Macroeconomics Unit 5 IP: The World Bank is currently advising newly industriali

Question

Macroeconomics Unit 5 IP:
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.

This assignment will also be assessed using additional criteria provided here.

Explanation / Answer

The mission of the World Bank is "to help developing countries and their people reach the goals by working with our partners to alleviate poverty." By focusing on six strategic themes used by the World Bank to support their mission "...the Bank delivers technical, financial and other assistance to those most in need and where it can have the greatest impact and promote growth. These themes are focusing efforts on the poorest countries, post-conflict and fragile states, middle-income countries, global public goods, the Arab world, and knowledge and learning. (WorldBank, 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) Hong Kong and Singapore were considered newly industrialized countries (NIC's) during the 1970's and 80's. Since it is not possible to become an industrialized nation without a market economy, that strategy needs to be the first priority in a NIC. 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) The methods applied were to bring about industrial stability by dismantling the communist party and fostering discipline in employer-employee relations, to attract multi-nationals companies with existing technologies that were looking for new opportunities to expand globally, and to maximize the potential of its people so they can contribute the most to economic growth of the country. ("How singapore came," 2010) By dismantling the communist party and fostering discipline in employer-employee relations these countries began to recognize property rights of the individuals. Without the consumer having the power to own property, the will be no free market systems. By implementing the second and third strategies, Hong Kong and Singapore were able to attract the necessary capital, technology and training necessary 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. 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 WorldBank, . (2011). About us. Retrieved from http://go.worldbank.org/5TU8IISQ50

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.