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"Turning to a Market Economy" Chapter 11: Please respond to the following MAIN DISCUSSION QUESTION:
Many developing countries in the "Global South" turned to Socialism in the past as a means to solve their economic problems. Now, considering the evident failure of Socialism, many of these countries seek to create fast growth through the establishment of market (Capitalist) economies. Note: The Global South is also called Developing Countries, and includes low- and middle-income countries in Asia, Africa, Latin America and the Caribbean.
STUDENT TIP:
Capitalism (or a market economy) may sound simple but is actually complex, sometimes harsh, and requires government to create favorable conditions which are noted in your text in chapter 11. Here are some of the favorable conditions required in the five market economy policies that you can look for:
- free and unsubsidized prices,
- noninflationary currency growth,
- an educated workforce,
- plugging into world trade, and
- transparency to avoid crony capitalism.
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