• Success in development is primarily determined by government policies that shape the environment in which business operates. The principal contribution of business, then, would lie in exerting a positive influence on government policies.
  • For a development strategy to be perceived as successful and maintain political support, it must achieve at least four objectives: raising the income of the majority; mitigating inevitable short-term setback to the economy; limiting the conspicuous consumption of the rich; and giving hope to those who will remain poor for some time.
  • The only viable option for rapidly and consistently increasing the income of the poor majority is to enable them to earn more. They can only do this if there is greater demand for their labour, their primary source of income.
  • The best development strategy leaves the ownership and management of enterprises in private hands, and lets the market determine prices and distributions decisions. Government will only intervene to regulate or operate natural monopolies, provide compensation for market externalities and distortions, and reduce tensions that may arise if reforms were to cause extreme distress for the poor.

Op-ed: Business has role to play in plotting path to economic reform

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