This report argues market failure needs to be overhauled and government action is necessary.

Key findings:

• Government action is not just about fixing temporary problems, it is about continually designing and redesigning markets themselves. 

• Economic growth is much more variable among non-democracies than among democracies. Ninety-five per cent of the worst economic performances over the past four decades have taken place under autocracies.

• Regulation is another source of information to business about preferences among the population and is as valid as signals from the marketplace.. 

The case for markets and the limits of traditional market failure need to be re-evaluated.

We need to become more savvy and less ideological about what can be expected from any market and markets as a system.

Authors:
Will Hutton and Philippe Schneider