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Old 06-14-2007
Ambiguous Ambiguous is offline
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Member Since: Jun 2007
Location: my own hell
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Re: Economic theory and politics.

Quote:
Originally Posted by Luap View Post
In the opinion of someone who really doesn't know much about economics or development, I think IMF loans and World Bank funding. Instead of making the conditions for the funds ones of rapid liberalization, they could be prolonged directives for the state to nurture certain industries while dismantling the barriers. There are problems, certainly: once the industry becomes a vested interest, it may have the influence to maintain government subsidies even when it is strong enough to compete, like Western agribusiness. Nevertheless, the social costs of the rapid policies (which I think are being gradually replaced by more moderate policies, though I'm not sure) are too great to resist some sort of reform.
Unfortunately the incremental nature of government is not hands-off. Just as an industry will try to keep the government money it depends on, the government will try to keep the control it's used to having over the industry.

It's difficult to achieve a lasseiz-faire economy under the guidance of government regulation.
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