Foreign Policy Ideas For Economic Growth In A Developing Country

Revamping the Foreign Policy

Question:

Write an essay on “International Economic Development“.
 

In this reflective essay I will be  applying various foreign policy ideas implement them in democracy and then be able to see which policy is best able to improve the economic welfare of the country which will then be able to provide me with the Necessary number of voters to be elected in the country. Some of the areas that need to be revamped include foreign policy which includes international trade, foreign aid, immigration, welfare which includes poverty, equality, housing (public and private), pensions (public and private), unemployment benefit, economy includes GDP, tourism, competitiveness, currency, wages, unemployment, agriculture, recycling, energy, technology,. tax includes company, income, sales, property, public services includes healthcare (public and private), education (public and private), research funding, law and order includes crime, police, guns, prisons, transportation includes rail, road, air, oil (Jomo K. S. and Chowdhury, 2012). 

Since this was a developing country there are a lot of areas that still want policies to generate growth.   I realized that the main problem in this country is high unemployment rate which if tackled would be able to give me more than 70% of the votes. This is due to the presence  of a youthful population in the country that make up almost 60% of the total population. Hence I realized that policies should be focused on how generate and create employment for the youth who have no jobs. This can be tackled by improving the competitiveness of the country to attract foreign direct investments in the country and by doing so I will also be able to see that there is growth in the GDP.

In recent years, the international economy has undergone significant changes that Our country has not been able to stay away, given its high degree of integration into the world economy on the one hand, and the important proximity to the main engine of this in recent times, the United States on the other. I will sign Free Trade Agreements with countries such as United States and Canada (NAFTA), to make Our country became an attractive destination for foreign investment for many transnational corporations and focused development model oriented abroad. Subsequently, as part of a trade policy with a clear liberalization objective, the country signed new trade agreements with other nations in the region in Central and South America, as well as with the European Union, Israel, the European Free Trade Association and  Japan. This will definitely guarantee that there is creation of employment for the youth (Jomo K. S. and Chowdhury, 2012).

implementation of a trade policy without a clear openness and liberalization objective, whose central axes are: to increase foreign trade and attracting foreign direct investment as driving forces of economic growth, it is time to make an assessment of process.Foreign trade, which has traditionally been the engine of growth in many economies, will also be  to Our country, which is currently considered one of the most open economies.Trade liberalization, which started from mid nineties , when the country decides to face a new deregulatory step by seeking new business in the international market, yields high export figures for as well as increased foreign direct investment.

Tackling High Unemployment Rate

Our country needs of global markets to maintain its foreign trade strategy, but the way of bilateral negotiations has not yielded the expected results, since exposed to competition in many sectors today reveal neglected, especially in agriculture as It shows in the well-documented case of rice the food chain, in which production losses, it has to add her job losses.

It must support the local  companies to export, since the revenue generated by sales abroad allow creation of employment both directly and indirectly. Winners in foreign trade sectors were those related to foreign investment, ie they have optimized their benefits on the basis of exploiting the main comparative advantage of transnationals Our country:In our country, foreign trade represents an essential instrument for achieving economic growth. It is for this that the relief has come close to the ceiling and still signing new trade agreements with other countries which are analyzed (Munshi and Abraham, 2004).

An alternative would be the extension of that exportable offer based on knowledge and adding value, ie attributable to local businesses endogenous growth and focused on foreign trade, especially small and medium enterprises, key stakeholders in a strategy production development and weigh the existence of national networks between companies and between sectors. This policy gave me about 60% of the votes which will guarantee me the outright victory to be voted in.

Investment in health, a priority of the package of social investment, and as an area that is so dear in peoples hearts healthcare investment should be able to bring in a substantial number of votes. About 40% of the people feel that health care in the country should be improved.Investment in health is a key package of social investment, where the contribution is recognized element health to a job-rich recovery. policies in this field and reforms of national health systems are essential for my election bid. Health is a value in itself, but also a precondition for economic prosperity. Health expenditure is conducive to growth. And the more effective use of the social and health budgets through advice and encouragement of good practice. I will unsure smart investment in sustainable health systems that are responsible for the organization and functioning of the health care services. To increase the efficiency of these services, it is not always necessary to spend more, but do it smarter. And ensure that the cost of healthcare for the people is at a minimum and is also quality (Singh, 2013).

It is essential to put reforms and investments to achieve greater performance .Efficiency gains can be achieved in several ways, reducing hospitalizations and specialist consultations that are not necessary, strengthening primary care, encouraging the use of less expensive drugs equivalent (generic),evaluating the profitability of health technologies as a basis for decision making. and Investing in the health of people.

The health status of individuals determines their degree of participation in social life and work, conditioning their productivity at work. On a larger scale, affects the financial impact on national health systems. Investments in the health sector can support economic growth by allowing people to remain healthy and active at work for longer.Another policy in this area is the investment in health promotion among children and youth, contributing to their physical and social development and, ultimately, their preparation to participate fully in society. Investment in health workers is another course of action..Investments to reduce health inequalities. Preventable diseases and deaths due to health inequalities represent a drain on human capital and should be reduced. Universal access to safe, effective and quality health services, greater cooperation between social services and health care and action on risk factors can combine to break the vicious circle of poor health, poverty and exclusion. I recognize that implementation of this policy may require a long period to have real effect on the people (Arbuckle, 2012).

