turupõhistes

turupõhistes refers to systems or approaches that are driven by market forces. This term, originating from Estonian, literally translates to "market-based" or "market-driven." In economic and policy contexts, it signifies a reliance on supply and demand, competition, and price signals to allocate resources, make decisions, and achieve objectives.

Market-based mechanisms are often contrasted with command-and-control or centrally planned systems. The underlying principle is that individual actors, pursuing their own self-interest, will collectively lead to efficient outcomes for the broader economy. Examples of turupõhistes systems include free markets, where prices are determined by the interaction of buyers and sellers without significant government intervention. In policy, it can refer to using market instruments like cap-and-trade systems for environmental regulation, where a market is created for pollution permits, or voucher systems in education, allowing parents to choose schools.

The advantages attributed to turupõhistes approaches often include increased efficiency, innovation, and responsiveness to consumer needs. Critics, however, may point to potential drawbacks such as market failures, income inequality, and the possibility of negative externalities if not properly regulated. The degree to which a system is considered "turupõhistes" can vary, with many real-world economies being mixed, incorporating both market mechanisms and government intervention.