Why free financial market is the only way to escape poverty

By Someshwar Nayak*

One way out to escape poverty is to push people somewhat ahead of poverty trap cycle, so that they can easily escape out of such cycle. So what’s the reason that we are still lingering over such vicious cycle?

One basic and robustly driven reason among plethora of reasons is central planning and restrictive free financial market which prevents plenty of poor skilled human resources to show their skills in market and that too because of inefficient incumbent and cronies occupying space by resorting to favouritism in financial market.

Dr Raghuram Rajan says that the markets are a source of competition, forcing the powerful to prove their competence again and again. Since a person may be powerful because of his past accompolishments or inheritance rather than his current abilities, the powerful have a reason to fear markets.

And there is a strong fragrance of truth in what Dr Rajan is saying; what his precise observations portray is that if we are in the community with strong financial access then each one gets nearly equal opportunity to show their skills and innovations in market and for each and every element this is what market should be like, in such market there is no lord and you are not some slaves of some nonsensical politicians.

Corruptions are comparatively low in such market as there’s no lord to spill such idiocy. State of flunkeyism is low. And this is what we need as an individual; we deserve each and every goddamn rights, we deserve self respect irrespective of any hierarchy levels.

Even observations on the ground level portray plenty of brains having great skills and innovating techniques are getting wasted due to poor dissemination of information and poor access to finance. They don’t have money to execute such skills, on the contrary they end up preparing for irrelevant exams for job security; eventually they end up their smart brain which could have been used for development of the nation. At the same time, offsprings of incumbent and politicians with nonsensical and illogical brains are promoted.

Harsh truth is they are future of the nation… it would be better for us to understand this as soon as possible, it would be better to understand that there is no future with such future. We are destroying tons of human resources everyday and then we blabber about better nation.

So transparent point is that free financial market is the only way to escape such a pathetic situation. James Buchanan associated with Virginian School wrote really robust in his book “Calculus of Consent”, he simply said that separate individuals are separate individuals and, as such, are likely to have different aims and purposes.

We can see that not everyone has the same nature then how can we expect same outcomes from everyone, like we really own healthy and innovative human resources but still we are dithering to escape, reasons are quite simple and transparent that we don’t have proper access to finance because of restrictive free financial market.

So theres only one way out to escape such a pathetic poverty, and that is solely free market. Trace the history and we can easily observe that movement towards market economy coordinate was the time when prosperity and wellbeing peeped through the soul of the nation.

*Economics graduate, University of Delhi

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