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To begin with, some countries have retrogressive market instruments that do not accord a reflection on the financial ability. Such countries have inflexible market structures that do not have a progressive record. For…
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Macro and Micro economics Macro and Micro economics Question Reducing aid flow to some countries is a financial regress. To begin with, some countries have retrogressive market instruments that do not accord a reflection on the financial ability. Such countries have inflexible market structures that do not have a progressive record. For instance, many of the markets concentrate on particular goods and services. The sale of such goods and services is a rampant idea in the market that makes people to adhere to the business. Incepting new ideas in the market is a retrogressive idea that does not bring out any importance. Therefore, such markets rely on foreign aid as a major source of income in the market (Moyo, 2011). The reliance on the foreign aid from other countries is rampant such that the country and economy view it as a basic induction. Killing foreign aid in such market structures is a negativity that will plunge the people into abject poverty.
Insufficient research in the market structures is a vital subject that leads to a flop in the market instruments. In many cases, foreign countries force some of the poor countries to indulge in some activities that are considered to be lucrative. Though they accord the relevant funding to such activities, they do not reflect the vital ideas that should be considered in the markets. First, for an effective market structure, there is a need to focus on the market structures. This is by conducting sufficient research. For instance, china is in great demand for resources emanating from Africa. However, it is not obvious that Africa is demanding the same from china (Moyo, 2011). Therefore, reflecting on such factors is an issue that should be considered. Secondly, sufficient research on the demography is to be encompassed. The population demand in China is not the same in Africa. Therefore, the demand for goods in the markets is different. Imposing similar projects in the two regions is more unlikely to be successful.
Secondly, market instruments are not recording success in the stated countries due to Unprofessional Labor force. In China, the government invests an arguably large amount of capital in training their work-force. This is an activity that is widely practiced across the national divide. Therefore, the country boasts of having professional and trained personnel. With such notations in the economy, the country has been recorded among the countries with the rapidly growing economy alongside the United States and Canada (Moyo, 2011). It is palpable that trained and educated personnel will reflect a better performance in their work places. This is due to effective and efficient use of their educational experience in their work places. In such events, the economy will record a positive growth as the people will produce quality products. However, some continents like Africa rely on a large number of unprofessional and untrained workers. The workers learn by apprenticeship. With such prevailing situations, the workers do not relate quality products in their work places. This shows the difference in the market instruments and why they do not work in the different regions.
China and other developed countries have been using technology since time immemorial. With increase in their technology, the countries are gaining more in their economy. They are ensuring their economy is technologically advanced. With such situational advancement, the countries are performing better in their economy. Since they need to reflect the same to African countries, they fail in the same projects (Moyo, 2011). This is due to the technological backwardness of some countries. Some countries revert to using manual labor in the same projects. This results to low quality productions and reduced accrual. Therefore, for successful projects in the countries requesting for aid, the concerned countries should consider ceteris paribus as a factor.
Question 2
Use of diverse remedies in the dead aid proposal is a positive induction. This is due to the focus on the prevailing issues and the modifications that should be done with such issues. For instance, taking diverse opinions on some issues like agriculture is a positive induction. Some places are considered to be amply fertile. These are areas that reflect a large growth in agricultural orientation. However, some countries have poor soil orientation, deeming agriculture as a retrogressive practice. Therefore, these two areas have to be utilized in different areas of the economy. Primarily, rich agricultural lands should be specialized for agricultural extensions (Moyo, 2011). This will swerve the production to a more elaborate production in the economy. On the other hand, lands that do not support agriculture could be used in a more diverse way, like setting industries. The industries would be sued to manufacture the agricultural products from the rich agricultural land. With these inductions, the economy would have more diverse instances of producing revenue to the country. In the end, such countries will be on the forefront of economic development. Secondly, the countries should strategize on modified and scientific farming. Though scientific farming has been met with abject opposition, it is a more applicable way of reducing foreign aid to countries. The scientific farming takes an arguably short time to mature. In the end, the people involved in such activities will have increased turn out of the bumper harvests. This is due to the increase in the number of harvests.
Lastly, diverse casual insights would be of help if the concerned parties encompass the use of machinery and equipment in the affected places (Moyo, 2011). Most of the developed countries have reverted from manual laboring to machine laboring. This has reflected on the performance and quality. Therefore, for a successful projection, the aid should be directed towards acquiring machine and equipment. This will help in increasing the productions criteria.
References
Moyo D. (2011) Dead Aid: Why Aid is Not Working and how There is Another Way for Africa. London: Penguin Books Limited. Read More
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