By Anna Tibaijuka
In the first two articles of this series, I argued that the role of government in a liberalised economy is not to replace markets but to ensure that they function fairly, efficiently and in the public interest. That principle applies equally to producers and consumers.
Whenever fuel prices increase, public transport fares rise or electricity tariffs are adjusted, the public reaction is almost always the same: government should intervene. Protecting consumers is undoubtedly a legitimate responsibility of the State. The more difficult question is how this can be achieved without discouraging investment, reducing supply or creating shortages.
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Rethinking the state’s price control role amid liberalisation – 1
