BHO2434 Consumer Behaviour

Countries that allow consumers to control resources have been prosperous economically. This is because of efficient allocation of resources, innovation and value creation. This constitutes to the phenomenon of economic freedom which stresses the right of every human to control and direct their resources. The modern world successful and tremendous growing economies such as Singapore are not geographically large or countries endowed with minerals and natural resources. However, nations such as Singapore and New Zealand have achieved tremendous growth by enhancing their economic dynamism. Economic dynamism can be successfully handled by the economy by governments adopting economic policies that empower the business freedom of all the individuals[1]. Economic policies will act as incentive to the entrepreneurs thus translating to an economy that is open for economic activity eventually boosting the amount of cash flow in the economy. Translating to increase in per capita income. In comparison to the repressed economies it has been noted that countries that implemented economic freedom policies have registered low poverty levels. This has been attributed to the amount of market opportunities on the disposal in these free market countries.

Decades ago the developed western countries believed on the perspective that they could hasten the growth of developing countries by extending financial aid to this countries. They mainly looked at the government has the sole key to economic prosperity. However, to their dismay most of this financial aid were misappropriated and invested in unproductive, dormant projects. Most of the developed countries have cut the pipeline of funds flowing to developing economies in form of financial aid by encouraging their governments to adopt and implement economic freedom polices[2]. However, to sustain economic freedom countries in subject should encourage their citizens to be more enterprising and work on boosting their financial inclusiveness[3]. Actually a market controlled by the private sector is able to avail more resources in the market. When the Pakistan economy opened up for the private sector Pakistan noted a tremendous growth in its technological and communication sector due to the increase in phone connections at affordable prices[4]. Actually this depicts the results of economic freedom driven market. Moreover, apart from the materialistic and monetary benefits of economic growth it also leads to other social benefits such as increase in literacy levels.

Bibliography

Bruce Scott. How Do Economies Grow? Harvard Business Review. (2018). https://hbr.org/1997/05/how-do-economies-grow

Heritage Foundation. Societies Thrive as Economic Freedom Grows.2018 Index Of Economic Freedom (2018). https://www.heritage.org/index/book/chapter-2

Muhammad Ayub Mehar. Common Sense Economics, What Everyone Should Know about Economic Prosperity (Pakistani Edition). Munich Personal RePEc Archive, 2018. https://mpra.ub.uni-muenchen.de/44737/1/MPRA_paper_44737.pdf

World Bank. Financial Inclusion: Financial inclusion is a key enabler to reducing poverty and boosting prosperity. Washington D.C. (2018). https://www.worldbank.org/en/topic/financialinclusion/overview

[1] Heritage foundation. Societies Thrive as Economic Freedom Grows.2018 index of economic freedom (2018). https://www.heritage.org/index/book/chapter-2

[2] Bruce Scott. How Do Economies Grow? Harvard business review, (2018). https://hbr.org/1997/05/how-do-economies-grow

[3] World Bank. Financial Inclusion: Financial inclusion is a key enabler to reducing poverty and boosting prosperity. Washington D.C.(2018). https://www.worldbank.org/en/topic/financialinclusion/overview

[4] Muhammad Ayub Mehar. Common Sense Economics, What Everyone Should Know about Economic Prosperity (Pakistani Edition). Munich Personal RePEc Archive, 2018. https://mpra.ub.uni-muenchen.de/44737/1/MPRA_paper_44737.pdf