The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help. Using the Internet, library, or other resources, research and briefly explain 23 methods currently being used to encourage e - Essay Example

Improving Economic Growth in Industrializing Countries Improving Economic Growth in Industrializing Countries Introduction The twocountries, though Hong Kong is a southern city of China are described as developing countries. Singapore and Hong Kong are in the mid of developing and first world countries. The two countries have also changed the base of economic sources from agriculture to industrialized economy. However, the changes in the economy like any other developing country, the two countries have had help from the World Bank.

The institution is a source of financial as well as technical support to any state that seeks help from it. The case of Singapore and Hong Kong, the two countries has chosen the most admirable paths to attain the best economy globally. Hong Kong and Singapore uses different models in an effort to build the economy. Hong Kong is among the top destination countries for business. It appears second among the top best business countries globally. Singapore, Hong Kong and other developing countries should consider the following strategies for better growth of their economy.

Hong Kong and Singapore are used as example. The methods include; taxation laws, trade associations and Property rights. Trade associations Just like any other country that wishes to improve its economy, Singapore should join hands with other Asian countries in associations such as Association of Southeast Asian Nations. Such step is important because Singapore gets an opportunity to be part of the largest Asian trade association. Similarly, Hong Kong can do the same; it will be beneficial for both countries economically.

The trade association is important for members because they can negotiate the removal of specific tariffs. It is important to note that tariffs affect some goods and discourages trade between states. The trade association also gives an opportunity to countries to air their views concerning the industry and technical issues. Members are also guided by the Commerce Act to prevent cases of anti-competitive behaviour. It is, therefore, advisable for any industrialized countries to form or join trade associations.

The case of Hong Kong and Singapore joining Association is the best example to improve the economy. Poverty reduction and economic growth are some aspects that result from the trade association. It also goes to improve the living standards of the members (Guidelines for Trade Associations Commerce Act, 2014). Taxation Laws The taxation laws should also be the top priority for Hong Kong and Singapore as well as any other industrialized country. A state must be able to maintain its infrastructure continually to sustain the growing business.

Additionally, it must be able to provide services to the citizens and the business owners. If this goes well, the country will be the most attractive to the new investors because they are sure that their businesses would be safe. Hong Kong and Singapore maintain different levels of taxes. For example, while Singapore levies high taxes on businesses, the level of taxes in Hong Kong are low. However, the disparity depends on the number of taxpayers. Taxes in Hong Kong are low, but the state is still able to sustain economic growth and businesses within the country.

The fact is that some investors are likely to be attracted by low taxes. As such, they move in and set up their businesses. Additionally, an increase in the number of businesses means more people move in for job opportunities. It is, therefore, beneficial to the government because taxpayers increase despite the low rate of taxes levied by the government. Some countries prosper economically than others, and questions arise as to why such countries develop economically far more than others. Tax policies are some factors that move a country to a high level economically.

Tax laws provide the existing region with the resources needed to run its affairs. As such, the government avoid the expenditure of important and scarce resources or resources that are useful in improving the economy. Tax policies also open doors for foreign trade as well as the investment. For example, Hong Kong low tax policy is favourable to investors. Studies above clearly indicate the importance of tax laws to industrializing countries. Countries like Singapore and Hong Kong have benefited immensely from policies relating to taxes.

As such, industrializing countries should consider this method as the top strategy for improving their economy (Beach, 1998). Property Rights As indicated above, it is possible to find some countries with massive human and natural resources but with the low economy. On the other hand, some countries have less natural and human resources yet they flourish economically. The best examples of poor countries with massive resources are some African countries. Conversely, Hong Kong is among the top countries economically with fewer resources.

What could have increased Hong Kong economy? Property right has revived and improved the economy in some countries including Hong Kong and Singapore. There are other factors that make Hong Kong and Singapore attractive for investors. Such factors include technology, investor protection, trade freedom and stock market performance. It is important for investors understand property rights in an economy. People and business owners must engage in business knowing that they own something. In a situation where the business owners are afraid that the government can confiscate their property because of laws enacted by the same government, the business cannot prosper.

The fact is that the business owner cannot pump in more resources to their business because they have no confidence in the government. A country that with to improve its economy must put property rights among the top strategies for economic growth (Powell, 2002). Among the three methods, the best strategy for economic growth based on my view is the taxation laws. I have chosen this method because it favours two sides, the government and the investors. In addition, taxation laws whether low or high, it stills improves the economy.

As mentioned earlier, Hong Kong taxes on business are less as compared to Singapore. However, the difference does not mean the other country with more taxes improves economically than the country with fewer taxes levied on businesses. Countries that impose low taxes attract more businesses and workers. More workers and businesses to the economy lead to more taxes. References Beach, W.,W. (1998). Why taxes affect economic growth. Retrieved from http://www.heritage.org/research/lecture/why-taxes-affect-economic-growth Guidelines for Trade Associations Commerce Act.

Commerce commission New Zealand (2014). Retrieved from Powell, B. (2002). Private Property Rights, Economic Freedom, and Well Being. Mercatus Center at George Mason University