Palm | Kelapa Sawit

Should govt or shoud not govt involves to the market?
1. clasic economy: free market
2.maynard keynes: in many ways, govt must control the market.
3. neo clasic; derived by washington consensus:
-fiscal discipline
-redirection of public expenditure
-tax reform
-interest rate liberalization
-competitive exchange rate
trade liberalization
competitive exchange rate
-trade liberalization
-liberalization of FDI
Privatization
-Deregulation
-Secure property rights

there are 3 slogan of neos by washington conss: Stabilize, liberalize, Privatize.


*an example of the work of neo -clasic: the east asia miracle ( indonesia,malaysia, south korea, etc..) which were fault.
the report provided by john page( WB consultant): newly industrialize economies of south east asia.

the conclusion:
state is the most powerful institution to chanel and tame the power of market ( Boy