One of the major considerations that led to the nationalization of the fourteen major commercial banks of India in was the fact that banks, in general, had been negligent of the vital priority sectors of the economy, viz.
Contact Author Source Industrialization plays a vital role in the economic development of underdeveloped countries.
As the historical record shows, the developed countries of the world broke the vicious cycle of poverty by industrializing, rather than focusing on agricultural or the production of national resources.
Currently, Pakistan, as a developing country, wants to achieve a higher standard of living for its people.
For this reason, it is pursuing policies that support privatization and deregulation of the economy. Industry plays a complex role in economic development, but these are some of its most important effects.
Increase in National Income Industrialization allows countries to make optimal use of their scarce resources. It increases the quantity and quality of goods manufactured in that company, which makes a larger contribution to gross national product GNP. Higher Standard of Living In an industrialized society, workers' labor is worth more.
In addition, because of higher productivity, individual income increases. This rise in income raises the standard of living for ordinary people.
Economic Stability A nation that depends on the production and export of raw material alone cannot achieve a rapid rate of economic growth. The restricted and fluctuating demand for agricultural products and raw materials—along with the uncertainties of nature itself—hampers economic progress and leads to an unstable economy.
Industrialization is the best way of providing economic stability. Improvement in Balance of Payments Industrialization changes the pattern of foreign trade in the country. It increases the export of manufactured goods, which are more profitable in foreign exchange.
But at the same time, processing the raw material at home curtails the import of goods, thereby helping to conserve foreign exchange. The export-orientation and import-substitution effects of industrialization help to improve the balance of payments.
In Pakistan in particular, the exports of semi-manufactured and manufactured goods resulted in favorable trends. Stimulated Progress in Other Sectors Industrialization stimulates progress in other sectors of the economy.
A development in one industry leads to the development and expansion of related industries. For instance, the construction of a transistor radio plant will develop the small-battery industry.
This is an example of backward linkage. In another case, the construction of milk processing plants adds to the production of ice cream as well. This is forward linkage. Increased Employment Opportunities Industrialization provides increased employment opportunities in small- and large-scale industries.
In an industrial economy, industry absorbs underemployed and unemployed workers from the agricultural sector, thereby increasing the income of the community.The appropriate role of government in the economy consists of six major functions of interventions in the markets economy.
Governments provide the legal and social framework, maintain competition, provide public goods and services, national defense, income and social welfare, correct for externalities, and stabilize the economy.
Preliminary versions of economic research. Did Consumers Want Less Debt? Consumer Credit Demand Versus Supply in the Wake of the Financial Crisis. The Role of Industrialization in the economic development of India!
Industrialization refers to a process of change in the technology used to produce goods and service. The Role of Government in Policy-Making Holly Regan HSM/ January 26, Terra Harris The Role of Government in Policy-Making There are three branches of government established by the U.S.
Constitution which are: the legislative branch, executive branch, and the judicial branch. Role Of The Government Economics Essay The government plays a variety of roles in business primarily to ensure that the public's interests are preserved and to control any and all market failure.
Apart from that the Government has 4 distinctive roles. Using national and internationally examples critically assess the role of government in the management of the economy and the economic development. Government plays an important role in keeping the economy stable.
Economic during extreme regression such as World War II force governments to take part in rehabilitating the economy.