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Global Economics

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Unit 5 Individual Project: Global Economics
Eric Bebber
AIU Online
07/08/12

Unit 5 Individual Project: Global Economics The World Bank employs many methods to encourage economic growth in various developing nations. The most crucial of these methods used in Hong Kong and Singapore was the advisement to make the transition from communist command economies to a market economy. This means that rather than the government controlling what goods and services the country produces and controlling the allocation, consumption, and distribution of resources the market determines these factors. Also rather than workers being employed by the state and receiving whatever wages deemed necessary by the government, the workers’ wages are set according to competitive rates. The most developed countries in the world all have market economies. Therefore one can only assume it was appropriate to encourage these countries to transition from command to market economies. Human capital is a very valuable asset to economic growth. This is why the World Bank has placed great emphasis on the education of these countries’ workforces. The better education workers receive, the more apt they will be to fill important jobs. Lastly, a method for growing the economy highly recommended is technological innovation. More technologically advanced facilities mean better efficiency. The more efficient companies are, the greater their profits and the more they stimulate the economy. I would suggest technological advancement for companies of any country. Not only does this make the companies more efficient, but it creates better opportunity for workers. Technological advancements can also make the work place safer. Combine the technological advancements with better trained human capital and it is almost impossible not to see growth in the economy.

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