This archive report was first published on 6 July 2021.
On July 6, 2021, a Bill was proposed in Parliament to establish the Institute of Certified Managers and provide registration and regulation of the standards and practice of the profession.
The proposed law aims to professionalise the management discipline, but it raises questions about who exactly a manager is and what are the boundaries of managerial knowledge.
Professional associations have been established for various professions, including human resource management, accounting, law, medicine, and architecture. These associations help practitioners gain recognition and control of the market, but they also have the potential to create monopolies and stifle competition.
The Certified Managers Bill proposes consulting the Cabinet Secretary to determine eligibility for different categories of membership, which has sparked concerns about the potential for self-interest and protectionism.
While the intentions of professional associations are good, they may suffer from the ravages of monopoly and the laws of economics. Without competition, members may relax and enjoy the protection, reducing the supply to raise the price of services.
Empirical evidence is needed to show that such associations have improved service delivery. The legalisation of professions has gone hand in hand with the establishment of new schools in the public sector, but this may not necessarily lead to better service delivery.
The mushrooming of professional bodies raises questions about who will seek legal protection or monopoly next. It may be cool to belong to such an association, but they stand in the way of competition that spawns innovations and adds dynamism to the economy.
