This presentation briefly describes how markets work in developing countries.

1. How Markets Work?
The Case of Developing Countries
Dr. Vaqar Ahmed
Sustainable Development Policy Institute
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2. Outline
• Markets: developed Vs. developing countries
• What markets want?
• 10 bullets that govern markets
– In developing countries
• Result
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3. Markets: developed Vs. developing countries
• Security
• Rule of law
• Property titles
• Contract enforcement
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4. What markets want?
• Security of assets and profits
• Growth
• Certainty
– Of rules
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5. 10 bullets that govern markets
(case of developing countries)
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6. 1. Borrowing of ideas
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7. 2. Borrowing of Capital
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8. 3. Put capital to use
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9. 4. Search for biggest client - government
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10. 5. Turn formal
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11. 6. Initiate tea party with rent seekers
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12. 7. Work on playing tax, labor and customs
regime
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13. 8. Diversify in consumption goods
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14. 9. Get investment and trade licenses from
government – gain monopolistic powers
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15. 10. Go Open  Trade Internationally
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16. Result
Markets in developing countries are:
• Closed to poor
• Lacking level playing field
• Prohibiting graduation of small and medium
enterprises
• Distorting production and consumption
• Adversely affecting global trade
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17. Thank You
vaqar@sdpi.org
www.sdpi.org, www.sdpi.tv
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