Topic: Statutory, regulatory and various quasi-judicial bodies
Q4. Examine the role of independent regulatory institutions in ensuring transparency and accountability in the digital economy. Discuss the major constraints affecting their effectiveness. (10 M)
Difficulty Level: Medium
Reference: IE
Why the question
The rapid expansion of the digital economy and recent concerns over unregulated finfluencers have highlighted the growing importance of independent regulators in ensuring transparency, accountability and consumer protection.
Key Demand of the question
Examine the role played by independent regulatory institutions in promoting transparency and accountability in the digital economy. Then discuss the major constraints limiting their effectiveness.
Structure of the Answer:
Introduction
Briefly highlight the importance of independent regulators in maintaining trust, fair markets and good governance in an increasingly digital economy.
Body
- Role of regulatory institutions: Explain how they promote transparency, accountability and consumer protection.
- Constraints: Mention the major institutional, technological and enforcement challenges affecting their effectiveness.
Conclusion
Conclude by emphasising the need for adaptive, technology-driven and independent regulatory institutions to ensure responsible growth of the digital economy.
