Using Regulatory Sandboxes to Support Responsible Innovation in the Humanitarian Sector

Area of Science:

• Regulatory innovation
• Financial technology
• Humanitarian aid

Background:

• Regulatory sandboxes are emerging as a tool to foster innovation across sectors like finance, telecommunications, and energy.
• These controlled environments allow testing of new business models and technologies with relaxed regulations.
• Many operational or planned sandboxes are located in countries hosting displaced persons.

Purpose of the Study:

• To explore the potential of regulatory sandboxes for promoting responsible humanitarian innovation.
• To review the benefits, risks, and challenges associated with deploying sandboxes in the humanitarian sector.
• To consider how humanitarian organizations can engage with regulators via sandboxes.

Main Methods:

• Literature review on regulatory sandboxes.
• Analysis of sandbox benefits and challenges.
• Reflection on humanitarian sector engagement with regulatory bodies.

Main Results:

• Regulatory sandboxes are increasingly adopted globally, with over 50 in operation or consideration by July 2019.
• The sandbox approach offers benefits for innovation but also presents risks and challenges.
• Potential exists for sandboxes to catalyze innovations serving those affected by humanitarian crises.

Conclusions:

• Regulatory sandboxes present a promising avenue for responsible humanitarian innovation.
• Careful consideration of risks and stakeholder engagement is crucial for successful deployment.
• Adapting the sandbox model can help address the needs of displaced populations and those in crisis.