Government Intervention Essay

The purpose of this report is to exemplify the sh atomic number 18 of political sympathies with the focus on the developing countries by answering the proposed question of wherefore do we motive brass interjection? and Why establishment intervention is necessary for the in the altogether economy? The first part of this report illustrates the of the essence(p) roles of brass in social, p arntage, and the future of country aspects. Then, Thailand was chosen as an usage of a country entering into the cutting economy, composition using the early(a) countries in eastmost Asia to illustrate the successful disposal action in transferring the countries to wise economy.1. To add social welfare for the whole country facts of biography Environment Health shell out Basic home Ideally, the government should take over the appeal of high-risk or long-term payback confinement, or plain the project that is difficult to finance as a trade-off for the content interest and be nefit of its people and, in a way, attracting private heavens to invest in the under certain region later on.2. To set up fair-games, fair competition, rules, intelligentitys and decrees, and trade come forwardments for business sector 3. To determine the future counsel of the country Provide culture and guidelines for firms to fol emit Develop strategy for the democracys sparing growth 1. Social contexts 1.1. Environmental protection shoot a line management company scum bagnot hold the idea of more(prenominal) production, more contamination any longer as it creates externalities (social cost), which in turns leave behind impose a negative impact on the companys reputation.Government mustiness enforce regulations, inspections, and control on surroundingsal aspect. This is for the social interest so that the firms idlernot take advantage from the society. Furthermore, by having regulations, not only the society exit benefit from it it also raises an issue of long -term sustainable development for the business sector to consider upon.Cons of free-enterprise Only aimed at generating profit and production, while disregarding the environment as it is considered an unnecessary cost for the company. This in turn, the environment would be destroyed (e.g. Wastefrom production, a vicious cycle, will stick out everyone if there are no regulations enforced.) Environmentalist vs. Government for developing countries, the conservationist plays a minor role in protecting the environment comparing to government intervention. Although the voices of environmentalist are significant when it comes to making changes, the government regulations are better suited in baring and solving the problem on the national direct.This is because the environmental problems corroborate to be solved simultaneously, since the effects from decaying environment can create chain-reactions affecting the whole country or even the valet (e.g. air pollution or destruction of rain forest). The environmentalist is important, as it is able to create awareness for the society, at the same time the government intervention is necessary in stage to support healthier environment for its people.1.2. Education Quality of the human resource is the driven force to advertize economic growth. Without basic education, it limits the opportunity for the entire nation to grow and protect new-fangled innovated ideas, while limiting the improvement in quality of life among population.1.3. Health care The basic need for life. There shouldnt be perceived as privilege for someone to obtain.Recent development on Thailands health care Ministry of Public Healths ply on the 30 Baht-Health for All demonstrating that satisfactory access to health care is important for the growth of recovering economy.1.4. root For a nation to inspire into the future, decentralization of development to regional and local levels rather than concentrated on specific metropolitan areas is signi ficant, as it call for involvement from everyone.2. Business contexts 2.1. Laws and Regulations (Thailand) dole out Competition Act (1999) This is to eliminate unfair trade practices, monopolization, and business collusion. If there were no regulation, monopoly can drive up prices or limits supplies while the consumers would have to bear the costsas healthy as limiting the sand of entrepreneurship. loser Act (1999) From the result of the Asian crisis, the past bankruptcy law in Thailand was not efficient enough causing the failure in the loaning agreement, lowering the foreign investors confidence. By amending the old 1940 Bankruptcy Act in 1998 and 1999, the new amendment provides a foundation for both creditor and debitor to work cooperatively and be more transparent in order to create a win-win situation, especially for the recovering companies as well as preventing future non-performing loans (NPL) for the creditors.SMEs Promotion Act (2000) Thai government encourages suppo rt for this new legislation by creating a Market for Alternative Investment (MAI) knowing to introduce fresh investment opportunities. The Minister for Finance emphasizes the significant role that MAI would play in supporting and strengthening SMEs in Thailand.2.2. Trade agreement The role of trade agreement is to encourage, assist, and advocate the export sector and to promise that domestic business would have equal access to compete in foreign markets. In addition, the trade agreement can enforce antidumping and countervailing traffic laws providing remedies for unfair trade practices.Moreover, the trade agreement can prove cooperation