The imbalance of the global economy and the threat of the possible double dip recession force to reconsider the role of economic policies. Like never before, functions of states to identify key guidelines of development of domestic economy should be reassessed in order the private and public interests were balanced along with restitution of domestic justice and efficiency.
The main driver of economy is demand. Thus, let’s review where the demand comes from. The criterion which may characterise the propensity to consume and determines the growth of economy is profit. In addition, it is assumed that the greatest efficiency is achieved in the market economy. However, the circumstances of perfect competition create superior conditions for domination of monopolies those dictate prices of goods and services. Consequently, the trends of global economy are also under their influence.
Thus, I consider how important the states’ economic policies are nowadays. Moreover, how long it could take for the governments of states to retrieve their authority and intellectual creativity, rethink the concepts of the states’ economic policies so that the global economy distortions were reduced and social justice recovered?
About Me
- Asta Pravilonytė
- Every manager can call him or herself a good strategist if he or she only works within an environment that is favorable; however, it is only in times of stress that one truly learns what one's capabilities are!
Dear Asta,
ReplyDeleteInteresting approach. You mention the disadvantages of pure capitalist systems which lead to monopoly and higher prices/poorer service. You mention also the lack of creativity of the political world to design a better balance between private sector interests and the public interests. It's not an easy debate and there is not a simple solution. One element I always add is the co-operative movement. This is where private sector initiative moderates the self interest and take into account the interest of the community or the general public. I'm not telling that this sceme works for all situations but it can certainly help in a number of situations. Also big organisations have recognised the value of this concept. 2012 will be the year of the co-operatives.
Kind regards
Bernhard Ardaen see Linkedin