Interventionist Strategies Flashcards
1
Q
What are interventionist policies built on
A
The belief that the state / government sector can be a powerful force for good in promoting inclusive and sustainable growth
2
Q
What is a developmental state
A
A country with strong state intervention, as well as regulation and planning of markets
3
Q
What countries are described as in the developmental state
A
Thailand Vietnam China South Korea Fast growing African countries such as Ethiopia
4
Q
Key roles for the state
A
- basic healthcare
- basics infrastructure
- core public goods
- regional and industrial policies
- interventionist policies
- progress taxation and state spending to reduce inequality
5
Q
What do the MNCs may need controlling
A
- protect against exploitation
- discourage resource depletion
- protect local culture
- discourage market power abuse
- protect domestic businesses
6
Q
When does government failure occur
A
When an intervention leads to a deeper market failure or even worse a new failure may arise
7
Q
Why may government failure occur
A
- self interest
- quick fixes
- regulatory capture
- information failure
- disincentive effects
- conflicting objectives
- red tape
