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Thami Nompula MBA Dissertation March 2007 - Rhodes eResearch ...

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investigative skills in regulation (Downes and Husbands, 2003; Makaya, 2001; Stern, 2000). The<br />

research and investigative functions of a regulatory institution require a number of supporting<br />

staff who are specialists or knowledge workers in their own right. These are librarians,<br />

information specialists, customer service or complaints officials, communication specialists,<br />

project managers, policy analysts and statisticians (Downes and Husbands, 2003). Given the<br />

general scarcity of skilled professionals in developing countries such as South Africa, the<br />

recruitment, development and retention of this type of human resource base is a pressing issue for<br />

regulatory effectiveness, and by extension, economic development.<br />

Studies of regulatory agencies generally conclude that in order to be successful, there needs to be<br />

an analytical infrastructure capable of in-depth investigation and reporting on all the variables<br />

that must be taken into account to arrive at fair and balanced decisions (Downes and Husbands,<br />

2003; Domah et al, 2002; Makaya, 2001; Stern, 2000; World Bank, 2004). Knowledge workers<br />

want an environment in which they can perform their own independent research and not be<br />

merely project managers for other knowledge workers. The pool of expertise required to support<br />

regulators to carry out their mandate needs to demonstrate superior capabilities in the respective<br />

technical fields of the regulatory agency (Downes and Husbands, 2003)<br />

In a market where the skills necessary to ensure effective regulation leading to investor<br />

confidence and market competition, it is important for regulators to allocate the requisite<br />

resources to attract, develop and retain professionals. The availability of adequate resources and<br />

expertise to carry out the regulatory mandate of the agency would afford it the capacity to design<br />

tariffs, assess and monitor the performance of utilities. Furthermore, it would enforce all other<br />

regulations effectively and affordably to meet the socio-economic objectives of government,<br />

provide returns for investors and protect consumers (Downes and Husbands, 2003; Makaya,<br />

2001; World Bank, 2004). The recruitment and retention of expertise must therefore be seen as<br />

central to the development of the required regulatory capability.<br />

Regulators that are understaffed with respect to professionals threaten the broader socio-<br />

economic and financial interests of government, investors and consumers (Downes and<br />

Husbands, 2003). Having a sufficient pool of professionally qualified specialists will provide<br />

institutional continuity of regulation. Retaining knowledge workers lies at the heart of this<br />

6

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