Public Policy & Crafting Market Policy
Jen-Hui Hsu
Abstract
Neoliberalism encouraged privatization and deregulation in the later period of the twentieth century. Thus the markets occupied the main position to allocate resources in the economy. However, the problems of business integrity, fiscal crisis, and the disparity of rich and poor happen in the twenty-first century. What went wrong with the marketization and liberalization policies? In the past, liberalization policies only focused on the reduction of public scope, and ignored the issue of government execution. The over-simplified classification of government and market also encouraged nonsensical policy arguments. Through the studies of finance market and labor market, we found the market mechanism can take more responsibility but need to be crafted. The public policy should play the role of a designer and monitor to help the markets to work better. Public policy should focus more on public participation, the legal system, and business integrity. The ability of policy execution should not be ignored either.
Keywords: privatization, deregulation, marketization, public policy