Market-led and Interventionist Development by Nguyet Nguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz en-us 2017-11-27 01:24:10 UTC 2025-09-26 04:01:44 UTC hello@padlet.com Market-led Development nguyetnguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232440 Policies that are designed to minimize the role of the government and to maximize the free operation of supply and demand in markets:
  1. Deregulation 
  2. Privatization of national industries
  3. Export-led development
  4. FDI 
  5. Structural Adjustment Policies
]]> 2017-11-27 01:27:45 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232440 Justification nguyetnguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232786 1. Reduction or elimination of gov. policies (e.g. price controls, subsidies)
=> increase competition, better allocation of resources as supply is adjusted accordingly with demand

2. Deregulation (environment, working hours, holidays, safety hazards) 
=> minimize cost, increase productivity

3. Privatization of national industries (sell off public assets to private sector) 
=> more efficient planning

4. Export-led development/trade-liberalization (removal of trade barriers) 
=> capital transfer, reduce poverty (more job opportunities), economy of scale allows specialization
 
5. FDI
=> improve physical (infrastructure) and human capital

6. Structural Adjustment Policies

]]> 2017-11-27 01:30:45 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232786 Process nguyetnguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232997
  • Third World Debt Crisis (developing nations borrowing too much money from IMF) => IMF would only grant loans if countries adopt Structural Adjustment Policies (development framework - inflexible) 
  • 1980s: Movement towards free-market (e.g. Ronald Reagan in US and Thatcher in UK)
  • Success examples: Asian Tigers (Japan, Hong Kong, Singapore…) adopted export-led strategies and encouraged FDI for economic growth

    • ]]>     2017-11-27 01:32:08 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210232997     Problems nguyetnguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210233117
  • Soviet Union and its satellite states transitioned to market-based economy (late 1980s)
    • Subsequent success signaled that central planning was not a bright option for optimal growth
    • However, it removed financial support for many developing nations that sided with Eastern Bloc countries with a Communist ideology
          2. Free-market cons:
    • Monopoly
    • Inequality 
    • Exploitation due to deregulation: affecting the working conditions and salary of low-skilled workers
    • Unsustainable growth (environment) 

    ]]>     2017-11-27 01:33:04 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210233117     Interventionist Development hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210233947 Policies involving an active role by the government and manipulation of the workings of the markets in the economy.]]> 2017-11-27 01:40:03 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210233947 Examples hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234086
  • Import substitution policies
  • Protectionist trade policies
  • Exchange rate intervention
  • Regulations
  • Nationalization of private industries

    • ]]>     2017-11-27 01:41:23 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234086     Until when was interventionist policy popular development strategy? hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234146
    Until the end of the Second World War (1945 Sept 2), most of the efforts to develop a nation’s economy was focused in the government perspective.
    ]]>     2017-11-27 01:42:04 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234146     Problems ! hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234315
  • Dominance of the public sectors- leading to bureaucracy, overstaffing and inefficiency.
  • Provided opportunity for the growth of corrupt practices.
  • Nationalized industries (which took a large proportion of the whole industry!) tended to be inefficient and loss-making. Hidden unemployment arose.
  • The increases in the money supply (this is how interventionist policies are done) put huge upwards pressure on inflation.
  • Much of the expenditure was on large infrastructure projects that saw little success.

    • ]]>     2017-11-27 01:43:39 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234315     Advantages hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234681
  • Infrastructures, which are the basis of economic activity provided by the government (e.g. roads, signs.. etc) are likely to be provided.
  • Developing countries are vulnerable in competition with the developed countries who are heavily subsidized  // government intervention to protect these industries are effective at times.
  • Export-led industries are likely to be protected, which provides a base for rapid economic development. A well-known example is the ‘Asian Tigers’ - which refers to the four economies: Singapore, South Korea, Hong Kong, and Taiwan. These nations exemplifies an economic growth thanks to the rise in the net export (X-M) value.
  • While market-based policies more focus on the potential of gaining profit, interventionist policies also concentrate on the improvement of the living standards of the young, old, and the weaker population.

    • ]]>     2017-11-27 01:46:40 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234681     Balanced / Ideal Economy hchoi14 https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234995

    ]]>     2017-11-27 01:50:11 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210234995     nguyetnguyen https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210236089
  • Trade justice - developing nations trade on fair basis as developed nations without protectionist impediment
  • Debt relief - release funds that can be invested into physical and human capital
  • Free trade (only once smaller markets have achieved a competitive scale, sound infrastructure, quality labour force, and technological and managerial expertise)
  • Political stability and elimination of corruption
  • Effective and targeted aid that promotes growth and abates poverty (e.g. infrastructure, R&D, education and training…)

    • ]]>     2017-11-27 02:01:04 UTC https://padlet.com/nguyetnguyen/uic3hrgdrfzz/wish/210236089