among fraction countries in order to avoid fierce competition (e.g. Asian gratuity Conference, G7 Conference) World Trade Organization (WTO) Before a country decides to hook up with the WTO, its government must prepare the readiness of the country whether it is law and regulation aspects or its infrastructure. This is to protect the domestic market and businesses from being exploited by foreign firms.Thailand vs. China on WTO issue Thailand officially entered into the WTO in 1995 when its laws and regulations on globalization issues were not fully developed. As a result, Thailand inevitably had to run the consequence of globalization. Compared to China, who does not fashionably join the WTO as the other near countries did, China waited and now is able tonegotiate other privileges on symmetrical agreement with foreign investors.3. Future direction determination 3.1. To provide information and guidelines for firms to follow.To be competitive in international level, the government must provide information for the public in order to assist the business sector to establish suitable strategic and decision plans for their businesses consortly.DEP (Department of Export Promotion) to assist in matching local manufacturers with overseas buyers or vice-versa by providing quick and cost- in effect(p) access to local products t hrough and through substantial information and oversea organisational facilities.BOI (Board of Investment) to assist investors by providing support services in order to rationalise risk and cost that associate with investments.3.2. Develop strategy for future economic growth SMEs (Small-Medium Enterprises) encouraging entrepreneurship through promoting business start-up spreading and stimulating more nationwide microeconomic growth.o Stimulation on more grit of ownership among the population enabling the spread in development. Because in the past, with lesser government intervention, growth and income were concentrated mainly in heavy pains or big business rather than being distributed more equally among the people.o Satisfaction of local need through the intellectual local-knowledge establish transferring into productivity in community level.Microlending being implemented in the Philippines and Thailand to assistance poor people gain access to credit so that they can finance or start up their own businesses. As a result, there would be a decrease in poverty as well as an increase entrepreneurship / small businesses.IT NECTEC (National Electronics and Computer Technology core) is Thailands main driven force for IT development. NECTEC established new strategic overpower plan on Electronic, Computer, Telecommunication and Information (ECTI) Technologies for year 2000-2004.This is because as the humankind is dominated by global businesses and industries, information and communication technologies play a tremendous role in the issues for long-term recovery and sustainability Thailand needs to qualify itself from the old economy to the New Economy in order to remain competitive. IT will gradually re location the old traditional business movement by offering real time information, reduction in feat cost and time, opening the market to many more suppliers and buyers, and no need for physical presence which consequently more productivity would be genera ted.1. Infrastructure Revamped of telecommunication monopoly by encouraging investments from private sectors.The Telephone Organization of Thailand (TOT) allow telephone-wiring licenses to TA and TT&T and granted wireless phones licenses to AIS and PCT, while the dialogue Authority of Thailand (CAT) authorized DTAC to operate in mobile phone industry. The government granted private sectors to take on the telephone-wiring project because of the urgency of the IT infrastructure expansion (from 800,000 users in 1999 to more than 1,000,000 users in 2000) in a sentiency that the private sectors are able to install the lines faster than the government sector in certain areas.Installation of fiber optic infrastructure throughout Bangkok and Thailand. amplify the telephone availability from 13 lines per 100 populations to 18 lines per 100 populations.Nation wide local call ISP access possibleness of free internet in the future Lowering cost of PC More mobile phone usage with cheaper rat e 2. IT Education Increase the number of schools connected to free internet from1,500 schools to targeted 5,000 schools.Better focus on the optimization of the reckoner usage in schools, not just computer availability.Teachers IT training, NECTEC provided pilot courses and teaching materials for Rajabhat Institute, which in turn will teach and prepare the future schoolteachers for the SchoolNet project.3. Laws and Regulations Electronic legal proceeding Bills and the Electronic speck Bills were approved by the cabinet on March 14, 2000.Electronic Transactions Act defines the legal status of electronic records as being equal to paper documents, if they are properly handled. The Act also defines the scope of legal recognition of transmission and reception processes for electric data records, time and place of occurrences of such(prenominal) transmission.Electronic Signature Act defines the electronic equivalence of cutaneous senses as a proof to identity of the signing party (i.e . authentication) and that the signatory approves the content that is being signed. The law is neutral to the choice of technology use for electronic signature. It recognizes the well-established trusted third-party system of Certification Authority (CA) and public-key infrastructure (PKI) ground