NO-SUBSIDY MANTRA OF GOVERNANCE TO ATTAIN THE MOST EFFICIENTLY COMPETITIVE ECONOMY

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Abstract

This paper proves the existence of a practically implementable system of governance necessary to attain the most efficiently competitive economy without the arduous collection of private information on individual preferences through a central planner. This governance is constituted with tenets:(a) adoption of only known commonly agreed rules like (i) common civil codes of conduct and (ii) penalties for robbery, killing and usurpation of public and private wealth and (b) an irrevocable mandate to frame any new commonly agreed rule that may be discovered in future or to repeal or amend any prevailing rule which may be ascertained in future to be preferentially catering to subsets of people. The only feasible available norm for common agreement to set rules is self-sufficiency of each group like the households and companies. Self-sufficiency or no-subsidy mantra is defined by the net surplus (production minus consumption) of a group being greater than the transfer from the public exchequer to the group.

Keywords: Governance, ompetitive Economy, No-subsidy Mantra

How to cite this paper: Acharya, S. (2012). No-subsidy mantra of governance to attain the most efficiently competitive economy. Journal of Governance and Regulation, 1(3), 55-64. https://doi.org/10.22495/jgr_v1_i3_p7