Washington, D.C. : Cato Institute, 2004. — vii, 274 p. : ill.
This book is based on two beliefs. First, economic growth is essential for reducing poverty in third world or developing countries. Second, an efficient, dynamic, and growing private sector is the only way to increase the rate of economic growth. This book then takes the next step and asks what governments can do to help develop the private sector.
The main conclusion is that the government often does too much. Many government programs and policies designed to help the private sector actually impede its development. The major reasons are the low level of ability or competence in most government institutions, the high level of corruption, and the influence of special interest groups. Though private markets often fail to provide perfect outcomes, the ability of the government in poor countries to fix these failures is limited.