Question

5. What are the engines of economic development of nations? What can gov ernments do to power these engines?

Answer 1

Economic development is related to increase in output in the economy with improvement in social and political welfare of people. Therefore it is necessary for development of economy.

Some engines of economic development are :-

1. Growth of infrastructure
2. Tax rebate
3. Employement generation
4. Upgrading technology

Government can take various steps for development of these engines.

- For infrastructure government can plan various strategies and provide contracts to the private sector which will improve the infrastucture of the country.

- It can also provide rebates on developing industries and small scale industries to uplift their morale.

- Through these various steps there will be employment generation and thus leading to social welfare.

- It should also upgrade technology time to time as to increase the output with good quality.