Market-Capitalism: What’s in Store for Eritrea?

Eritrea Development

#Government plays active role in securing the #RightOfThePeople to share the #NationalWealth, securing the best value

By Berhane Woldu

Eritrea’s economic development strategy is no different than what the USA and Europe did in their early development strategy and ongoing regulated market economy. They were protectionist with government directed economy and huge subsides. Ann Markusen, in Dismantling the Cold War Economy, talks about the excesses of the Pentagon system and the new global economy.

The US policy on industry like all industrial western countries is based on the assumption that private enterprise can survive only if there is extensive government intervention.

Government needs to regulate disorderly market systems, protect private capital from destructive effects of the market system and to organize a public subsidy for targeting advanced sectors of industry.

In Europe major companies and finical institutions are owned by the governments and no “free market exists.” Adam Smith describes “The Invisible Hand” as the market regulator.

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