Tanzi's final chapters concern the good that governments can do in making the market more efficient in a more complex world. A good example concerns the use of spectrum.
There is an international body that administers a binding international treaty on how spectrum should be allocated. That body is the International Telecommunications Union. The rules need to be binding because otherwise one country's communications build-out could jam communications from another country.
But a very large US company is trying to get around the treaty and create a new cell phone spectrum system which a) could interfere with GPS spectrum throughout the US and b) was not purchased from taxpayers in the normal way. (see here)
Lightsquare's behavior is unethical in my opinion. I hope it is not legal. But it does show how difficult it will be to create well-functioning markets in a globalized system.
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