Navigating the Shift: Interest Group Dynamics in Hybrid Regulatory Regimes

Complex societal challenges have exposed a need for governments to be reactive and above all adaptive. On various governmental levels, there has been a call for regulatory innovation for governments to develop tools that allow them to navigate these challenges. Particularly regulation based on goals (goal-based regulation or GBR) instead of rules (rule-based regulation or RBR), is seen as a way to enhance the effectiveness and legitimacy of regulation. Key outcomes associated with goal-based regulation include improved compliance and goal attainment, increased innovation, lower regulatory and administrative burdens, and more sectoral and societal support and trust. Despite widespread support for goal-based regulation, much of the existing scientific literature remains theoretical and conjectural, with a notable lack of empirically validated and conceptually grounded research. This paper focusses on a key aspect of any type of regulation, namely the involvement of interest groups in the regulatory process. We examine the impact of goal-based regulation on the modes and timing of interest group involvement, building on survey and interview data. By closely looking at various cases within the Flemish welfare sector, the study aims to determine whether interest groups engage differently in sectors characterized by goal-based regulation or hybrid forms compared to those governed by rule-based regulation. Hypotheses suggest that goal-based regulation, due to its inherent uncertainties and risks, necessitates closer relationships and more information exchange between policymakers and interest groups in order to set goals that match the realities in which regulatees and beneficiaries find themselves. By examining these dynamics, the paper aims to provide a nuanced understanding of how goal-based regulation influences interest group behaviour, contributing to the broader discussion on regulatory governance and interest groups. The findings are expected to offer valuable insights for policymakers and interest groups navigating the complexities of changing regulatory regimes and increased regulatory leeway.