Is it better for a developing counrty to develop through state intervention or a free market economy?

Question

Detailed answers please x

Answer 1

State intervention does not develop economies; it prevents development. The primary problem with third world and developing countries is that they are infested with "state intervention".

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.

Answer 2

We all know the governments should opt practicality rather than ideology. But thats beside the point. Empirical evidence of how an economy can benifit from operating under a free market environment, look over to China, Russia, South Korea etc (although there's a limited extent to which those economies are 'open'); the theoretical arguments against state intervention, i suggest you start with Milton Friedman's literature (Capitalism and Freedom, Free to Choose, either one would answer your question).
Hope it helps.

Answer 3

I go with balancing state invtervention, and free markets because the economy gotta fit the mold of society, and culture. First, economies that had fixed exchanged rates tended to grow faster histroically. For example when America industrailize they had 400% traiffs on forgien goods coming in. Yet, the politicains know that traiffs are bad for the comsumer, but the goverment knows they cant let procuders out of business if people jobs are at stake. Free Markets approach to banking, and trade is good when your economy has the ability to handle it. China, South Korea had very closed ecomomies to trade, but they encourage foreign invesment by giving tax cuts to produce thier goods in thier country to export overseas. Merchantilism works in a poor country at first to consolidate industry, tranasportation to lay the network to build the economy. Yet, Merchantilism is inefficent economically, but its better than depending on hot money banking to finanace projects since the goverment has less control of the where the investments are made. In addition, hot money investments are not needed when the country development is at really low base. Like African countries, and the level developement of the country should determine what adjustments are needed. One-size does not fit all here, and economic is a science with exceptions to the rules because humans are rational to a point.


Also, Communism or Chavez style economics is bad too because the state should not own telecommunications, ulitites, but also Neo-liberalism idea is bad at times because the people pay taxes to the goverment , but the goverment has no choice under world bank rules to pay the interest on the debts they have. I figure its the devils of the details of poor countries to think about more than anything. Kenslysan style economic has more human face to it than Friedman because the goverment sometimes has to interveune on behalf of the people that elect them that a representive goverment job.

Untied states does not play by Freidman rules that is given because Uncle Sam pays farmers to overproduce, and also buys up production as a way to make food cheaper for the American people. Subsidies are evil yes, but i think know 3rd world countries should study countries like China, South Korea, Untied States to figure out how to get a higher base of economic developement espeically Africa.

Answer 4

Friedman was a toy rat for fatcats to play with. Capitalism is communism for the rich, who do not create jobs, but intimidate using mind-control.

Socialism is state capitalism. It is a fraud invented by the children of the aristocracy. So you will get no published solutions until you realize that the medieval hereditary power never went away. Titles were abolished, but until inheritance and all other birth privileges are abolished, we will inevitably sink into decadence.

Some solutions independent of Death Wealth are mandatory unions, ownership by the employees of the businesses, and paying salaries plus free tuition to those who test high enough to go to college. Talent must be paid up front to develop itself. As it is now, we are eating our seeds.

Answer 5

The Democrat Legislature in my State of Ca. have regulated and taxed over a a million/2 trillion of economic corporation sales out of the State. They sent a contingent to Nevada to attempt to speak the various greater beneficial employers to return to Ca. They instructed them that it extremely is replace into just to costly to do corporation in Ca. Ca. so a procedures as being a corporation friendly State is rated using fact the least friendly in the country.Our taxes are continuously being raised however the State isn't able to fulfill it extremely is State Constitutionally mandate to our voters. The Democrat Legislature merely decrease investment to our public faculties and raised training to the State universities. Our gas taxes which could choose for street restoration and throughway development have been placed into the final fund an spent. Our roads and freeways at the instant are funded via bond measures. The State Lottery replace into meant to bypass to the faculties besides to what our property taxes provided. instead the Democrats deducted from the final fund the quantity that the lottery delivered in. whilst "Welfare to artwork" replace into exceeded in ninety 4 the Democrat Legislature refused to bypass alongside with it. we've the biggest welfare inhabitants in the country. Ca. spends between10 and 15 billion a three hundred and sixty 5 days merely on welfare reward to unlawful extraterrestrial beings, yet our infant's practise has to go through to grant for people who have not have been given any criminal ideal to be right here. i might say that neither artwork in Ca. using fact we not have a unfastened marketplace economic equipment using fact of too plenty government administration and the Welfare State has broken us. Ca is popping every physique into the "deprived". The previous asserting applies right here. "Socialism works until eventually you run out of every physique else's funds"

Answer 6

state intervention - that's how Japan and Korea and others did it.

Answer 7

I think we need a chicken in every pot and more peanutbutter and banana sandmuches'.

Thang ya very much.............