|
The private sector is the engine of growth, but the government must provide the institutions that support entrepreneurship and investment, while restraining the excesses of capitalism—inequality, instability and environmental damage. Entrepreneurship thrives under a strong state, but one which supports rather than predates on business.
The most rapid growth in the world economy, particularly in Europe and the United States, occurred in the 1945-1970 period, when countries dismantled the protectionism of the 1930s, gradually liberalized world trade, but also strengthened social safety nets and regulatory systems, in particular of the financial system.
The Reagan-Thatcher-led turn towards more radical free-market liberalization, deregulation and privatization policies has been marked by slower growth and much greater inequality than the earlier post-war years. East Asian growth has also featured an eclectic mix of liberalization and government intervention, in countries such as South Korea and China.
Professor of Economics at Swarthmore College, Stephen Golub
Respond
|