on encryption technology.Intellectual Property Laws Thai government recognizes that an effective intellectual and industrial property system is vital to the development of new economy especially on the innovations and technology transfer aspects. Thus, to encourage such originalities, the government has established laws and regulations to protect and secure the exclusive rights of scientists, inventors, artists and other ingenious citizens to their intellectual property and creations, particularly when beneficial to people and its nation. When the IP laws are being violated, the offender will be inflicted with fine or custody or both. Currently, there are three major IP laws in Thailand Trademark Act (2nd modification in 2000) Patent Act (3rd revision in 1999)Copyright Act (amended in 1994) Other drafts in the line of merchandise are the Computer Crime Act, the Electronic Funds Transfer Act, and the selective information Protection Act.4. Electronic handicraft The Electronic Commerce Resource Center was set up by the cabinet resolution in declination 1998 as a unit within NECTEC where drafting of the Electronic Commerce Policy Framework is being planned.E-commerce infrastructure project has been carried out by NECTECs sister organization Internet Thailand Company, which started a neutral til now highly diverse portal site called THAI-DOT-COM (http//www.thai.com) with free commerce hosting readying to all business partners (merchants, banks, and application service providers).5. package Park Software Park is the first and unique infrastructure Thailand ever built for this new software industry. Local software developers in Thailand can enjoy sea captain sup port for international marketing. It also provides a one-stop meeting point for effectiveness customers both locally and from abroad as well as providing fast networking.In addition, world-leading companies like Intel, Informix, IBM, etc. have invested in R&D infrastructure for local software companies to use at very low cost.6. BOI incentive on IT related industry Electronic Industry This is to promote specific industry in order to respond to the development in the New Economy. Thai government offered tax-based incentives to stimulate such investment, such as Corporate income tax exemption for 8 years, regardless of location.Exemption on import duty on machinery relevant to production process.Additional privileges according to zonefurther tax and duty reduction as well as allowances for infrastructure investment.capital of Singapore o Well-connected IT infrastructure facilities such as the science-park (ranging from biotechnology to robot researches) and information superhighway which enable Singapore to become IT hub for exportable services, for instanceconsulting or engineering advises, in East Asia.o Focusing on R&D, the fastest growing activities in Singapore, since Singapore has competitive advantages on superior infrastructure and manpower capabilities to look this possibility.o Implementation of E-Government Services people saved time through complete government-related transactions (e.g. tax, registration and licensing fees). As a result, this action has saved cost for government on transaction filings, while saving cost and time for the business sector.Malaysia o Due to the aspiration of becoming a fully developed country by 2020, the Malayan government has developed a path that has been strategically mapped out to ensure that the objectives of 2020 visions are achievable.o With the focus on welcoming the information technology age phenomenon, the government has created the Multimedia Super Corridor (MSC) in which is a world-first, world class place to help companies of the world test the limits of technology and prepare themselves for the future.o excogitation of the perfect global multimedia system climate.Cyberjaya a conceptualized model intelligent urban center with multimedia industries, R&D centers, a Multimedia University and operational main office for multinational firms wishing to direct their worldwide manufacturing and trading activities using multimedia technology.Putrajaya a concept of electronic government and administration will be implemented.These two cities are the nucleus of Malaysia strategic vision for the new economy. No one knows whether it would turn out as successful as the Malaysian government has envisioned or not, but at least its government has took a tremendous step by investing into a project that certainly the whole country will realize the impact of new economy and information technology and, hopefully, benefit from it.Transforming Thailand to New Economy needs a very strong foundatio n and cooperation in every level starting from redesigning infrastructure, IT education, HR development, and IT laws and regulations. These four factors needed to be organized by the government, not only because the whole country needs to be convolute in this transforming stage, but the government needs to also provide authority for the business sector on security issues as well as providing a sense of borderless marketing condition for the company to excel in the global competition.In addition, the government involvement is very crucial this is to prevent the concentration of IT development in certain sectors or business field as if would have done by the private sector. And ensuring that the country would look for into the New Economy era together, and that there should be no distinction in IT development in which, as a result, the country and everyone knotty will mutually benefit from this New Economy endeavor.