An interministerial task force set up to study the restructuring of the nation?s regulators, led by the government affairs unit of the Office of the Presidential Chief of Staff (Casa Civil), has found two simple reasons to propose the abolition of Ancine, the national film agency: it?s the only regulator created by executive order and it doesn?t meet the criteria defined by the task force to justify the existence of regulatory bodies.
From the economic standpoint, the task force has decided, regulators are needed only for industries with (1) information asymmetry between consumers and producers; (2) natural monopolies; (3) significant barriers to entry; (4) negative externalities (relevant social costs); and (5) a need to promote universal access to service.
Most of these principles could apply to Ancine provided its remit were far broader instead of being restricted to the motion picture industry. There?s also an administrative issue: All the other agencies are represented on the task force by the ministries to which they?re subordinated whereas Ancine reports to the Chief of Staff. This Office feels it can?t stand up for an industry with which it has no official connections. The Culture Ministry could perhaps have done that but isn?t represented.
The proposals drafted by the interministerial committee will be sent to President Luiz Inácio Lula da Silva, who commissioned the study. They will include the transformation of Ancine into a quasi-autonomous body governed by ordinary legislation that doesn?t guarantee tenure for directors, as does the law on regulators. Another proposal will be to reengineer Ancine?s organizational structure.