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Why are markets considered as unsuitable for promoting development?
The process of establishing a market system frequently includes radical reform which produces both winners and losers. Frequently the burden of adjustment reduces unequally on society. For illustration:
• Getting prices right
• Macroeconomic stability
• Liberalise or open up trade
• An attrition of traditional community values and acceptance of an alien western culture which values the maximisation of profits and consumerism by maximisation of personal consumer welfare
• Larger disparities into income and wealth while the benefits of growth are unevenly distributed. Raised income inequalities can cause social alienation and exclusion
• Growth and development may be untenable.
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Comparing Production Possibilities Curves
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