The Need For Market Regulation: Impact Of Covid-19

Market regulation involves an idealized policy where government and other institutions govern the market, regulate the forces of demand and supply and to some extent oversee the market actions and policies. Market regulation is an aspect of a nation’s economy that requires full concern as it contributes to economic growth and development. Nevertheless, Markets left to their own devices may not result in the best outcomes when viewed from the perspective of the net impact on all partakers.

A general notion connotes that a market is a place where buyers and sellers meet to carry out transactions, these transactions may, however, have adverse effects if the market is not regulated.

In most developed and developing countries across the globe, there are different segments of regulated markets. The need for regulated markets today cannot be overemphasized. Since the market is generally seen to be a place of transaction, the well being and stability of any society depends on whether the members of that society are able to own goods and services they need or want.

In traditional societies, there are kings and chiefs who regulate the activities(market inclusive) in their small towns and villages. However, in modern times, despite the presence of these traditional rulers, the source of authority is likely to be government laws and agencies. These laws are being put to govern and oversee the functioning of the economy.

In the world now, different categories contributing to economic growth are being catered for and regulated. How about the market? The local and foreign markets? The lopsided effect of an unregulated market affects the life of the nation’s citizens, most especially the low and mid-income earners. A regulated market includes tasks such as determining who is allowed to enter the market and also what prices to be charged.

An unregulated market has caused both buyers and sellers to be left on their own thereby giving freedom to outsiders to exploit the market and enforce different biased laws. I have seen most businessmen and businesswomen complain about how the market is exploited and how most goods cannot be accessed the way they used to. This is as a result of the absence of regulation in a market. It pushes its sole users to be far away that they have no option than to be business isolated.

Today, the prices of goods and services in local markets have increased tremendously due to the current pandemic (COVID-19). The emergence of COVID-19 has caused the increment of goods and services not by original sellers but by “market exploiters”. Households ought to acquire goods and services at low cost due to several restrictions made, but the reverse becomes the case. It is been observed lately that prices of goods have been increased by 50%(per cent) their original price which is not good for the masses. The United Nations Sustainable Development Goals are fighting against zero hunger, but because of the absence of market regulation today, the level of hunger in different societies have drastically increased.

In recent times, businessmen and businesswomen do have confidence in their purchase of goods, however, it has been observed that goods are now exploited (different and untested products) and it is dominating the market. This has resulted in individuals wanting to make sales during the pandemic and is causing harm slowly to the lives of the users.

The importance of market regulation today is been neglected, in that its operations are no longer effective and efficient. Businesses are complaining, sellers are using the current pandemic as a means to exploit buyers, most buyers are no longer buying due to exploitation, the value for goods and services today is depreciating. It is indeed a call to the necessary authorities for actions to be taken. The market needs to be upon its feet again.

In 2005, the Organisation for Economic Co-operation and Development stated that regulations are perhaps the most pervasive form of state intervention in economic activity. It is also essential for the good working of market regulating. Unregulated markets can suffer from problems of possession or externalities, problems that governments may be able to correct by regulating.

© The Eastern Herald
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Precious Okereke
Undergraduate student at the University of Port-Harcourt. A serial entrepreneur and a financial planner. He is the founder and CEO at AccountHub Global Institute(AGI). Contributor to The Eastern Herald.