Shomron Center for Economic Policy Research

In Search for an efficient Institutions

Are we ready to lose the Opportunities unleashed by COVID19 Crisis?


As every crisis, current COVID19 pandemic causes economic setback, fuels demand of special interests and emboldens bureaucrats’ claim for more and more discretionary power. But the same crisis brings not only heavy losses for all the countries, but opportunity to succeed also. The opportunity to succeed will not need heavy governmental spending but it will require termination of various practices harming both business climate and public morale. Deep deregulation and respect of freedom of contract, termination of violation of freedom of private choice under pretext of ‘fighting discrimination’ will benefit the courageous society and will pave the way for lasting prosperity.

The following moves and measures are recommended:
Repeal of modern ant-trust legislation and disbandment of ‘Anti-monopoly’ authorities;
Nature, environment protection will be vested to private interests, based on privatization and due delimitation of the property rights (including forests, lakes etc.), responsibility for negative externalities established in the court disputes; respective governmental bodies disbandment;
‘Anti-discrimination’ through ‘positive’ discrimination legislation repeal and abandonment the respective policies, liberalization of real estate and Labor markets
Limiting the scope of [welfare state] activities and responsibilities of the Government, respective Balancing of the budget under moderate tax burden.
Abandonment so called ‘stimulus’ Governmental policies.
General repeal of business regulations through Idaho pattern – based solution (for Israel – Basic Law: Freedom of Occupation (1994) Amendments – new Edition of the Basic Law).
All above mentioned measures would lay solid foundation for healthy, sustainable economic growth in Long ran and will attract direct investments in the country in short and medium ran period, exploiting opportunities lost by the rest of developed nations and the opportunities unleashed because of weakening PRC competition for the investments caused basically by worsening of guaranties for private property in the communist China and, currently, – by the panic, caused by COVID19.

The paper, presenting the proposals and providing some materials to support it one could find at SSRN site.


Leave a Reply

Required fields are marked *.