Question

What specific things should Egypt, Mexico, and Peru do to promote economic growth?

Answer 1

Egypt, Mexico, and Peru are all emerging countries with huge labour market. Its economic growth has drastically fluctuated over the years because of unstable political regimes and corrupt officials. In order to promote economic growth, it could focus on its extensive labour market to create employment opportunities, extensive capital movement so that foreign money is invested for economic development.

Additionally inflation rate in these countries is also very high, thus the government will have to create stable supply chains for agricultural produce and other goods and services, so that there is no severe demand pull or cost push inflation arising in these countries. High inflation leads to less real growth in output and less purchasing power as the currency value declines drastically.

For stable economic growth, currently it has to rely more on foreign markets and instability in those markets quickly creates hardships in the domestic market. Thus it has to increase domestic demand for goods and services and propel domestic industries, create strong domestic platforms by inviting foreign investment in local industries so that local markets are able to manufacture goods and services and do not have to rely on imports.  

Create stable political regimes and elect young entrepreneurs who know how to bring about economic development and growth via efficient accountability, make the domestic economy self reliant and generate employment opportunities, only then will the countries be able to experience stable economic growth.