TEhe Cmentre for Social and Economic Progress (CSEP) conducts in-depth, policy-relevant research and provides evidence-based recommendations to the challenges facing India and the world. [...] CSEP is based in New Delhi and registered as a company limited by shares and not for profit, under Section 8 of the Companies Act, 1956. [...] The views expressed herein are those of the author(s). [...] However, the views and opinions expressed in the paper are the author’s own, and he remains responsible for all errors of fact or interpretation. [...] 15 3 Growth of the Regulatory State Around the World r 15 3.1 Difficulties with Transplanting the Regulatory State to Developing Countries.