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The choice of business firms: a suggestion to the rulers in Eastern Europe
Pejovich, Svetozar |
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| Already memories of the costly failure of the socialist experiment are fading, the European Union is in the process of creating a bureaucracy which will replace freedom of choice in Western Europe and the Pope has expressed serious doubts about the consequences of the free market economy. In Eastern Europe pro-collectivist parties are gaining votes and in Serbia and Bosnia people are talking about the good old days under Tito. The attitude of present day socialists has been affected by the failure of socialism to develop efficient enterprises and they are currently rewriting their doctrine in a way that would make private property rights and socialism compatible. The purpose of this paper, writes the author, is to remind the political-scientific elite in Eastern Europe that the positive relationship between private property, the free market economy and economic development is not accidental and that this relationship creates strong incentives for individuals to engage in activities which promote that development. It focuses on the economic advantages of privately owned firms and emphasises the importance of keeping the state out of the process of choosing business organisations. |
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| Contributor: |
Free Market Center - http://www.fmc.org.yu |
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| Topic: |
Economy and Development |
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| Country: |
general |
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| Document Type: |
Position Papers |
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| Year: |
2001 |
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| Keywords: |
Black Market, Economic Reform, Private Sector, Property Rights, Smuggling |
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