Economic monopoly can drag a country into poverty

In his book The End of Poverty, Jeffrey Sachs writes that the majority of people in Pakistan live in jobless poverty and many die after suffering diseases as a result-this despite the fact that the country's 22 richest families have become richer and richer as they monopolize Pakistan's major business sectors such as banking, commerce, transport, insurance, industries, and trading, according to Indian researchers.

Economists believe that there are many different buyers and sellers in a market. According to the conventional wisdom, we should all be able to compete for a market share. Prices should be changed according to market demand. There are substitutes for every product. A buyer will choose to buy a non-expensive item if another product is expensive. Both buyers and sellers can exert equal influence on the price, as there are many of them in the market.

But some services may be unique, so there are no substitutes for them. Manufacturers can control the price of a product in a market that has no competition, as there are only a very few manufacturers of the product in the market. In other words: if there is absolutely no choice for consumers, then the consumers will have no influence on the product price. For example, as Sky Net is authorised as the sole broadcaster for Premier League football matches in Myanmar, the consumers have no choice but to choose it.

A monopoly is complete control of trade in particular goods or services by only one person or group. There may be economic or social or political causes for monopolies to arise, although it is possible that only one party can do the business as a monopoly if the investment is very large. For example, a government can control a service like the supply of electricity if it wants to.

In a monopolized market, only one person or a group controls the production of a natural resource. For example, the Saudi Arabian government controls the oil business in that country. Another type of monopoly occurs when a company obtains the copyright of a product to prevent others from joining the market in competition. For example, the Pfizer Company owns the copyright for Viagra-proving definitively that size does matter.

Whatever the case, one of the main reasons so many countries find themselves poverty-stricken is the continuous survival of a monopolized economy where only a small group of business people controls the country's economy without any free market system. So Eleven Media urges the creation of a free market system to put an end to monopolization, stimulate Myanmar's economic development, and pull millions of us out of the poverty.