Non-Governmental Organisations in international regulation: Lessons from certification schemes

Abstract

The decentralisation and globalisation of regulation has opened up new kinds of regulatory activities to new kinds of actors. Certification schemes as regulatory tools and Non-Governmental Organisations (NGOs) as regulators are two such examples. NGOs have their own set of regulatory capabilities which can be utilised to address some of the difficulties that occur in regulating across nations. At the international level, there is a strong case to be made for collaborative regulation to exploit the regulatory capacities of NGOs and other non-state actors. Certification schemes are often collaborative, and they exploit market mechanisms to further social agendas. NGO regulation is not without its pitfalls, as there are issues with accountability and effectiveness. Certification schemes as a regulatory tool have their own problems, with questions about the effectiveness of the schemes, problems with supply and demand, and the negative impact of fragmentation. This paper illustrates the potential of certification schemes, but it also argues that that potential is not being realised.