One of the most crucial missions of the World Bank is poverty alleviation among the developing economies. The World Bank has since focused on six strategic themes to support their missions, in so doing, they have offered financial, technical and other forms of assistance in promoting economic growth in the developing economies. The themes of the World Bank squarely focus on the middle income, fragile and countries affected by post-conflict consequences. In addition, the bank has heavily invested in the production of global public goods, education, and agriculture in promoting economic growth in potential and promising economies. This paper highlights the methods I deem effective in promoting economic growth and development among the newly industrialized nations such as Hong Kong and Singapore in response to the request by the World Bank to provide appropriate advice.
Methods currently being used for Economic Growth
To begin with, Hong Kong and Singapore served as potential and newly industrialized nations by the early 80s because of their economic measurement scales compared to the rest of the world. The current methods applicable in promoting economic growth for typical firms in both Singapore and Hong Kong include the division of labor system where the prices of commodities were determined by the market forces in achieving industrial stability. In addition, the two countries have formulated a taxation system that makes trade possible for small firms to penetrate into the global scene. More importantly, the use of modern technology in the production processes offers the most effective method of production because it enables typical firms in both countries to increase their productivity while minimizing costs. Secondly, the current taxation systems in both countries allow for capital accumulation because they promote direct foreign investments in both countries. Consequently, low taxes encourage savings and investments among the firms, increased productive capacity, creation of more employment opportunities, and improved purchasing power (Collier, Dollar, & World Bank, 2002). Finally, the establishment of property rights by both governments has encouraged innovation, efficient stock market operation, and monetary freedoms in the stock market. Considering the current strategies in promoting economic growth for typical firms in both Singapore and Hong Kong, I would advise the World Bank to finance the adoption of new technologies in the production process as this would increase productivity and cost minimization for the typical firms in both countries.
The rationale for my choice
Due to the widespread need to undertake adjustments in national policies, I would encourage the World Bank to support investments in technology and social stability in attaining a more sustainable economy for these firms in Singapore and Hong Kong. Boosting the economic growth of the typical firm in both Hong Kong and Singapore calls for the implementation of modern technology in all lines of production. With proper investments in modern technology, the typical firms in these countries aim at improved global governance and remarkable progress in the fight against the ever-increasing competition in the world. Technological advancement would ensure the identification of talents leading to increased innovation in the manufacturing sector among the developing firms. As Reinalda (2009) denotes, dramatic technological transformation among the newly industrialized countries enables the firms operating in such countries to produce complex and unique products leading to an increased competitive edge in the market.
In summary, it would be prudent to follow the economic strategies discussed in this paper in promoting economic growth because these items work towards the realization of the World Bank mission for developing economies. The implementation of new technology, effective taxation laws, and conglomerations are vital factors in promoting economic growth for any developing firm or economy because of the economies of scale benefits associated with such practices.
References
Collier, P., Dollar, D., & World Bank. (2002). Globalization, growth, and poverty: Building an inclusive world economy. Washington, DC: World Bank
Reinalda, B. (2009). Routledge history of international organizations: From 1815 to the present day. London: Routledge