immense struggle of twentieth century between liberty and totalitarianism ended
with freedom and consistent model for national success which primarily focuses
on freedom, democracy and free market. In the 21st century,
countries who committed to guard fundamental human rights and preserve
political and economic freedom will be capable of assuring people their future prosperity
(MacKinnon, 2013). One of
the prominent examples is United Nations where people have freedom of
expression, right to educate their children, own properties and acquire the
benefits of labor. Today United Nations enjoys the leading position of military
and economic strength and political influence (Bush, 2002). Instead of only using their power, they
are maintaining a balanced relationship between power and human freedom.
relationship between democracy and free market is more of allies instead of
enemies. The economic growth which is supported by free trade and free market
develops higher occupational opportunities and incomes (Chua, 2004). It helps people improve their
lives and fight against corruption. The democracy and free market all together
enhances economic and legal reforms.
the name suggests free market act without any control of government. The
private agencies are free to work like the way they want without any
restrictions from state body. The free market and democracy are interlinked
terms and both of them aim to give power to public (Leys, 2003). However, in free market everyone is
allowed to market their products on the price they want which can cause
instability in economy. Here government control is required to stable the economy
and reduce inflation. Political economy relies on the tradition that explores
the relationship between economy and politics. It can also be viewed in terms
of market economy that has an impact on our everyday life (Luhmann, 2000).
legal and regulatory policies encourages business investment, creativity, and
commercial activities. The tax policies particularly with reasonable taxes can
enhance the incentives for work and investment. The strong financial systems
help the State to have the most effective use of capital. The efficient fiscal
policies supports business practices and increase investment in health and
education. More importantly, they improve the lifestyle and skills of labor
force and overall population. The free trade offers great development for
growth and exchange of technologies and ideas to enhance the overall
productivity and prospects. From the above mentioned approach, we suggest that
the balanced command and control by hands of government is the best way to
promote prosperity in the emerging markets, industrialized nations and
developing countries (Bush eta, 2002).
growth and political stability comes hand in hand. Any uncertainty associated
with an unstable political environment will eventually effect investment and
pace of economic development. On the other hand, poor economic growth can
collapse the government and create political unrest.
initial arguments were mostly in favor of public ownership when it comes to
market failure. They argue that the noncompetitive conditions under private
agencies will eventually result in decreased average costs in the relevant
demand in the market (Rodrik, 2011).
The presence of more than one agency is not justified for the efficient
results. There is a huge possibility of exploitation by the monopoly of private
owners which creates the need for public ownership. These arguments were used
by several scholars for quite a long time such as Lewis and Allais. The role of
efficiency in the firm has revealed that efficiency loss in public ownership is
negligible. However, in other cases they are higher than the profits that can
be achieved by solving market failures. On the other hand, many studies argue
that private ownership is a better approach than public ownership. In the
competitive markets, the benefits of public ownership were doubtful.