Developmental State Theory In Economic Development

As a result, the country will never have enough resources accumulate for future economic development (Rao, 1984, p.75 as cited in Prezworski A. and Limongi L., 1993, p.54). In this sense, authoritarianism has its own advantage as it can draw and execute policy beneficial to economic development without facing the objection from citizens. State can then make policy which are less favourable to citizens but beneficial to economic development, for example, country may adopt an economic contractionary policy in order to save enough money for future investment. Although the policy cause decrease in demand and have negative

The world should realize that the real pride is not in the country’s monetary development but in the happiness and the satisfaction level of the people. National statistical systems need to widen their approach because THERE’S MORE TO LIFE THAN JUST

NEGATIVE EFFECTS OF POPULATION GROWTH ON ECONOMIC DEVELOPMENT Government resources are limited, so population growth is seen as using up those limited resources on unproductive investment such as providing for the dependent population (the young (0-14) and the old (65and above) ). These government resources could have been used for capital goods and improving other sectors which might contribute to growth of the economy other than spending them on consumption goods. To support this point Cincotta and Engelman (1997) mention that the growth of GDP can be constrained by high dependency ratios, which result when rapid population growth produces large proportions of children and youth relative to the labour force. Population growth competes with capital formation and as such more is spent on the dependent ratio at

The focus is on increasing the national income of a country and the trade-offs between environmental protection and accumulation of wealth and maintain inter-generational equity are tackled with market prices that is used as a corrective mechanism for social, distributional and environmental concerns. This growth model is a means to a larger end that is- human development and how people can aspire to what they wish to be exercising their real freedoms. This model puts people before the market economy and revolves around the development of the individual to its full potential. According to Dre`ze and Sen, “In recent years, development economics has been also taking a more inclusive view of the nature of economic development. One way of seeing development is in terms of the expansion of the real freedoms that the citizens enjoy to pursue the objectives they have reason to value, and in this sense the expansion of human capability can be, broadly, seen as the central feature of the process of development ” (Dre`ze & Sen,

Another positive externality frequently associated with education is economic

The economic version of public interest theory is probably the most well known. It suggests that regulation is a response to imperfections in the market known as market failures. Correction of these failures increases the community’s general welfare and is thus in the public interest. Also those who press for regulation in response to market failures are agents of the public interest. Market failures can be defined by categories of monopoly, externalities and public goods.

The Distinctive attributes of Thatcherism and Reaganomics Introduction The policies of Thatcherism and Reaganomics significantly influenced the economies of the countries where they were applied. Some of their impacts are observed to be existing up to date although in more reformed and improved system. This research paper examines the features and achievements of the two policies and the impact they had on the citizens of these countries. It seeks to establish what negative impacts these policies brought with them in their bid to facilitate economical improvements in the countries where they were applied.

In addition, this means in turn that the economy’s means of production should be employed in such a way that production and distribution should enhance total socio-economic welfare. Social responsibility implies a public posture toward society’s economic and human resources and a willingness to see that those resources used for broad social ends and not simply for the narrowly circumscribed interests of private persons and firms (Frederick and William C, 1960, P60). A company nowadays is bigger than governments of some developing countries and carry a significant responsibility to make sure to run the business ethically and with good morals. Can a company be too big to control? A question with no conclusive answer, however, with more than 500,000 employees with so many departments, the task of managing the company efficiently is severe(McVeigh, 2015).

For example Acemoglu and Rob-inson, who write that “Institutions are the fundamental cause of economic growth and development differences across countries”, or Bogart. The lat-ter’s main focus is on the growth of a country’s economy brought about by institutional change in the long run. Institutional change is another fun-damental issue: it is about the introduction of new institutions which re-place old ones, and it can be due to many factors (such as government de-crees, or market-led processes). According to North, bad institutions are eventually replaced by good institutions, however there is evidence of the persistence of bad institutions in many different countries. As Persson (2010) says: “a common mistake made by economists and historians alike is to ascribe efficiency characteristics to institutions because they are pervasive and long-lived”.

Along these lines, unemployment may decrease, as this has different favorable circumstances, for example, lower government using on profits and less social issues. However, this phenomenon includes a number of different expenses. Firstly, if economic growth is unsustainable and is higher than the long run pattern rate, inflations are liable to be seen. An increase in economic growth could prompt an equalization of issued installments. In case the expanded customer expenditure causes further development, there will be an increase in the import sector.

In addition, the department takes steps to boost competition in the economy. As Herbert Hoover once said, “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” To boost competition, the department works directly with businesses and universities to aid in development. Without competition in the market, if one company controlled everything, they could set prices at whatever they choose, which would greatly hinder the economy. As a result of better spending tax dollars and improving economic competition, the entire country

From the first glance, the rise of the federal minimum wage is beneficial to everyone. It will improve living standards and the country’s overall economy, create more job opportunities, and reduce the poverty rate. However, after analyzing some economic theories and reading presumption made by qualified economists the idea of increasing the federal minimum wage will not look as good as before. Oppositely to benefits the raise may adversely affect standard of living, cause layoffs and fewer hirings, or has negative effect on poverty rate. Both points of view show the significant impact that the raise of the federal minimum wage may cause and both of them are partly correct.