Agile Governing in a Post-Pandemic World
Need for Change
The events of the past two years have highlighted the need for governments to expect the unexpected. Change is difficult, but it is clear that agile governments are better prepared to respond to 21st-century issues and challenges arising from emerging technologies, climate change and public health emergencies.
Politicians and policy makers have an opportunity to learn from the experiences of the pandemic and create governments and policies that reflect a changing and unpredictable world. This requires more innovation within institutions that are known more for bureaucracy and the status quo.
Agile Governments
In the private sector, there is a wealth of research and insight that companies draw on to fuel innovation and change. For governments though, there is less insight available and embracing innovative change can be a difficult task. “The modern economy challenges democratic governments' old ways of work. Whereas an innovative government is one that is more digital and opening - working collaboratively with the public and private sector. They have a more user-centered way of governing and are open to better alternatives”, says Lukas Willi, a former policy researcher at think-tank W.I.R.E. (Web for Interdisciplinary Research & Expertise).
Willi believes that there are potentially many ways governments will need to evolve in the future. For example, governments will become more anticipatory. A method and mindset that encourages governments to anticipate - based on research, public perspectives and industry experts - the outcomes and impact of events and new technologies. By anticipating different scenarios, policy experts and regulators can implement the right regulations as and when scenarios occur. It allows for less reactivity and more flexibility.
The second idea is outcome focused regulation. Governments know what goals they wish to achieve, but aren’t always sure how to get there. By articulating the outcomes governments are aiming for, the private sector can work on producing innovations and start companies that meet the government goals. For example, policies focused on reducing emissions in cities have led to the rise of electric vehicle and battery storage innovations and public health goals to reduce obesity have led to more zero sugar, low-calories and plant-based innovations from the private sector. In this way, governments make policy decisions as data and evidence of impact become available.
“The key is to welcome new innovations within policy guidelines so the private sector can build ideas that create the best solutions for the public. Sometimes governments provide frameworks or advice to encourage innovations to align with government goals and future policy ambitions. For example, the Singaporean government has produced best practice frameworks for how technology companies should build and develop ethical AI-systems. It’s voluntary but gives more confidence to investments made by the private sector”, said Willi.
Global Movement
Global organisations including the Organisation for Economic Cooperation and Development (OECD) and the World Economic Forum (WEF) are also advocating for more agile governments globally. Many countries including Canada, Denmark, Italy, Japan, and Singapore have been the earlier adopters of the “Agile Nations” initiative, signing the world’s first agreement in 2020. The alliance helps link emerging technologies with new, relevant regulations. The agreement aims to help governments and regulations with agile processes such as ‘regulatory sandboxes and policy prototyping” to be better prepared for a continuously changing, complex world as it relates to entrepreneurship and innovation.
Tobacco Sector
As in the car manufacturing industry, innovation has been growing in the tobacco sector to find better solutions for adult smokers who would otherwise continue to smoke.
Philip Morris International has invested billions into developing a portfolio of smoke-free products that deliver nicotine without burning tobacco over the last 10 years. By avoiding the process of combustion - the burning of tobacco - these novel products, whilst not risk free, emit significantly lower levels of harmful chemicals compared to cigarettes. These innovations provide better alternatives to adult smokers which reduces their exposure to these harmful chemicals and may help to reduce the negative impact tobacco products have on public health. Yet adapting regulation which acknowledges the different risk profiles of novel tobacco products is one of the challenges faced by the company, the sector and for adult smokers despite the demand. Today, millions of adult smokers worldwide have switched to novel products such as heated tobacco products and e-cigarettes, and that number continues to grow.
PMI believes that with the right regulatory encouragement and support, cigarette sales can end within 10 to 15 years in many countries if action is taken and governments consider more outcome focused policy making. In 2020, the U.S. Food and Drug Administration (FDA) authorised the marketing of PMI’s tobacco heating system IQOS as a modified risk tobacco product (MRTP). In doing this, the US FDA was satisfied that research studies showed that switching completely from conventional cigarettes to IQOS significantly reduces exposure to harmful or potentially harmful chemicals. This decision follows a review of the extensive scientific evidence the company submitted to the FDA in 2016.
PMI is hopeful this decision by the US FDA will encourage other governments around the world to do the same. Recognizing the potential of novel products, such as has been the case with e-cigarettes in the UK, gives adult smokers, who would otherwise continue to smoke, a better choice.
Conclusion
Living in a time with many unknowns and competing priorities, sometimes it’s easier for governments to stick with the status quo. But as the past 2 years have shown, outcome focused, agile governance that is driven by data will be more effective at adapting policies, embracing emerging technology and co-creating solutions for the 21st century.