Rule Based Economy

Globalization is making a world economy more complex. It increases the interdependence of the countries. Disturbance in one economy may affect the whole world. It will be difficult to control the economy because there are large numbers of players (countries). Each players act according to their benefits. For example, recently we saw that most of the countries restricted their export of food stuffs to control the rising prices of food items. These countries did not consider the importance of food items for other countries that are unable produce food grains. Same act is seen in oil producing countries. I think that to control the system we can make “rule based world” or “formula based world”.

“Rule based world” means, given the technology, each and every economic agents must set the formula for determining price of their output। As an example, the OPEC should set the formula for price of oil considering its cost, scarcity, demand, profit etc. Once the formula is set should not be allowed immediate change. The formula should be transparent to the public so that any one can calculate the price. The countries should supply the product at price determined by using the formula. This provision can be applied to all industries. It has three benefits: easy to control the economy, continuous supply of output, one can correctly anticipate the future. So, major problems are solved. Economic agents and policy makers correctly anticipate the future events. The national economy as well as the global economy will be under the control of economists.
“Commitment on the mathematical rule for trade can make the world better”