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Assess the alternative economic policies that the sg government could…
Assess the alternative economic policies that the sg government could adopt to maintain a sustained rate of economic growth into the future. [15]
kW:
- assess: give advantage and disadvantage and COME TO A CONLCUSION
- alternative: means that they want a VARIETY of alternative policies
- singapore government: remb this is sg context (so you cannot say things like using MP)
- sustained rate of EG : state what this is and how it is achieved.
15m: 2 well elaborated policies + briefly touch on one more in the conclusion --> no, I think you should write 3 policies in total
intro
- define SEG
- say the SEG needs both PG and AG
- State what policies you will cover + how sg does not undertake EMP
body
EFP
-
Limitations
- size of country's multiplier
- sg has high level of savings due to the compulsory savings systems, also the fact that Asians are more thrifty
- we also have higher mpm beccause we lack natural endowments and are import reliant
- small mps means a smaller multiplier effect
- less effect EFP
EV:
- If the government spends on infrastructure etc, then it will have an impact to increase LRAS, and thus the EFP is not as ineffective due to small k
- Sg already has one of the lowest tax rates in the world to attract FDI, hence a decrease in T is not advisable, it would be better to increase G
- can also talk about crowding out effects
ERP
-
Limitations:
- loss of export competitiveness
- some industries are not dependent on imported FOP (which are now cheaper), hence they will be hit very hard
EV:
- keeping COP low is important because this will help to build investor confidence in the LR
SSP
Mem how it works
EV:
- SSP to increase LRAS is a better option rather than SSP to increase SRAS to have a sustained EG
Limitations
- a lot of the productivity solutions are prescoped, hence there is reduced ability to creatively solve productiveity solutions
- Firms might not know how to qualify for the grants
- Firms might still find it expensive to implement various schemes
EV:
- govt spending shd be prudent to ensure that economic growth is pursued at the expense of govt budget balance
- given that sg government has been rather prudent in their spending, they are unlikely to go into deficit
-
Because this is a sg context, you must
- mention that we do not use MP
- state the limitations and evaluations in terms of singapore
How to mention that we do not use MP?
- Singapore gives up control over interest rates because we have a free floating system
- hence any changes in interest rates is negated
-
When you have a policy:
- Explain how policy works
- Explain the limitation
- Explain the evaluation
NOTE: Evaluation is not the same as limitation!!!
When mentioning an eg (especially for SSP)
- Use PEEL for the example
- Give its limitations