Strategies for Stability
Stability within a country often coincides with strong economic and domestic policies that create an ideal environment wherein businesses and various industries can operate without fear of sudden destabilizing economic events.
As such, in order to attract foreign direct investments it would be necessary to develop strong fiscal policies that focus on limiting currency fluctuation, ensuring that inflation is kept under control while at the same time focusing on a development strategy that emphasizes on the creation of private-public partnerships for various infrastructure development projects throughout the cities of the country.
It is expected that by keeping a tight rein on local banking policies through the central bank it would be possible to create a banking environment that focuses more on internal lending to various local corporations and entrepreneurs rather than investing into international markets. By doing so, this creates a platform by which local industries may sufficiently develop to a point that they become competitive in the international market through the sale of a variety of goods and services.
Not only that, by developing special economic zones within the country that have no government tax rates this should encourage various corporations to outsource aspects of their operations and manufacturing processes to our country in order to take advantage of the encouraging business (Yang et al., 2012).
This as a result would create higher local employment rates resulting in increased government tax revenue as well as create a society that has higher levels of localized demand for consumer products. The end result would be a stable local economy with high industrial outputs that would seem ideal for foreign direct investments.
Strategies for Growth Potential
Before proceeding any further it must be noted that the growth potential of any country is inherently connected to the skill sets possessed by the local population. As evidenced by the case of the Philippines which is known for the quality of its local and overseas workers, having a well educated and skilled population can do wonders for any company that chooses to invest within the country.
It is based on this that the development of government funded technical skill centers will be implemented so as to create a better skilled and more educated work force that would be able to address a wide variety of potential industries that may establish themselves within the country as a result of foreign direct investments (Kelly and Scott, 2012).
Aside from this, in order to assure investors of accurate growth projections of the country’s industrial infrastructure it will be necessary to implement not only a greater degree of transparency within the government in order to reduce instances of corruption but it would also be necessary to focus on the development of a strong utilities sector that could serve the energy needs of a developing industrial base.
What must be understood is that an overly corrupt government casts a considerable degree of doubt on the country’s growth potential due to the creation of a competitive environment that focuses on who can give the bigger bribe rather than who could create the largest amount of benefit for the country.
By implementing various methods of transparency in government proceedings this as a result would show investors the commitment of the local government towards improving the local business environment in such a way that their investment within the country can be considered relatively safe and would result in considerable gains over the long term.
Reference List
Kelly, S., & Scott, D. (2012). Relationship benefits: Conceptualization and measurement in a business-to-business environment. International Small Business Journal, 30(3), 310-339.
Yang, Y., Wang, Q., Zhu, H., & Wu, G. (2012). What Are the Effective Strategic Orientations for New Product Success under Different Environments? An Empirical Study of Chinese Businesses. Journal Of Product Innovation Management, 29(2), 166-179