Market Expansion, Private Sector Growth and Economic Development

The rate of growth in economic activities in the private sector and the level of economic development depends on the width and depth of market activities in an economy. Increased in market participation is dependent on a number of co-determinant factors working together. These factors include the level of monetization of economic activities with the resulting boost in the level of specialization (implying a fall in the level of subsistent activities); direct physical development of market; increased in the supply of infrastructure, especially those of transportation and communication; improvement the moral (social) capital of trust among the people in the society; promotion market-oriented policies by the government; among other things. If these factors are adequately available in the economy, jobs will be created through increased participation in income-generating activities, which naturally lead to market expansion, growth in directly productive activities of the private sector, and development. Even though market expansion will result in economic development, market activities must be regulated and given proper policy guide and direction for sustainable beneficial outcomes to be realized.