Let me explain what I meant. You go to a nation with very low human capital indices, absolutely no private sector and very poor organisational culture. You go there and say - you must privatise and privatise by this time tomorrow!So, if the market is not the best answer out of a universe of tough answers, and i say this genuinely, what then is the answer? I have been seriously looking for answers, to the human condition, in the middle east, central america, europe, and of course America.
That is exactly what IMF/World Bank shock therapy was all about. In Russia, KGB gangsters took over the commanding heights of the economy. In Nigeria, former generals and their cronies took over the economy. The end result of this process is not a strengthening of institutions or a rise in living standards or even an efficient market, because there was no market in place to start with.
That is exactly why the Thatcher/Reagan consensus was such a bone-headed concept and the effects are still with us today.
On the other hand, crossing the river by feeling for the stones gives both operators and regulators ample to learn from their mistakes before going live.
I prefer that you take a concept, try it out in a test area, if it works there apply it to the rest of the country. If it doesn't junk it. Not all cultures adapt easily to capitalism, not all cultures are entrepreneurial.
Economic policy is more of an art than a science.
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