Turning to a Market Economy

Turning to a Market Economy”

Please respond to the following:

Select a country in the Global South that has been in the news recently. Visit a reputable Website, newspaper, or TV broadcast to catch up on the latest events relating to the economic development of the country

Many developing countries in the “Global South” turned to socialism in the past as a means to solve their economic problems. Now, in the light of the evident failure of socialism, many of these countries seek to create fast growth through the establishment of “market economies.”

The country I selected is India.

•Using the country you researched in the e-Activity of the, identify which five market economy policies the country appears to be following. Explain how you reached this conclusion.

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and have served to accelerate the country’s growth

http://www.forbes.com/places/india/

India and the Trade Market Economic:

In early 1990s the Indian economy had witnessed dramatic policy changes. The idea behind the new economic model known as Liberalization, Privatization and Globalization in India (LPG), was to make the Indian economy one of the fastest growing economies in the world.

http://www.tradechakra.com/indian-economy/globalization.html

India and Education:

The Indian education is growing. The government is improving the quality of the education.

India has around 367 universities, 18,000 colleges, about half a million teachers, and 11 million pupils. The private education industry is estimated to be between 20,000–25,000 crores. There are about 1,500 management institutes, 3,500 engineering institutes, and 1,200 medical colleges in the country.

http://investinindia.com/industry/education/education-industry

India has capitalized on its large educated English-speaking population to become a major exporter of information technology services, business outsourcing services, and software workers.

http://www.nationmaster.com/country-info/stats/Economy/Economy/Overview

•Speculate about the likelihood of success of achieving a prosperous market economy for the country you researched.

In 2010, the Indian economy rebounded robustly from the global financial crisis – in large part because of strong domestic demand – and growth exceeded 8% year-on-year in real terms. However, India’s economic growth began slowing in 2011 because of a slowdown in government spending and a decline in investment, caused by investor pessimism about the government’s commitment to further economic reforms and about the global situation. High international crude prices have exacerbated the government’s fuel subsidy expenditures, contributing to a higher fiscal deficit and a worsening current account deficit. In late 2012, the Indian Government announced additional reforms and deficit reduction measures to reverse India’s slowdown, including allowing higher levels of foreign participation in direct investment in the economy. The outlook for India’s medium-term growth is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has yet to fully address, including poverty, corruption, violence and discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decades-long civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural employment opportunities, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.

http://www.nationmaster.com/country-info/stats/Economy/Economy/Overview

•Explain which of the policies is most effective and least effective for the country you researched? Provide a rationale with your answer.

In my opinion the most effective policy is the Education and the Trade in both areas they are related with US.

The United States and India share a strong and growing economic relationship, driven by entrepreneurial and visionary individuals, institutions, and businesses in both countries. This engagement, including trade, education, cultural, and familial ties, has always been at the leading edge of the U.S.-India relationship and strategic partnership, and continues to expand. Our bilateral trade expanded from $19 billion in 2000 to $95 billion in 2013. U.S. goods exports to India totaled $35 billion last year, supporting an estimated 168,000 U.S. jobs. Cumulative Indian investment in the United States totaled $9 billion in 2012, supporting 100,000 jobs; U.S. investment into India exceeded $28 billion, and a survey of the largest U.S. employers in India indicates that U.S. investment supports half a million jobs in India.

Higher education is a vital part of our economic engagement. Indian students comprise the second-largest group of foreign students in the United States, with approximately 100,000 students studying in the United States in 2012-13. These students contribute over $3 billion to the U.S. economy every year, creating one American job for every three students. They advance innovation and research in our universities. With support from the U.S.-India Higher Education Dialogue, U.S. community colleges partner with Indian institutions to enhance economic opportunity in India through adoption of the community college education model and skills development best practices.

http://www.state.gov/r/pa/prs/ps/2014/07/230048.htm

“Market Economy is where economic decisions are made by the free market. That means production of goods and services are regulated by the laws of supply and demand”.

http://useconomy.about.com/od/US-Economy-Theory/a/Market-Economy.htm

“Socialism, similar to communism, advocates that the means of production be owned by the people, either directly or through government agencies”

http://www.investopedia.com/articles/investing/081514/socialist-economies-how-china-cuba-and-north-korea-work.asp