Key Principles of Effective Licensing Regulation
Keywords:
Licensing regulation, public interest, proportionality, risk-based regulation, regulatory enforcement, rule of law, administrative law, regulatory reform, OECD principles, stakeholder engagement.Abstract
Licensing regulation plays a critical role in balancing public interest
protection with economic freedom and market efficiency. This chapter explores the key
principles that underpin effective licensing frameworks, drawing from internationally
recognized standards, particularly those developed by the Organisation for Economic Co
operation and Development (OECD). The analysis covers core regulatory values such as
proportionality, risk-based assessment, transparency, user-centric procedures, enforcement
integration, legal integrity, adaptability, and stakeholder engagement. These principles are
evaluated through both legal and economic lenses, including the public interest theory of
regulation and concerns around regulatory capture.
References
OECD “Draft Best Practice Principles for Licensing and Permitting” (2025)
(betteregulation.lumsa.it, paperzz.com, en.wikipedia.org, oecd.org)
OECD “Good Regulation” checklist, Reducing Unnecessary Regulatory Burdens
(1library.net)
OECD “International Regulatory Co-operation” (2021) (oecd.org)
OECD “Regulatory Enforcement and Inspections” (academia.edu)
Public Interest Theory of Regulation (en.wikipedia.org)
Regulatory Economics & Normative Regulation (en.wikipedia.org)
Proportionality in EU law (en.wikipedia.org)
Regulatory Capture
Rule of Law & licensing integrity (en.wikipedia.org)
