Limitations of Market Reforms in a Neo-Liberal World Economy

Abstract

A number of sequential events spanning the last fifty years has given proponents of capitalism, advocating minimal state involvement in the economy, decisive victory, not only over socialism but over heavy government engagement in the economy The main contention of this piece is to prove that the failures of government and public sector did not necessarily make a strong case for the market reforms which was being promoted in SSA and other transition economies. In fact what is often distorted or misrepresented as the successes of unfettered markets are on closer examination evidences in favour of strong government and developmental states which have been able to overcome the so-called ‘Weingast Paradox. Drawing from the historical experience and the successes of a few countries in Far East Asia in addition to the successes of China and India, we make strong case for government-driven economic development after policy-makers have been subjected to the constraints of political and economic institutions.

DOI: 10.7176/DCS/9-5-03

Publication date:May 31^st 2019