What can Government do to Promote Growth? - The Economist

Tuesday, 30 July 2019

What can Government do to Promote Growth?

we can explain this topic in the following points: 
  • provide stable macroeconomic climate, e.g. stable rates of inflation and GDP growth. this encourages savings and investment.
  •  invest in human capital, e.g. in education and training.
  • provide an effective financial system, e.g. to provide funds to enable investment, to encourage savings to gather the funds to allocate to investment.
  • increase the role of women in society to provide more skills inn the economy.
  • selective intervention, e.g. to promote exports.
  • invest in technology to ensure capital in productive.
  • have policies to encourage productive use of land, e.g. fertilizers and irrigation system.
  • preventing corruption so business people have faith in the system s do foreign investors.
  • have policies to encourage trade.
  • have policies to encourage development of infrastructure, e.g. roads railways.
NOTE; all of these are solutions that a government can do to promote growth.
Economic-Growth

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