It has less to do with the regulatory environment and more to do with cultures that are accepting of corruption. Government regulators are often part of the corruption in weak cultures.
For a country that is insanely rich, it’s sad to see poor and middle class being screwed over at every turn of their lives. Pharma , healthcare, crony capitalism, bank crisis , false flag wars … the list goes on.
The reality is that poor countries have to cut corners due to lack of resources and people turn their blind eye because “something is better than nothing”.