Question

Select at least three economic development tools (methods of business attraction, retention, entrepreneurship, etc.) and describe how you would implement them at the state or local level. Why did you select these tools and how would they work together to promote a coherent economic development strategy? Would your tools target a specific stage or types of businesses? What barriers would you face in implementing these methods and how would you overcome those barriers?

Answer 1

Economic development at local and state level needs ease of doing business, skill imparting and entrepreneurship developing institutes, supporting infrastructure, ease of transport and communication and quality health and education.

Ease of doing business, skill mission and infrastructure development are selected for discussion. They are selected becauase they are basic to economic development and this process will not start unless they are achieved.

World bank publishes ease of doing business index. On same lines country can have local and state level indices that shows all parameters like ease of entry, average set up time, labor laws, business closing procedure and average time etc.

Skill missions to impart vocational skills for self employed can be run. They help is starting small scale businesses, generate massive employment opportunities.

State should look after infrastructure set up which any business needs. Storage transport will reduce losses and improve profits.

Factors listed above for all businesses. Especially for developing countries.

Barriers are: Finance - Huge investments are needed and returns take time.

poverty trap- If a country is in poverty trap then it will find it difficult to implement.

low availibility of skilled people to implement these ways:

Time: Time taken is high.

Remedies: Aid from multilateral agencies like world bank.

Project and program based assistance from experts.

Consensus in govt about development plan and proper implementation through govt. machinery.