Attend Spring Meetings on Development topics from Apr 17-21. Comment and engage with experts. Calendar of Events

Syndicate content

Add new comment

Submitted by Daniel Chachu on

The simple truth is that no government ever fully subscribed to the ideals of free market economics. This is because in practice it does not work and it only takes common sense to understand this. It would only be hypocritical for anyone to make us believe that developed country government have just had to intervene in the market as a result of the current economic crisis. The fact is that Europe and the US have always practiced a mix of free-market economics and state intervention to serve their social, political and economic aspirations and interests.

What has been unfortunate is their attempts to push a one-line free-market ideology down the throats of developing governments. This is where developing country governments have to learn. Indeed China provides a classic example. The state must allow the invisible hand to work but stand ready to provide guidance and indeed leadership when and where necessary.