2 ms·
By red-tape I mean anti-market/anti-business laws. I was born in Uzbekistan, I know how system works in such countries. You can't do business there without maki
by hal9000xp 10y ago
By red-tape I mean anti-market/anti-business laws. I was born in Uzbekistan, I know how system works in such countries. You can't do business there without making bribes. Countries like Uzbekistan intentionally create such laws which is impossible to follow and stay in business. Red tape decrease competition, increase favouritism which leads to pro-government monopolies which keep control over big chunk of market.
Free markets do require very strong laws but these laws should be:
1) In favour of strong property rights;
2) Equally friendly to new enterprises/small business/big business;
3) Lean, not over-complicated;
Basically role of the government is to keep highly competitive economic enthronement without favouritism.