policy question (1 Viewer)

[disco_dave]

Have this question:

Explain FOUR policy options available to low-income countries they could use to increase their levels of economic development. 4 marks

Can anyone help on that sucker?? not even sure how to start it...

cheers,
disco

 

[jimmik]

errr...all i can think of is pursuing free trade in order to gain from specialisation in producing thus increase eco gwth... wat an odd question..

 

[ToO LaZy ^*]

use of fiscal policy
-spend more on education and training programs
-spend on capital, infrastructure to improve development in the future
-spending on social welfare

 

[Rorix]

there's lots to choose from

e.g.
liberalisation of financial regulations
trade policy
infrastructure spending
removal of labour regulations

 

[Acid]

1. More money to education and health in the fiscal policy.
2. Micro-economic reform to labour market - deregulation - improve competitiveness of labour/quality of life.
3. Trade policy - enter into FTAs with other countries in order to increase the variety/quality of goods, decrease prices and thus, increase quality of life.
4. Seek support packages from the World Bank
5. Increase interest rates under monetary policy to encourage foreign investment in infrastructure, etc.

That's about all I could think of atm...

 

[Albert K. Holic]

hmmmmm. development and not growth? bummer. if it was growth i guess you could say something about removing barriers to make domestic industries more efficient.

however, development.... yeah, i guess fiscal spending on education and health would be good.

since environment is also a measure of economic development, maybe something to do with taxes on pollution, ie subsidies for companies that dont pollute much, research into enviro-friendly means of production and so on.

of course, whether you could actually implement these in a low-income economy is another question altogther.

 

[aditya]

they could improve their growth then oimprove their development lol.... u cant just improve economic development without the economical need for it.... u wont be able to fund it... sounds like a dumb question :S was it past hsc

 

[disco_dave]

i think the key is low-income country. They have a very low level of savings and wages in LDC's and therefor government cannot spend big on infrastructure and fiscal policies becuase a budget deficit isnt possible or advisable becuase no one saves.

not sure that low-income countries can free up protection either becuase of such a low level of technology they cannot compete with developed countries.

its a curly one...