Open economies always do better

Here are some excerpts taken from an article on New Zealand Herald written by Mike Moore, a former prime minister and Director-General of the World Trade Organisation.


'Why is it that countries that should be wealthy, that have resources, have continued to underperform? Poverty is a man-made thing so we can fix it, but how and what works and what fails? What's the common denominator in success and failure?

Open economies always do better. Trade and competition drive up results and help to combat corruption, as well as allocate resources more efficiently. Private ownership, spread through society, works.

The tragedy of large-scale privatisation in countries such as Russia was the brutal insider wealth grabs. A free market without solid, trusted institutions, property rights, independent courts, a professional public service and democracy is not a free market but a black market.

Firm, predictable civil institutions create a vital factor to promote success. Trust. Trust in the courts, in contracts, is a serious issue. Good governance is fundamental.'

The full article.