2. Less Restrictive Regulation and Tackle Corruption
Some developing countries are held back by over-restrictive regulation, corruption and high costs of doing business. To attract both domestic and inward investment, it is necessary to remove these costs and create a climate which is conducive to business. To tackle corruption may not be easy, but it is often one of the biggest constraints to economic development.
Also, in the effort to reduce levels of regulation, it is important that useful regulations such as protection of environment aren’t discarded in efforts to attract inward investment. Otherwise economic growth may come at the expense of sustainable development.