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Re: Free trade: a debate

Please help make the Manifesto better, or accept it, and propagate it!
At 06:25 PM 2/20/01 -0800, "prakash  chandrashekar"
<prakash7uc@rediffmail.com> wrote:

>venugopal <gvvs@nird.ap.nic.in> wrote:
>From:venugopal <gvvs@nird.ap.nic.in>
>This  means favouring some players and penalizing some
>other players in the present economy. Therefore we have to begin with
>the understanding that free markets are not a solution and there are
>many areas in which government needs to control, by learning from the
>mistakes of the past.
>The GOI is needed only for definition and implementation of property
>rights. People will then define their own trade-offs between pollution
>and development.

Thanks Prakash. From my very intimate (and very senior) experience in
Indian government (1982-2000 in the IAS), I believe Mr. Venugopal has no
idea of the problems of data collection and analysis involved in trying to
create a substitute to market systems, and of its tremendous ability to
distort incentives, prices, everything. In addition, if I may add,
bureaucracy is just not trained nor equipped to understand what they are
talking about. Those with a bit of training like me (a Ph.D. in Economics
from USA) are kept outside the mainstream departments since that is where
political processes including corruption are most at work and they do not
want any analytical discussions.

Dear Mr. Venugopal, Please give the market system a chance. Reading Coase
is a good starting point in terms of dealing with externalities. Government
should do what it is meant to do: maintain property rights, provide law and
order, etc.


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