthermore, they serve as platforms for information exchange among industry members, promoting collective understanding of best practices, standards, and emerging challenges.
The study demonstrates that the network approach facilitates the formation of expert communities within self-regulatory organizations, enabling the development of regulatory standards based on firsthand industry knowledge. Operating within a network governance model enables these organizations to swiftly adapt to industry changes, technological advancements, and emerging risks compared to traditional bureaucratic regulatory bodies.
Moreover, the network approach underscores the importance of trust and social capital in governance, with self-regulatory organizations relying on trust among members and external stakeholders to uphold their rules. Building and maintaining trust within the network are essential for effective self-regulation. Additionally, the study suggests that regulatory responsibilities can be shared among various actors, and self-regulatory organizations and can complement government regulation by offering detailed and tailored regulatory frameworks that address industry-specific nuances.
The network approach also incorporates peer monitoring and accountability mechanisms, with members of self-regulatory organizations monitoring each other’s adherence to established rules.
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References
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