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Toothless Competition Commission

There are two types of economic systems that have been operating in the world. One of them is known as capitalist system of economy while the other is billed as socialist economic system. The capitalist economic system is run on the basis of free enterprise in which, unlike the socialist pattern of economy, state control is minimal. The market is run on the basis of demand and supply. In Pakistan we have neither hundred percent capitalist system of economy nor communist system of economy. Our economy is a mixture of both these systems. The tragedy with capitalistic form of economic system is that since there is no worthwhile state control over it ,experience of hindsight tells us, that the traders and the mill owners indulge in worst type of economic exploitation of the have nots . It is precisely for ensuring that the capitalists don’t have a free hand completely in managing the country’s economy, the countries in which it prevails have taken some safeguards to protect the economic exploitation of the poorer classes of the country. For instance, a very strong base in the form of consumer societies has been provided in many capitalist countries which have a very strong hold over the trading communities who simply cannot jack up price of essential commodities without prior consultation with consumer societies .Unless they convince these consumer societies of the need to increase price of essential commodities, they simply cannot even think of increasing the price index of essential commodities. Countries practicing capitalist economic system have also set up competition Commission for ensuring that the big businesses don’t indulge in in the formation of monopolies and cartel. In Pakistan there is competition Commission but hitherto it has not been able to make its presence felt. It appears to be a toothless organization. To cite an example it has failed miserably to prevent formation of a strong cartel in the cement industry of Pakistan which has been increasing price of cement arbitrarily since long. What good is the competition Commission if it cannot keep healthy competitive economic environment in which there is no room for economic exploitation of the teeming millions of the country by the greedy capitalists?

About Mazhar Ali Shah

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