Chapter I reviews the basic principles that underpin the development of sound regulatory policies and institutions. Chapter II enumerates and evaluates the rationale for economic reforms and the introduction of competition in the provision of infrastructure facilities and services, the justification for government intervention, and the main instruments and institutions for creating and regulating competition and monitoring the implementation of economic reforms. Chapter III examines key issues such as price regulation and developments in globalization and international competition. Chapter IV describes regulatory practice in the transport industry. Finally, Chapter V provides recommendations for regulatory policy and its implementation.