Government's Policies and Economic Development Essay

Government's Policies and Economic Development - Essay Example Problems faced by developing & transition economies, in which more markets are lacking, the markets that do exist may function less effectively, and information problems are more severe than in industrial countries simply because of the rapid change in the economic environment. While markets failures loom larger over this developing and transition economies, the capacity of the government to correct these market failures is often weaker. So the question arises is what should have been the role of the government in the past two decades. Assessing the appropriate role of the government requires the recognition of both the need for and the limitation of the government action. Successful governments have helped create markets such as bond and stock markets and long- term credit institution. They have established and enforced laws and regulations that have financial markets more stable and increased competition in all sectors. In many cases government has acted as a surrogate entrepreneur, encouraging the firms to enter the certain markets. Especially in export markets governments have provided firms with strong incentives. Some econometric evidences suggest that many of these interventions were quite effective. For instance, an analysis of the mild financial restraint evidenced in most East Asian economies suggest that it did lead to more rapid economic growth, but it can not be inferred that all governments are infallible. Even in the East Asian economies governments have made mistakes. The Japanese government for example initially prevented Honda from entering the automobile industry. Government cannot fix every problem. Government definitely has a plac e, but it should know its place. Economic growth in the last 20 years has shown a very clear decline in progress for some countries as compared with the previous two decades (1960 - 1980). The poorest group of countries went from a per capita GDP growth rate of 1.9 percent annually in 1960-80, to a decline of 0.5 percent per year (1980-2000). For the middle group (which includes mostly poor countries), there was a sharp decline from an annual per capita growth rate of 3.6 percent to just less than 1 percent Progress in education also slowed in the last two decades. The rate of growth of primary, secondary, and tertiary (post-secondary) school enrollment was slower for most groups of countries. There are some exceptions, but these tend to be concentrated among the better performing groups of countries. By almost every measure of education, including literacy rates, the middle and poorer performing groups saw less rapid progress in the period of globalization than in the prior two decades. The rate of growth of public spending on education, as a share of GDP, also slowed across many countries. Over the past few years the persistent economic crisis in Asia has called into question much of the received wisdom that liberalization has enhanced the economic contribution of international capital markets. The Asian crisis is but the most recent example of other similar episodes: the

Global Warming Illustration Essay Example | Topics and Well Written Essays - 1000 words

Global Warming Illustration - Essay Example People should also embark on afforestation activities to increase forest and vegetation cover and further invest in eco-friendly products. Global warming and its effects may be reduced by adopting environmental friendly farming methods, energy conservation techniques and engaging in other activities that reduces emission of carbon dioxide in the atmosphere. Global warming has affected every nation and village making it a concern to every kind of humanity despite of other distinguishing factors such as race, ethnicity, age, sex, and religion. The impact of climatic changes negatively affects the ecosystem. The effects of climatic change have led to death, malnutrition, droughts and are costly in most countries. The issue of global warming is serious and some experts and scientists say that the climatic change is still going to be a major issue as people can do very less to stop its impact but every individual can at least do something to control the climatic changes. Everybody should be responsible enough to control factors that contribute to global warming. Global warming has altered the climatic patterns in various parts of the world thus making people see nature differently. For instance, the water levels have gone down, cases of Katarina have gone so high, and rainfall is not falling most of the times as it used to in other previous days. Additionally, the vegetation cover is no longer the same the way it used to be in the past and animals have not been able to get food that can satisfy them because of lack of rainfall. Experts predict that in the coming days, the strength of global warming shall have gone so high and that there will be more heat waves and fires combined with severe droughts. Moreover, the experts argue that even a small change in temperature can make a very big difference in people’s life. Experts also say that oceans