Understanding the free market economy

Understanding the free market economy in this quarter of a century of the democratic history of the Albanian society, the developments in the field of the economy are quite impressive. It is important to emphasize that the balancing role and behavior of the state through various legal reforms is a matter of philosophy and conception. This role is always and continuously and is a product of the professional, individual training of the persons who run the state and run the institutions.

Bringing the state in the service of promoting these deformations is another essential thing. Individuals with training from a lower centralized model school before the need to install the market model. From one extremism to another. From a wholly nationalized society to an organization possibly without the role of the state in the economy.
Often, in economics, fair choices and decisions are very close to rational reasoning and judgment. Each socioeconomic system has its characteristics in terms of how it is implemented in a given society and at a given time.
Economics is not a science; it more resembles a technique or way of thinking to provide solutions to problems at a given time. In democratic states and some communist states, the economy is organized according to the market economy system. This system is advanced and has influenced many countries of the world to develop through the market economy.

A market economy is defined in market liberalization and has several elements:
1. Everyone has the right to open a business authorized by law.
2. Every enterprise has the right to set the price of the product.
3. The market economy is characterized by real competition except when there is a lack of a particular product.
4. The opportunities to be monopolized in a market economy are smaller.
5. Products can be exported and imported freely except when the state has no diplomatic relations with one or more specific countries.
6. Public enterprises in a market economy are few; they do not exist much in capitalist systems; they can live in social democratic states.

In Albania, during the whole period of communism, the economy was centralized, while today, we have a capitalist economy. The capitalist system supports private property and contains liberal forms based on complete market freedom. We can not say that Albania has a perfect capitalist system, nor can we say that Albania does not have a market economy organization. But Albania is far from capitalism compared to European Union countries.

The most developed free market is “Entrepreneurial Capitalism.” This organization of capitalism is based on the principles of Adam Smith, who claimed that the less the restrictions on economic freedom are affected, the better it develops. In the countries of the European Union, “social capitalism” plays an influential role. Many of the ruling parties in Europe are center-left parties, and the left invests more in social aspects than in capital aspects. What system of capitalism do we belong to?

We are not oriented because we are a country in transition, and economic policy is created by addressing the current circumstances.
Socialism supports public property supervised by the state, and I think that Albania has converted a large part of “Public Enterprise” into private but with some preconditions.
1. Fight against corruption in that public enterprise;
2. Freedom of investment;
3. Financial freedom;
4. Free competition.