The development of nations occurs on a constant
basis. The policies leaders put in place have a huge impact on the success of
any nation and can have long-lasting impacts. A paper by Carmignani &
Chowdhury (2010) discusses how specific and broad focus impacts growth. They
elaborate on four scenarios of development and the outcomes of each.
Positive
Growth and Decreasing Inequality: Occurs when there is
growth in the economy but greater mobility of the classes.
Positive
Growth and Increasing Inequality: Occurs when there is growth
in the economy but that growth impacts one class over another.
Negative
Growth and Decreasing Inequality: Occurs when growth is
negative but there is greater mobility among the classes.
Negative
Growth and Inequality: Occurs when growth is negative but
it impacts one class over another.
The authors found through their analysis that strong
policies and infrastructure improvements help create the right opportunities
for a positive growth and decreasing inequality situation. Countries are not
limited by their geographical locations, resources, or population. Any country
can improve their standing by having the right policies and infrastructure.
Policies have legal implications for businesses and
help create an environment for growth. The way in which companies structure,
operate and develop are based in part on how they work within particular environments.
Policies should focus on business and employment growth and ensure that the
environment allows for proper wealth distribution and class mobility.
Likewise, the infrastructure of a nation naturally
can impact the success of business within a particular environment. Proper
infrastructure will help ensure that products move quickly, information is
transferred appropriately, and money moves easily. Infrastructure encourages
growth from the foundations of an economy.
Carmignani, F. & Chowdhury, A. (2011). Four
scenarios of development and the role of economic policy. Journal of Developmental Studies, 47 (3).
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