I have been reading the debate titled: "Does the Free Market Corrode Moral Character" at the John Templeton Foundation:
http://www.templeton.org/market/

I was reading this study among others about rampant prostitution among middle class girls and women in Kathmandu.

 title: Carnal Economies: The Commodification of Food and Sex in Kathmandu

http://www.anthrosource.net/doi/abs/10.1525/can.2005.20.1.001?cookieSet=1&journalCode=can

To break it down in lay person language, Kathmandu has gotten super stylish and fashionable. Everyone, whether they have the means or not feels the need to top the person next to them in terms of gadgets and the latest stylish accessories.

Things are the worst among girls from middle class families. They want to be upwardly acceptable with the rich girls but don't have the means. Gaining acceptance in upward circles can mean good connections for good jobs. These girls have tremendous pressure to maintain a certain image. So how do these girls who come from middle class families get money?

Welcome to the murky but lucrative world of high-class prostitution. Basically these girls go to madams in Thamel and negotiate prices for themself. They go to hotel rooms and cater primarily to business men, politicians and foreigners.

I suppose prostitution is also a form of human resource. Maybe I'm just old fashioned but I find it disturbing that there are thousands of girls from well-to-do families selling themself because of the pressure they feel from the media and their peers to live up to a certain 'image.'  

Capitalism works great when there is regulation. But in an economy like Nepal's where 'might is right' (ok, money is right) regulation has no meaning. Where do we draw the line?