The Hindu Business Line : State, market and competition

This refers to the interesting article "State, market and competition" (Business Line, November 16). Arriving at a `grand compromise' between the state and the market cannot be done using a precise formula satisfying all conditions and countries".

While absolute state control is at one extreme, total market control is at the other. Between these two lies the eclectic mixed economy, where both state and market determine a country's socio-economic destiny. India can be considered an early adopter and avid champion of this mixed economy pattern.

The next issue is how best to minimise the role of the Government (in the case of market system) and the role of market (in the case of command economy) while achieving growth objectives. Context is critical here. What worked splendidly for one country some 50 years ago need not work for us now.

Success lies in putting the solution to work through effective implementation or execution. On this front, India has fared poorly. For instance, China for long time was a state-controlled economy. But it moved more rapidly to the market system than India did. Market economies in the developed world too responded to social issues much more efficiently by incorporating such concepts as corporate social responsibility.

The source of India's strength lies in its basic character of opting for an and solution, even in places where apparently they are not possible. Today the whole world is aspiring for an and solution across socio-economic issues. But are we ready to leverage our unique and-ness for our own good and for the rest of the humanity?

S. Gnanaharan

Madurai

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