What condition supports the establishment of a competitive market economy in developmental democracy?

The establishment of a competitive market economy in developmental democracy is primarily supported by the condition of private possession and control. This concept is fundamental because competitive markets rely on the existence of individuals and businesses that own property and have the autonomy to make economic decisions regarding their assets. When individuals possess and control resources, they can engage in voluntary transactions, respond to market demands, and innovate, which fosters competition.

In a competitive market environment, the freedom to own and manage private property incentivizes entrepreneurs and businesses to create goods and services that meet consumer needs. This leads to efficient resource allocation, drives economic growth, and enhances overall productivity, all of which are essential elements of a developmental democracy.

In contrast, conditions such as state monopoly of trade, limited capitalism, and central planning do not support a truly competitive market economy. State monopolies restrict competition and limit consumer choices, while limited capitalism may inhibit the rights of individuals to fully engage in market activities. Central planning undermines the decentralization required for competitive markets, as it involves government control over economic decisions rather than allowing market forces to operate freely.