Free Trade Agreements with United States and Canada

The third problem to tackle was  insecurity. Studies have  revealed that the public believed that solutions to such problem should be through a joint action between the government and the community, because the traditional response based on the system of “police, justice and prison” was insufficient to contain the crime. Therefore, I need to articulate an adequate system of prevention and control of crime, which was emerging as the product of a thorough and comprehensive study of the situation in different areas prevailed (Grover, 2007).

The causes of insecurity are, Lack of equal access to education and the labor market, Inadequate living conditions, Presence of high levels of violence, discrimination, intolerance and hopelessness. Existing conflicts in the family, in schools and child abuse charge singular importance, Abuse of drugs and alcohol. Shortcomings in the early years of life (lack of supervision, family breakdown, abuse, trauma). Difficulties in education (behavior problems, truancy and dropout rates, etc, Problems in the functioning of law enforcement agencies and courts.

The diagnosis guided the implementation of the strategy, structured based on different policies for every need, which in turn contain various programs. These policies were applied throughout the national territory through various national, provincial and municipal agencies and jointly by the official, community and private sectors, developing various application programs. Work on the community focuses on creating informational and educational spaces about the magnitude of the criminal problem and its negative consequences for the country, as well as awareness of the conditions that encourage criminal actions and mechanisms created to fight it (Card, Blundell and Freeman, 2004). Other policies to tackle this problem are Plans targeting the family are intended to provide tools for the proper management of conflict situations and / or violent household, from the concept that the conflicting and aggressive family environment makes young people looking for spaces outside the bosom of the family linking, optionally with the criminal world. This policy of improving security guarantees me 33% of the votes in the game.

With regards to taxes, my policy was  to ensure that there is a sustainable government expenditure that ensures people are no overburdened by overtaxation.The importance of indirect taxes in low-income countries is largely due to aspects of tax administration and compliance. It is significantly easier to manage and administer indirect taxes raise income taxes. Customs duties, for example, are relatively easy to collect, that all goods entering the country through a port that can be controlled by tax administrators. All importers who do not fulfill the duties (or do not provide sufficient assurance) are not allowed to withdraw their assets (Hubbard, 2009). The income tax, on the other hand, is much more difficult to manage because the tax can not be collected through physical controls. The authorities rather require you to file a declaration and must invest resources to verify the declared income. The only exception is income taxable by withholding, but even in this case the authorities have to monitor withholding agents to ensure the transfer to the government of taxes withheld. The policy solution to these problems also consists of three parts: First, a recognition that the adaptation of the tax system to achieve a precise balance of social and economic objectives is necessary for example provision of subsidies where necessary , the second can not be achieved some gains by changing the combination of tax direct and indirect, but each instrument specific income should remain relatively well defined; third, the understanding that a sound tax structure without adequate attention to the tax administration is not a desirable tax policy (Singh, 2013). This will ensure that I get a considerable percentage of votes but not enough to get me elected because I only managed to get 40% of the total vote.

I utilised my resources to help work towards the objectives I set for this particular simulation. From this experience I found my weaknesses to be based around focusing on a few areas of investment and taking reactive measures to areas such as crime. Interesting was that  I ended up investing a lot of money into    crime  reduction area , although the area of focus should have been employment creation (Anders, 2010).

I find the topic of sustainability very interesting and something that is a major issue in today’s society, and therefore, to achieve the outcome of GDP and economy, I was significantly focused on three areas of improving GDP, crime and health. From the investment and focus shown through the initiatives outlined in ’Description of Activities’ it is very clear to show that my personal values towards the world’s future were skewed towards these areas. 

Conclusion

Of all these policies, the one that guaranteed me maximum votes and a win was the  one that was to generate GDP growth. that we review in this report have been prolific in economic policies. If political power always tries to guide the evolution of the economy, much more it is doing now, where economic agents themselves ask relief intensely. I saw the face of crisis, companies and financial institutions around the world who have been  performing poorly in the economy .in these simulations only the first p[olicy guaranteed me an outright win in election, thus, it tell you that a lot needs to be done to improve the GDP, ensure that the peoples social welfare is improve, job creation e.t.c. However, other policies in health, security and transport ensured that after implementation I get more than 30% of the total votes.  Thus, the economy generally needs intervention in all spheres as the people felt that all areas needed reforms. However, full implementation of the policies may take a long time to realize the needed change.   

References

Anders, G. (2010). In the shadow of good governance. Leiden: Brill.

Arbuckle, G. (2012). Humanizing Healthcare Reforms. London: Jessica Kingsley Publishers.

Card, D., Blundell, R. and Freeman, R. (2004). Seeking a premier economy. Chicago: University of Chicago Press.

Grover, J. (2007). Healthcare. Detroit: Greenhaven Press.

Hubbard, R. (2009). Macro economics. Frenchs Forest, N.S.W.: Pearson Prentice Hall.

Jomo K. S., and Chowdhury, A. (2012). Is good governance good for development?. London: Bloomsbury Academic.

Mukhopadhyay, S. and Sudarshan, R. (2003). Tracking gender equity under economic reforms. Ottawa: International Development Research Centre.

Munshi, S. and Abraham, B. (2004). Good governance, democratic societies and globalisation. New Delhi: SAGE Publications.

Okma, K. (2009). Six countries, six reform models–the healthcare reform experience of Israel, the Netherlands, New Zealand, Singapore, Switzerland, and Taiwan. New Jersey: World Scientific.

Singh, S. (2013). Macro economics. New Delhi: APH Pub. Corp.