THE INFLUENCE OF THE LEVEL OF FREEDOM ON THE DEGREE OF MARKET FAILURES IN SELECTED COUNTRIES – THE PROBLEM OF POVERTY

Maciej Ryczkowski

DOI: http://dx.doi.org/10.12775/EiP.2010.027

Abstract


The article presents that a freedom itself cannot solve the problem of poverty.
It turns out that freedom is not a sufficient condition. Some countries are good example that sometimes freedom is not even a necessary condition. Freedom itself is not enough to  assure high standards of living and it is not enough to avoid market failures. In order to make freedom useful, there is needed time and appriopriate institutions, appriopriate conditions, the context of the environment. However, there are some deviations and exceptions, the general outcome of the analyses carried out in this article is that the higher freedom we have, the lower poverty line and poverty gap is. Unfortunately more freedom also means more income inequality.


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