Regulation, Development, and Growth Tradeoffs

There are more things to also consinder. A less developed country is typically less developed in

all manners, especially laws and regulations. In low regulatory countries where

the industries (and the state) are less developed might have rapid growth, but that is partly

due to lack of regulations. They can build wherever they want, whatever they want, and typically also

have a lot of labour they can exploit because a less developed country might also have a massive labour

surplus. Once a country becomes developed, regulations exist to protect existing

development, thus growth needs to be slowed down to make sure any construction brings

in net growth. Also, there is a more of a burden on developed countries when it