Analyzing the World Bank Policies in Singapore and Hong Kong - Term Paper Example

Economic Growth and Stability The world operates in different economies. The World Bank has the mandate to focus on the negatives of different economies and ensure parity in the nature of resource allocation and distribution. The World Bank agenda are based on utilizing the available resources to ensure competiveness and effectiveness in the world economies. These policies are aimed at ensuring the new industrialized countries sustain their economies. The essay will focus on Singapore and Hong Kong with the aim of analyzing the World Bank policies on new industrialized countries. Effectiveness of any policies is on evaluated on the implementation stage. The feasibility of any policy is essential, as it will determine the number of adjustments to be put in place to ensure maximum benefit. The World Bank applies policies based on sustainability. The advice given to new industrialized countries are based on economic growth and utilizing on the local potential. In Singapore, the balance is found between the social and economic spaces. The government polices are aimed at maintaining the balance between growth and social priorities. The steady economic growth measured based on GDP indicate the positive local models and the World Bank aims at ensuring financial and consultative aid is provided the country boast of economic stability (Page, 1994). However the local population required a sustainable model that balance between economic growth and social require are met. Social demands in this case imply the educational system and the healthcare provision. The country has been advised to focus on the educational system. The current curriculum should focus on productivity and evaluated based on quality rather than accessibility. In this case investment opportunities are introduced in the learning institution. The model is aimed at securing the future of investments and ensures continuous growth across the nation. Through education the country is able to plan for the future having secured the employment demand. The current educational system focuses on innovation and independent investments (Page, 1994). The educational system ensures continuous supply of labor while at the same time creating room for entrepreneurs. In Hong Kong, the focus is on the social policy is utilized to create a balance between the market demand and supply of labor. The aim is to empower local population hence reducing the rate of employment. High wages are to be triggered by the supply of skilled labor to the market. This implies increasing the local population purchasing power. Affordability based on high income will imply that the economy stabilizes as a change in prices of commodity will not reducing spending among the local population. Working on the strengths of the market and aiming at developing a strategy that will have a positive impact on the purchasing power parity will be the aim of the educational system (Page, 1994). The educational sector is open to immigrants hence reducing setbacks of the economic growth caused by unemployment or social disparities. The equality in the income distribution in both Singapore and Hong Kong is triggered by the educational policies kept in place. The New industrial countries illustrate a balance between income and economic growth. The two countries concentrate on currency stability. This implies that applying both fiscal and monetary policies to stabilize the local currency this will increase trade as people will focus on trading with the two countries based on the value of the local currency. The stabilized currency will increase the local trade and widen the international market. According to Hong Kong Monetary Authority [HKMA] (2012), the stability is ensured by models that are bases on adjustment of interest rates depending on the economic stability. The adjustments are based on the inflow and outflow of capital. The national adapted a similar approach as far as exchange rates are concern. The East Asian states concentrated on determining the values of the local population. The economic stability allows investments from locals. The monetary policy from the World Bank ensures the countries create a more comprehensive approach to investors. According to World Bank reports the two countries where ranked as the most accommodative nations to both local and international investors (Khan, 2001). This is due to the countries monetary policies towards new ventures. The governments reduce the financial burdens accompanying new ventures. The attractive nature of the new industrialized nations has ensured that the labor supply is satisfied. The World Bank encourages local investors by working with the national government to offered incentives. The new ventures operate in a competitive environment that has a steady supply of labor and has a ready market. Both the fiscal and monetary policies put in place are aimed at creating market for the goods produced and supplying the excess output to the international market as exports (Page, 1994). The monetary policy advised by the World Bank is the most effective given the fact it gives into account the needs of local and international investors. Investors in this case focus on models that ensure they maximize their output by concentrating on the market supply of skilled labor. The avenues laid to ensure the markets expand have been essential in ensuring stability in Singapore and Hong Kong (Page, 1994). The government polices allow the local and international investors to dominate the production industry, in return offer employment opportunities to the local population. Employment opportunities imply that the market becomes effective to both the producers and consumers. The employment opportunities offered by the market increase the potential of the locals to increase spending. In conclusion, the compressive approach has been effective in placing Singapore and Hong Kong among the elite in terms of economic stability. The social concepts are essential in determining policies employed by the government in stabilizing the economy. Advise offered by the World Bank is aimed at ensuring the policies deployed by a given country are sustainable are amid at economic growth. The core objective of any nation is to satisfy the internal demand and work with the external environments to ensure economic growth. The short-term plans are based on employing the population and creating opportunities. The long run plans are aimed at ensuring quality labor supply. The goal is ensure the educational systems play an important role in ensuring the market labor demand and supply are satisfied. Reference Hong Kong Monetary Authority. (2012). An Introduction to the Hong Kong Monetary Authority. Retrieved from http://www.hkma.gov.hk/media/eng/publication-and-research/reference-materials/intro_to_hkma.pdf Khan, H. (2001). Social Policy in Singapore: A Confucian Model. Washington, DC: The International Bank for Reconstruction and Development. Page, J. (1994).The East Asian Miracle: Four Lessons for Development Policy. Macroeconomics Annual, 9 219 – 282 Read More