The government will be responsible for protecting private life of its citizens and property (Grant & Vidler, 2000).
Market and Competition Forces: the country's economy should be designed in such a way that it will promote competition. This is because competition means a fair deal in obtaining results. The government should increase sellers and buyers in the market because this would promote competition thus increasing the quality and efficiency. With competition, the country will be able to control and manage different functions of its economy (Grant & Vidler, 2000). Demand and supply are the prime market forces determining the production of a country produces and the suitable ways to do so.
Market equilibrium, price and output, are determined by market forces. Therefore, I would recommend that any least developed nation to emphasize on freedom of markets and individuals. Such an economy will give priority to freedom of individuals over the society thus promoting self-interest, which may provide and guarantee maximum welfare of the nation. In this context, individuals and businesses have the freedom to make a choice thus freely leaving and entering the market. Such an economy, labor will have the freedom to choose its service while maximizing its output (Hyman, 2011).
I would recommend any LDC in Africa to take a gradual approach in mailing reforms, in its policymaking. First, the country must avoid any serious disruptions to the economy. If the adjustments turn out to be deficient, the country can modify...
Through implementation of those policies that had the potential of being successful, political support for further reforms will be built in the country. This will be particularly necessary for social unrest and political conflicts that could hinder the whole process of reforms. For these reforms to be effective, it would be necessary for the country to set up new legal and regulatory frameworks, build new institutions and offer training to personnel so that they can become familiar the new practices (Grant & Vidler, 2000).
Conclusion
An economic system comprises of industries, means of production, individuals and a medium of exchange. The medium of exchange is necessary in selling and buying of services and goods. Different forms of government have different ways of controlling these factors. Assigning of property tax in an intergovernmental system of finance is the most critical issue for a least developed country. This concludes that the most vital function is for the government to have the autonomy to make other tax policy decisions on the structure of the property tax.
References
Bahl, Roy, W. (2008). Land taxes vs. property taxes in developing countries. Cambridge,
MA: Lincoln Institute of Land Policy.
Grant, S. & Vidler, C. (2000). Economics in Context. New York: Heinemann.
Hyman, D.N. (2011). Public finance: A contemporary application of theory to policy (10th ed.).
Mason, OH: South-Western.
