Regulatory sandboxes in developing economies: an innovative governance approach

The report examines the development and impact of regulatory sandboxes in low- and middle-income countries. With a focus on understanding the viability and effectiveness of these innovative spaces, it provides a comprehensive analysis aimed at policymakers, international organizations and national authorities considering regulatory sandboxes for new sectors and technologies. Key insights include the emergence of regulatory sandboxes as vital tools for grappling with disruptive technologies, such as artificial intelligence, 5G and cryptocurrencies. Originally popularized by financial authorities in high-income countries, the adoption of sandboxes has expanded, prompting an investigation into their tangible benefits across various economies. The report highlights the need for a meticulous assessment of the readiness and potential impact of sandboxes and introduces the Regulatory Sandbox Maturity Assessment (RESMA) tool, which is designed to evaluate a country’s preparedness for such initiatives. Through case studies and interviews with public officials, the report emphasizes the importance of a clear policy framework, interdisciplinary teams and sustained efforts to ensure the success and impact of regulatory sandboxes. Furthermore, it stresses the significance of strategic partnerships and collaborative implementation to enhance the efficacy of these spaces for regulatory experimentation.