The market economy: No panacea for developing countries

The controversy about the pros and cons of state interference in the economy has become much more heated in recent years. In the industrialised countries this can be gauged from the debate about deregulation and privatisation. The proposition that the more market-oriented the economy the more successful it will be is also relevant to policy in developing countries. The following article shows, however, that there is no simple, universally valid link between a country’s economic system and its achievements in the development field.