1 / 3

Market-led development

Market-led development. Main claims Minimal government Provide order, protect property rights, enforce contracts, provide basic infrastructure, provide basic education Government should not finance or own firms Government should not use taxes to manipulate firms’ behavior Free markets

zoltan
Download Presentation

Market-led development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market-led development • Main claims • Minimal government • Provide order, protect property rights, enforce contracts, provide basic infrastructure, provide basic education • Government should not finance or own firms • Government should not use taxes to manipulate firms’ behavior • Free markets • Firms should be free to enter/exit the market • Prices should be free to reflect supply and demand • Government should not provide subsidies • Free trade Goods should flow freely across borders • Government should not employ tariff barriers, other obstacles to free trade • Government intervention inhibits growth Government intervention leads to unproductive rent-seeking

  2. State-led development • Main claims • State-led industrialization is key element in establishing an independent national state and economy • Active government • “Infant” industries require government assistance • Protection from competition • Assistance with capital accumulation • Assistance with technology acquisition • Technocratic bureaucracy • Effective government assistance requires competent bureaucracy • Historically conditioned, hard to build

  3. Development strategies • Definition • Sets of government policies that • Affect the domestic allocation of resources among industries and social groups • Shape a country’s relationship to the global economy • ISI and EOI are building blocks of development strategies

More Related