Compare And Contrast Growth-Mediated Economy And Support-Led Model Of Economic Development. How Do Each Of These Models Affect Population Health?
Prepare a 1,000 to 1,500-word paper to compare and contrast growth-mediated economy and support-led model of economic development. How do each of these models affect population health?
Growth-Mediated Economy And Support-Led Model Of Economic Development
An improvement in the living standards of people primarily relies on economic growth as its critical catalyst considering its effect on poverty and unemployment rates. Extensive research has asserted that sustainable economic growth plays a huge role in how a country progresses especially in elements such as education, health and infrastructure. To this effect, it is vital that the right strategy is selected to attain sustainable economic growth which has been evident in countries such as China and Mozambique. Two strategies, growth-mediated economy model and the support-led model of economic development are two approaches that could be used to assess economic development and determine how it can be developed and sustained (Dev, 2016). This essay seeks to compare and contrast the two models and their effect on population health.
The growth mediated economy consists of models that put minimal emphasis on market laws and regulations to ensure that the market players conduct their business with minimal intervention. The mode takes up the broad-based approach and rapid economic development that will facilitate the access to public resources that will have a positive impact on living standards (Chau & Kanbur, 2018). The economic growth attained within a particular duration determines how successful these models have been, factors such as the distribution of economic activities including infrastructure and employment rates are considered during the measurement. The main notion held in this approach is that the overall economic growth is attained via a free market with the benefits being shared across the entire population. To this effect, the government plays the fundamental role of facilitating business development and skill development which includes providing subsidies. The subsidies are used in spearheading production, being inventive and innovative while also increasing skills. China is one of the countries using the growth mediated economy model that has actually facilitated the tremendous growth the country has attained.
The growth-mediated model will hence encompass policies that will generate employment opportunities which is part of the wider policy thrust and structural changes to happen to the economy. These policies include the acceleration of the growth rate of GDP while emphasizing on sectors that will ensure spreading income to the lower labor force levels. The second policy is the pursuit of proper sectoral policies in individual sectors which are specifically fundamental in generating employment. Anoith policy is the implementation of focusses special programmes that create additional employment that will enhance the generation from existing activities that focus on vulnerable groups. It is evident that for this model, the creation of employment opportunities is a topmost objective considering it increases the ability of the economy to impact the population’s overall health positively.
Conversely, the support-led growth model is focussed on the elevation of customers from being the centers of cost towards customer support channels. In contrast to the growth mediated model, the support-led growth model works within the restricted market environment (Dev, 2016). The approach will entail making heavy investments in social issues such as education and healthcare while making tax increments and enforcing strict laws and regulations on businesses. The focus is increasing employment opportunities and reducing migration rates among the educated preferred by the developed countries whose aim is maintaining the high life expectancy levels and low infant mortality rates. It is known that the countries with sustained economic growth rates have proper healthcare systems that are fundamental in improving their citizens’ life expectancy levels. Economic growth is hence the reason that countries such as South Korea put their focus on basic education, basic healthcare systems and higher participation rates among its citizens.
The support-led approach is focussed on the reduction of inequalities among its people and between the existing social classes within the country. The aim is to weaken work patterns and increase the informal economy through interventions for improving local needs and developing strategies that will enhance employment (Chau & Kanbur, 2018). From this approach, the government will promote local development as a means of raising living standards for this local population. This is attainable through an increase in the comparative advantages to people within the country levels. It is evident that decentralization is a critical aspect of the approach considering the aim of providing opportunities to the individuals within these local economies. Ultimately, the support-led approach will have created an enabling environment where SMEs grow considering they are protected from large corporations. This is because the focus is on enhancing entrepreneurship through its formalization, training the entrepreneurs, ensuring their engagement with professional association, upgrading in value chains and developing their leadership and their entire businesses.
It is important to note that the support-led model commented on having its people obtain social security coverage especially for those working at local levels and informal economies. Therefore, the government supports the expansion of its social schemens and ensures that strategies that will manage the risks affiliated to accessing insurance are developed. The organizations that provide social security to the citizens are also strengthened. Climate is also another area that the model also focuses on considering that climate change is one of the contemporary issues in the modern world. According to McCartney et al. (2019), considering that the model works within the restricted market environment, it has a significant capability to enforce the required laws and regulations that foster environmental protection while deterring any form of degradation. The businesses participating in different industries makes them an integral part of this model and hence they are pushed to fostering the right things such as ensuring their operations comply with environmental sustainability.
Conclusively, the growth mediated and support-led models are evidently focussed on economic development despite the different practices they incorporate. Notably, one cannot downplay the benefits they each bring to the regions in which they are implemented. Therefore, that is why the Chinese government seeking to apply the growth-mediated model has seen its citizens being allowed to venture into various businesses and be innovative with minimal government interventions. Therefore, it is evident that the government an those alike become facilitators of economic growth happening in their communities considering that the people get the opportunity to exploit public resources, this encompass improved infrastructure, healthcare services and the education systems which arte economic development pillars and also determinants of the population health, the support-led model also provides its benefits as it operated in the restricted market economy. In this approach, the emphasis is on improving living standards by putting emphasis on the small and medium businesses while the government intervenes through regulations. To this effect,it is evident that the two models are working towards facilitating economic growth which are beneficial to the population’s overall health.
References
Chau, N. H., & Kanbur, R. (2018). The Past, Present And Future Of Economic Development.
Dev, S. M. (2016). Growth-Mediated and Support-Led Social Security in Unorganized Sector in India. The Indian Journal of Labor Economics, 45(2), 219.
McCartney, G., Hearty, W., Arnot, J., Popham, F., Cumbers, A., & McMaster, R. (2019). Impact of political economy on population health: a systematic review of reviews. American journal of public health, 109(6), e1-e12.
