The best entity wins leading to economy wide efficiency. •  Free enterprise and competition combats prejudice and social biases. o o  Dalit entrepreneurs Direct benefit transfers  BIS central bankers’ speeches  1  •  Government and regulators are needed to set the rules of the game and enforce behavior. Biased government/regulation distorts the playing field.
Not that there should be no handicaps but not unequal handicaps. o  •  Work I did on entry regulation: Italian firms small. But low entry. Why? Work I did Rajan, Laeven and Klapper (2006). Italian firms need greater size to overcome fixed costs of entry but grow more slowly. Slower economic growth.