Government Intervention in National Markets
Essay title: Government Intervention in National Markets
Government intervention in national markets.
Angola is one of those countries that is full of such examples. It is also full of contradictions and inefficiencies that dictate that more than often these interventions are only temporary on not fully abided by.
Angola’s socialist turned capitalist market is full of such regulated areas where government intervened directly much to the disarray of the market. I can remember a time when you couldn’t import tires into the country because Mabor the country’s tire producing factory had the monopoly of the tire market. If a private company wanted to import tires they had to require an authorization from Mabor, which would result more than often in it being denied, or a request for a commission on the import wasn’t uncommon either.
This continued for a good while even after Mabor stopped producing until the law was eventually revoked and companies are now able to import tires at will, but this law must be less than 2 to 3 years old (!!) as I had a friend who had a run in with the law because of a container full of tires which didn’t have the authorization from Mabor to enter the country.