FREEDOM OF EXCHANGES: Policy measures to prevent the exchange, constrain economic growth

Free exchange is a form of social cooperation, which allows partners topossible to get more of what they want. In the marketsystem neither buyer nor the seller can not be compelled to share.Personal gain is the motivation for the transactions.As noted above, the exchange of all of society benefits. So whengovernment sets the exchange barriers, it thereby inhibitseconomic development of their country.Exchanges are limited to a variety of methods.First, many countries impose rules that limit access tovarious economic activities. If you want to start theirbusiness, you have to fill out a questionnaire to seek permission from the variousdepartments, to prove that you are qualified to confirm that you haveadequate funding and there are many other tests that are requiredsupervisory authorities. The officer may deny you in your application,as you do not agree to give him a bribe, or to make a contribution to the state party,that it represents.Peruvian economist Hernando De Soto in his revelatory book"Another way" (Hernando de Soto, The Other Path) gives the case wherePeru's capital Lima, five men took 289 working days to completeimplementation of all rules established for the opening of a small legala garment company. During this time they demanded twelve timesbribes, including what to get permission to operate"Legally." If you receive funding from foreign sources,bureaucratic fence becomes more dense. Needless to say,that such measures suppress competition, encourage corruption and pushdecent people in the shadow, or as it calls the De Soto, "vnelegalnuyu"ekonomiku.Vo Secondly, the exchange is hampered when the rule of law, having equalforce for all, giving way to a discretionary (applied separately to theeach case) political power. In some countries,considered to be routine adoption of legislation providingpublic administration substantial freedom in the interpretation of the law.For example, in the mid 80s by the customs officials in Guatemala werepermitted by temporarily remove tariffs, if "consistent with nationalinterests. "Legislation of this kind is an open invitation togovernment officials in extortion. It createsuncertainty in the regulation, making business more expensive andless attractive occupation, especially for the honest people. The system of lawsmust be accurate, unambiguous and non-discriminatory. OtherwiseIf it becomes a major obstacle to obtaining benefits from the exchange.Thirdly, many countries have resorted to price controls. If the priceProduct officially recorded above-market shoppersbecome smaller the amount and extent of the exchange are reduced. OnOn the other hand, if the price is fixed at a level lower than the market, thedeclining production and, consequently, the exchange. In terms of finalthe result is not much of a difference, which pushes the price of government control- Up or down, and both lead to a reduction in trade volumes andbenefits of production and exchange.The exchange is effective, it helps society to more profitable cashresources. Policies that are forcing marketers to overcomea variety of obstacles that are usually antiproizvoditelnymi -even when they are dictated by the interests of national securityindustry. If a country wants to realize their full potential,should minimize the constraints on trade andincreasing costs of doing business. The ability to provide services
that others would like to get - this is powerful evidence thatthis activity is productive. The market is the best regulator.