Economic Development in Periphery - Report
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Added on 2020-01-23
Economic Development in Periphery - Report
Added on 2020-01-23
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ECONOMICDEVELOPMENT INTHE PERIPHERY
Economic development means a development of the nation which includes theimprovement in the economic, social, and political and the well being of the people. It basicallymeans the policy and the procedures by which any nation improves its entire nation as whole.With the coming years the economic development of any country has grown to a great extent.The economic development is incomplete without the Economic System (Engerman, 2016).Economic System is basically a system of production, distribution and consumption of the goodsand services produced in the entire nation. The economic systems cannot function without therelationship between the individuals and the institutions. There are mainly three types ofeconomy present in the worlds which may be defined as the Capitalism Economy, in this type ofthe economy everything is controlled by the private ownership and nothing is in control of thepeople from the point of production, distribution and the distribution of the goods and theservices (Triari, 2017). This system is based on the demand and the supply function. The majordrawback of this system is the existence of inequality among the society. The next system is theSocialism Economy which includes that the entire systems are under the hands of society fromthe beginning to the end. The last type is that of the Mixed Economy which is the combinationof the capitalism and the socialistic economy. Here the control lays both in the hands of theprivate entities and the society as well as thus it manages to overcome the drawbacks of both theeconomic system.The economy of Australia has been a mixed economy and has been the largest economyin the world. The main sectors in the economy may be the Agriculture sector, the manufacturingsector and the service sector but when the economy of Australia is seen, we can infer that theeconomy has been dominated by the service sector. For any economy there exist manyopportunities and challenges which one has to overcome to become a leader over the globe. Onewrong step can turn the entire nation’s economy to decline. Hence there comes the importance ofthe balancing the position as well keeping an eye on the challenges (Pugalis, 2017). As the gainof one country makes the other country to lose its position. Hence this means one country atstake for the benefit of other country. Australia being the world’s largest island comprised of the2.9 million square miles and six states as well with among the one of the wealthiest country aswell.The economic development of Australia marked its beginning from the year 1980 withthe commencement of the economic liberalization which means that the government regulations
and restrictions were reduced and the active participation was introduced by the private entities.From the year 1990 this marked the beginning of the recession which resulted in the collapse ofthe stock market which not only impacted the nation’s economy but created a huge mark on theglobal economy as well (Easterly, 2016). This was in turning the financial crisis which was metby the government the major organizations began to mark their presence by helping or aiding thenation with the funds so as to stabilized the economy as the whole.Another impact is that of the mining industry which increase the economic growth in thepost war period. This lead to the expansion and the modernization of the transport,communication and urban infrastructure (N.G, 2013). The development in the export sector hasrisen to the Gross Domestic Product (GDP) level of the nation. As we know the services sectorshas contributed a lot in the development of the economy. As they are the supporting andauxiliary activities which not only provides the employment opportunities but also is a good signfrom the investment purposes. The service sector of Australia has contributed around 53% of theeconomy and the employment opportunities provided by them have increases to 59%. source: The Conversation There were many Political Implications that impacted the economy. Those factors werethe political factors which marked the highest political stability among the other nations. TheAustralian Constitution is a federal system of government which was distributed equally and alsoit consisted the six states and two territories. It consists of a federation and a parliamentarydemocracy (McCombie, 2016). There were two houses or parliament and both houses decide on
the same thing in same sense. Hence above are the Political Implications which in turn affectsthe economy as a whole.Next is the Economic Implication which implies the economic inequality which meansthe access to the income and wealth as we know the main source of income arises from thewages and the salaries. And the main element which reduced the incomes is the taxes which onepays for the income they earned over the year. It not necessary that a rich country alwaysfollows the equality aspect and there are chances that even a poor country may be relativelyequal in terms of the other country (Baker,, 2015). The main factor of the inequality is the risingnumber of poor people residing in the country as they cannot perform as much as the otherpeople can perform. There exists various economic issues such as regarding the health and thesafety of the people as this in turn affects the productive levels of the nation. The education facilities creates a difference among the developed and less developedpeople of the nation as that has a huge role in shaping the future of the people who are the assetsfor the nations that reduces the performance of the people. And the overall implications comes isover the economy (Wimo ,2013). The economic growth of any nation marks with the beginningof the equality which will in turn lead to the stable economy. As economic instability comeswhen the people with money does not spends the money and rather thinks of saving the moneyfor the future use which in turn disturbs the demand in the market and further leads to the slowerdown of the economy. Hence inequality has a huge impact on the overall economy. The Public Policy also has the huge implication on the Australian economy. Publicpolicy basically means the policy or rules which the government uses it to control the generalpublic. To solve the public issues and conflicts the framework of public policy is required.There is involvement of lot many people in framing the public policy such as individuals,government, cooperation and some non profit organizations (Herndon ,2014). It plays a majorrole in developing the economy by providing the equality in their profit sharing and increasingthe productivity as well. As the slower increase in the productivity leads to the shortfall in theGross Domestic Product (GDP) and also the innovation. Public policy also includes threwwelfare of the society as well and include the development projects like the construction theroads, bridges, sanitation facilities infrastructure for public health etc. This in turn increases theeconomic condition of the Australia.
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