AIM Professor and Distinguished Fellow in Development Management Dr. Vinod Thomas recently wrote a piece on deregulation and its repercussions on a country’s economic success on the Washington D.C.-based news publication The Hill. Excerpt:
Reforming unnecessarily onerous government legislation can boost economic performance. But getting rid of essential standards for health care, worker safety and environmental protection can end up hurting people’s wellbeing and slowing long-term growth.
All deregulation is not synonymous with a country’s economic success. As regulations have a socioeconomic rationale, removal of a regulation or the introduction of a new one should be transparently tested by a cost benefit analysis from the social viewpoint.