Case study (9) Focus on Blend of Market and Interventionist PoliciesSyllabus: Discuss the view that economic development may best be achieved through a complementary approach, involving a balance of market oriented policies and government intervention.
Several of these case studies suggest both advantages and
disadvantages associated with market oriented and interventionist
approaches to growth and development.
Which approach is most appropriate and effective depends on
- the economic problem being addressed,
- the particular policy measure being considered,
- the state of the global economy,
- the stage of development that the economy is in and
- the nature of the political system within the country.
Clearly, both strategies can play an important role in bringing about growth and development. Countries that introduce policies drawing on both strategies may see their economies growing and developing more quickly than those that rely on single approaches.
Finally to illustrate this consider the following video produced by the World Bank looking at the economy of Morocco.
- Identify the economic problems that the economy of Morocco is facing.
- Describe the market oriented strategies that are being advocated.
- Describe the interventionist strategies that are being advocated.
- To what extent do you agree that combinations of interventionist and market oriented strategies should be adopted? Explain your reasoning.