Quote:
Originally Posted by Luap
I agree that such a radical change from a command to a market economy will cause problems, and history shows that. The IMF's "conditionalities" for loans have required rapid and intense deregulation and privatization, despite the evidence that this "shock therapy" results in corruption and suffering. In other words, the complete removal of government from the economy, at least so quickly, is hugely problematic. I was just raising the point about the Third World in response to your advocacy of a complete laissez-faire system, of which I'm very skeptical.
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I am of the opinion, that better public policy would include inducing less developed countries (with command economies) to upgrade their infrastructure, before deregulating markets.
Modern infrastructure would facilitate access to markets and could reduce some of the problems associated with restructuring from a command economy to a market economy.