Government Policies for Long term Economic Growth

It is worth noting that with an economic stability in a country, other macroeconomic objectives can as well be achieved by a government. These macroeconomic objectives may take account of; sustainable growth as well as stable commodity prices. In this regard, there is an urgency in which a government needs to implement policies which can then permit it to realize a sustainable growth and development (Penn, 2015). However, before looking into these possible policies hereunder, it is equally important to point out that for the government to develop its economies, the following key issues must also be involved: 1. An export oriented economic development: this involves an attempt to reduce the tariff hindrances and promote a free trade with the neighboring countries 2. For the effectiveness of this policy, the following graph may be considered appropriate.

Investment in Public Services There has ever been a market failure in the areas such as transport system, education and healthcare. It should be noted that a free market cannot provide for necessary and sufficient education (Conway et al. The fundamental factor to be considered by a government in its attempt to improve its economic development agenda is to consider increasing the levels of numeracy and literacy. It therefore worth noting that without proper training and education systems, a government can find it very difficult to develop its economy. Human capital development: The government can implement this policy through investment in human capital. This can be done through the allocation of more resources to cater for training and educational expenses (Xu, & Li, 2014).

Even though the implementation of this policy is to some extent critical to the success of the developed and developing economies, it should be noted that the implementation of this policy provides knowledge and fundamental skills which would then result into the increased efficiency and productivity. c. Providing incentives: National governments can take an initiative of providing necessary incentives to groups or individuals for starting their own businesses. Infrastructure: This is the most important policy that must be implemented by any government which desires to have a sustainable economic development because it is the mother of all the above policies (Hilliard, 2010). Without it, no policy can work effectively. Good infrastructure is central to long-term economic development because it even promotes long term development and growth in a globalized environment like the world of today.

In fact, a good infrastructure can enable the transportation of outputs at a considerably low cost European Evidence What has history demonstrated to us? It has been confirmed through a number of studies that the economic policies that were implemented in Europe between 1970s and 1990s performed very poorly in the stabilization of their economies (Organisation For Economic Co-Operation and Development. Throughout some episodes, the economic policies have even resulted into economic fluctuations instead of moderation. , FLORES, E. , & MOULIN, L.  Policy instruments for sound fiscal policies ;Fiscal rules and institutions. Basingstoke, Palgrave Macmillan. CONWAY, M. umi. com/pqdweb?did=2069779161&sid=1&Fmt=2&clientId=48051&RQT=309&VName=PQD. HOOVER, H. , & MYERS, W. S. mil/docs/citations/ADA479016. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT.  Human Capital Investment An international Comparison.