Inefficient administration, red tape and lax in strict implementation of law and order--
â€˜Inadequate infrastructure set-up, corruption and inefficient government bureaucracy were the top-most hazardous factors impeding business activity in the country in 2010, according to Globalâ€™ -------------Competitiveness Report of the World Economic Forum (WEF)
Aside from fostering red tape and unnecessary official procedures, the political parties are hungry for power often calling strikes, blockades, etc which hamper the general flow of life and business activity, eventually harming the countries resources. Due to imbalance between material wealth and human resource, capitalism will be unable to satisfy the needs of the people in this country and capitalism will be destructive for the people. With the kind of inefficient administration and cultural practice present in the country, it is wise not to hope for a flourishing capitalist economy.
The primary law of capitalism is to operate for profit. In a country like ours where the rule of law is absent people will naturally make profit by plundering. Due to this reason instead of capital investment people are making profit in other, risk-free ways. They are taking a huge amount of black loans from banks, and they are using fake invoices in the import export business to expand capital. These are only a few examples of corruption that can make people millionaires. Therefore corruption can be a major constraint to capitalism in this context.
If our country has to move towards capitalism it has to follow some game rules that most developed countries have followed. These are:
1. There has to be law and order in the country otherwise capital investment contracts will not be secure.
2. The political parties should not be given the power to hamper the normal way life of the citizens. The economy has to be insulated from the fights of the political parties for power.
3. The educational institutions should be insulated from feuds of political parties that develop this version of democracy.