Tuesday, February 1, 2011

Make that republic institutions work for resource-poor people

Mr. Arun Maira wrote on 26th January, 2011 that: 
  • One school of thought proposes that the quality of public services will improve by handing them to the private sector, which, with its focus on efficiency and profits, will cut out the waste. The same school of thought also believes that environmental damage is caused by a “tragedy of the commons” when no one “owns” the water, the forests, and the atmosphere. It believes that creation of private property rights (including tradable rights to pollute the atmosphere) will induce human beings to behave more responsibly. 

  • The basic premise of this school is that a market in which self-interested persons can trade, will always produce good outcomes. It believes that institutions for progress must be founded on principles of private property rights and competition.

  • Institutions are the wheels on which the cart of progress moves. The need to tune up government is evident. And the need to redesign market-and-property based institutions to meet challenges of inclusion and sustainability is evident too: in increasing public interest in new concepts of business accountability, social entrepreneurship, producer companies, and so on.

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