Question

'It is said that countries with a small government and free markets are the ones that grow and develop are able to catch up with more advanced economies.'

Discuss using two developing countries why the above statement might hold value.

I need help with what to write and which two countries to pick.

Thanks in advance.

Answer 1

Countries with small govt and free markets are the one's that grows and develop , and also catch up with large and advanced economies. Many developmental theorists suggest that the trajectory of small nations , with smaller govt and social backwardness , actually grow faster than any growing economy and the rate is even higher compared to developed nations. This is because the higher rate of potential of growth in economy along with steady and growing progress , helps in unleashing untapped potential both of labour force and capital forces.

Successful examples of this kind of patterns are Japan and Australia. Both were small developing nations. Australia having a very limited labour force while Japan facing horrific post war effects. Both these nations tapped into the technological development aspects , creating world class labour force and generating capital for country and its individuals. Both nations have had progressive influence of culture and open to growth and development. Govt are small and clear about growth goals .Over the years , these countries following the growth pattern are counted as the developed nations .