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This paper by Scott Jacobs shows how European countries can achieve — in a progressive, careful, and rapid manner — a low-cost, low-risk regulatory system that supports competitiveness and effectively protects public interests. Mr. Jacobs delivered this paper at the conference, “Business Environment Reform in South East Europe: Progress and Challenges,” sponsored by the Government of Croatia, FIAS, IFC/World Bank, and UNDP on 25-26 September 2007 in Zagreb.