1 thought on “International regulation – institutionalising systemic risk”

  1. Posted 11/10/2013 at 17:27 | Permalink

    Yes, Philip makes an important point that is too often completely overlooked. Central government planning and state monopolies (as well as over-powerful regulators) are high risk. If (I am tempted to say ‘when’) governments get things wrong it is often difficult for anyone to escape the consequences. So, for example, if the government runs a state monopoly education system (and now with a ‘national curriculum’ too!) and chooses to require teachers to employ an inadequate system of teaching children to read, many children’s schooling will suffer. If instead we were to enjoy a genuinely competitive school system, freedom to compete would reveal which methods of teaching children to read worked and which didn’t. Indeed there might even be something to be said for requiring ALL children to be able to read ‘adequately’ before they were permitted to leave school, though it would seem obviously preferable that they were actually able to read during their schooldays!.

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