strategies influencing growth Flashcards
examples of trade liberalisation
in South Korea from 1980 till present, trade liberisation boosted growth and created more jobs and brought new technologies and capital. and the export are worth around 600 billion dollars. it had trade barries in the manufacuting and agricultural sector
examples of promotion of FDI
Vietnam: In 2020, Samsung Electronics announced a $220 million investment in a new smartphone factory in Vietnam, which will increase its production capacity in the country.
India: In 2019, Facebook invested $5.7 billion in Jio Platforms, an Indian technology company, to support the growth of India’s digital economy.
Bangladesh: In 2021, Chinese textile company Keer Group announced a $300 million investment in a new spinning mill in Bangladesh, which will create jobs and boost the country’s textile industry.
floating exchange rate systems
Mexico: Mexico has been using a floating exchange rate regime since the early 1990s. This means that the value of its currency, the Mexican peso, is allowed to fluctuate based on market forces, rather than being fixed to another currency or a basket of currencies. In times of economic crisis or when the peso is seen as overvalued, the Mexican government has allowed the peso to depreciate, making its exports cheaper and boosting its competitiveness in international markets. For example, in the late 1990s and early 2000s, Mexico experienced a period of significant economic growth, in part due to a depreciation of the peso that made its exports more competitive.
examples of privatisation
Chile is often held up as a success story for privatization in the developing world. In the 1980s, the Chilean government privatized a wide range of state-owned enterprises, including its telecom, electricity, and water industries. This helped to increase efficiency, reduce corruption, and stimulate economic growth. Today, Chile is considered to be one of the most stable and prosperous economies in South America, with a well- developed infrastructure and a thriving business sector.
examples of the removal of government subsidies
In India (1991-present), removal of subsidies for the agriculture sector created a level playing field for private sector development. due to an increase in efficiency In 2020, India’s agriculture sector received private sector investment worth US $10 billion
examples of Microfinance schemes
Bangladesh: The Grameen Bank, established in Bangladesh in 1983, is widely regarded as the pioneer of microfinance and has provided small loans to millions of poor people in rural areas.
India: The microfinance sector in India has grown rapidly in recent years, with a number of organizations providing small loans and other financial services to low-income households and small businesses.
Latin America: Microfinance has been widely adopted in many countries in Latin America, including Mexico, Brazil, and Peru, where it has helped to increase financial inclusion and promote economic growth.
Africa: Microfinance has also been successful in many African countries, including Kenya, Ghana, and Morocco, where it has helped to reduce poverty, create jobs, and increase economic activity.
examples of development of human capital
south korea took education seriously and invested into it and made it the successful country it is today
One example of a developing country that has successfully increased education levels is South Korea. In the mid-twentieth century, South Korea was one of the poorest countries in the world, with low levels of literacy and limited access to education. However, in the decades that followed, the government made a concerted effort to expand access to education, particularly at the primary and secondary levels.
As a result of these efforts, South Korea’s literacy rate increased dramatically, and the country became a leader in the region in terms of educational attainment. Today, South Korea has a highly educated workforce, with near universal enrolment in primary and secondary schools and high rates of participation in higher education.
The expansion of education in South Korea has been a key driver of the country’s economic development, helping to spur technological innovation and increase competitiveness in the global marketplace. The country has also seen a decline in poverty and income inequality, as education has opened up new economic opportunities for its citizens
examples of protectionism
americas tarrifs on EVs from china to 100%
chinese quotas on cambodian rice 300 000 tonne quota
In South Korea, the government implemented policies in the 1960s and 1970s that protected and promoted certain industries, including:
Steel: The government provided subsidies and loans to steel producers and restricted imports of foreign steel.
Shipbuilding: The government supported the development of the shipbuilding industry through tax breaks, subsidies, and restrictions on foreign competition.
Electronics: The government encouraged the development of the electronics industry through investment in research and development, subsidies for domestic firms, and restrictions on imports of foreign electronics.
examples of managed exchange rates
Promoting exports: A weaker exchange rate can make a country’s exports cheaper, which can help increase demand for the country’s goods and services in the international market. This can help promote exports and support economic growth. For example, China’s managed exchange rate policy helped make its exports more competitive and contributed to its economic growth.
examples of infrastructure development
major development in rwanda, through finding new ways to secure energy and airport travel
KIVUWATT Methane Gas Project: In 2015, the government of Rwanda completed the KivuWatt Methane Gas Project, which involved the extraction and use of methane gas from Lake Kivu to generate electricity. This provides around 15% of Rwanda’s electricity needs.
KIGALI AIRPORT: In 2019, the government of Rwanda completed a major expansion of the Kigali International Airport, which included the construction of a new passenger terminal and an expanded runway. The new terminal has a capacity of 4.5 million passengers per year
examples of buffer stock schemes used
One example of a fairly successful buffer stock scheme is the International Cocoa Organization (ICCO) which was established in 1973.
The success of the ICCO’s buffer stock scheme can be seen in the stability of cocoa prices over the past few decades. While there have been fluctuations in prices, the overall trend has been one of stability, with prices generally staying within a reasonable range.
