| By Gavin Chait,
on 11 November 2006
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All biological systems require a mixture of measurement and feedback. When feedback breaks down the result is disease. Diabetes is the result of the body’s inability to control the appropriate level of insulin, which - in turn - is the responsibility of the Islets of Langerhans in the pancreas. If they don’t measure and do their job then they can’t tell the body to produce an appropriate level of insulin. Capitalism works in a similar organic fashion. Entrepreneurs identify a need (for microwave ovens, iPod music players, or television soap-operas) and provide it. If they don’t produce enough then consumers will have such a demand for the product that they will choose to pay more. This will lead to large profits and encourage other entrepreneurs to provide the same product. As the supply of the product goes up consumers feel satiated and their demand for the product is met. At this time the price starts to go down, profits decrease, and entrepreneurs in search of rewards for their time and money decide to go elsewhere. Development, unfortunately, works a lot like cancer. Cancer is what happens when cells lose their ability to know what to do, and when to stop growing. Each healthy cell in the body receives continual feedback about what it is supposed to be doing and when it is necessary to replace itself. Development, being largely a form of benevolent dictatorship, has little feedback. There are no consumers to buy products and little competition or differentiation between rival products. Needy people are treated like children: "we know what’s best for you." Just like cancer, development organisations spiral out of control in a developing economy, replacing healthy institutions and undermining individual choice. They just can’t help themselves. There is no-one to say stop.
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