Economic freedom can only ensure prosperity

NEW DELHI: Repression of economic freedom has made the countries around the world – especially the Asian countries – suffer, according to a prominent economist.

"Economic freedom can ensure prosperity, though political system is also key to ensure the prosperity," according to Razeen Sally of the Lee Kuan Yew School Singapore.

"Economic order has been cartelised in line with political order confusing the people and distorting the market," he said, while giving a keynote address during the 'Asia Liberty Forum: Advacing Liberty and Markets in Asia,' organised by Centre for Civil Society (CCS) and Asia Centre for Enterprise, in New Delhi, today.

The political reforms – both liberal and democratic – together with active market reforms – land, labour and capital – will help countries propel towards economic prosperity, Sally said, adding that the countries that saw some market reforms in some point of time also failed to prosper because of internal market distortions. "However, more individual freedom will help market reform for prosperity."

The structural and institutional reform will help market economy expand, he added.

Explaining the cause of global financial crisis, the prominent economists said that lack of market reforms and artificially cheap credit coupled with wrong incentives caused the crisis but not the liberal market policy. "Ensuring more market competition is the only cure – which only the liberal market economy provides – to avoid such catastrophe."

After the global financial crisis, the Asian countries are emerging fast due to increased expansion of individual liberty and economic freedom, Sally added.

Some 300 believers of individual liberty and values have gathered in New Dehli from January 7 for the three-day to carry forward the values of liberty that is natural in the human beings.

Opening the session in the morning, Partha J Shah of Centre for Civil Society, India said that liberals believe in individuals and aim at building a system to achieve individual values. "But its possible only through rule of law and free market," he concluded.

The day also witnessed various sessions on 'From Aid to Enterprises,' 'Language of Liberty,' and 'Asian Responses to the Global Financial Crisis,' apart from distribution of Azadi awards to the Indian journalists for their contribution to the change in the society.