Article at a glance:

Regulation that's good for competition

Market economies need regulation to facilitate fair competition and to protect consumers, the environment, and vulnerable workers from unfair practices. Too often, however, regulation has the opposite effect: hindering competition and protecting some groups at the expense of others, which is what happens when, for example, minimum-wage regulations limit the creation of jobs for low-skilled workers. A report by the McKinsey Global Institute highlights the damaging effects of three types of overzealous regulation and offers guidelines for getting it right.

The take-away

Poor regulation is the main factor limiting productivity and growth in economies all over the world, particularly in developing countries. Regulators should protect people rather than jobs and refrain from trying to pick winning companies or technologies.