Question

What is meant by the politics of economic growth?

What are clusters and how effective are they in promoting economic development?

Answer 1

Economic growth depends upon the political process and related decision making power to various authorities. This is the basis of politics of economic growth. In today's scenario, The activities of various countries and their political leaders can be said to play the politics of economic growth. Recently, the trade war between USA and China can be said as the same. Many times , regional and international trade barriers are the result of the political conversation and distances among the nations of the world.

Clusters are developed to take economic advantage of industry having similar types of firms in production, manufacturing and services activities. It will be utilized to give a momentum to rapid growth and development within a time frame . For example, California's technological cluster, Silicon valley in Francisco and Hollywood movie in Los Angeles.

These clusters help in bringing innovation, manpower and many other contemporary policies support to promote cluster development and creating a sustainable business ecosystem. Government offers a lot of confidence to these firms having specialized and peripheral activities. Tax holiday is one of such initiatives.