The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help. Using the Internet, library and/or other resources, research and briefly explain 2???3 methods currently being used to encourage economic growth for the typical firm in Hong Kong and for the typical firm in Singapore. Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong and Singapore? Explain the rationale for your choice. World Bank Christopher D. Berning American Intercontinental University
According to the World Bank, its mission is helping countries develop and reach the goals of its people by working with its partners to alleviate poverty. According to them they focus on six themes of strategy to support this mission of providing Technical/financial and various other assistances to those in need where its impact will be the greatest and promote further growth and development. The themes identified where post-conflict and fragile states, global public goods, middle-income countries, focusing efforts on the poorest countries, knowledge and learning and the Arab world. World Bank, 2011) The key to successful economic development is to implement strategies that include “a market economy, a high saving rate, and investment in infrastructure and in human capital”. (Rittenberg, & Tregarthen, 2009) Since the 1970-80’s Singapore and Hong Kong have been considered (NIC’s) or newly industrialized countries. It is not possible for a nation that is industrialized to do this without first having a market economy as such this should be the first Priority of a NIC.
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To have a market economy there must be “a division of labor in which the prices of goods and services are determined in a free price system set by supply and demand”. (Altvater, 1993) Supposedly, to bring about industrial stability through the dismantling of communist parties, attracting multi-nationals companies with existing technologies, maximizing the potential of its people so they can contribute the most to economic growth of the country and the fostering discipline in employer-employee relations through these methods was successful. (“How singapore came,” 2010)
In the dismantling of communist parties and the employer-employee relations discipline began to foster countries such as these began to recognize property rights in regards to individuals. There can be no free market systems if consumers cannot have the power to own property of their own. By implementing these two strategies, Singapore and Hong Kong attracted technology and training and attracted the necessary capital for a free market economy. References Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature after the Collapse of “Actually Existing Socialism.
Verso. pp. 57. Retrieved from: http://books. google. com/books? id=dd2jE0NXEjcC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false How Singapore came to develop its high tech industry . (2010, June 20). Georgian Business Week, Retrieved from http://www. gbw. ge/news. aspx? sid=e8dde96b-b4e2-4663-87c0-d5f8a8ea1ece Rittenberg, L, & Tregarthen, T. (2009). 19. 3. Keys to Economic Development. Principles of macroeconomics??. Retrieved February 3, 2011, from http://www. web-books. com/eLibrary/NC/B0/B62/096MB62. html