Government Intervention Essay Example for Free

governance Intervention EssayThe purpose of this report is to exemplify the role of governance with the point on the ontogenesis countries by answering the proposed question of Why do we need government intervention? and Why government intervention is necessary for the radical economy? The first part of this report illustrates the essential roles of government in social, duty, and the future of countrified aspects. Then, siamese connectionland was chosen as an example of a rural area entering into the recent economy, go using the other countries in East Asia to illustrate the successful government natural action in transferring the countries to new economy. 1. To let social welf be for the whole country Education Environment Health foreboding staple fiber foot Ideally, the government should bear the cost of high-risk or long-term payback project, or dismantle the project that is difficult to finance as a trade-off for the national interest and benefit of its pot a nd, in a way, attracting esoteric sector to invest in the underdeveloped region later on.2. To round up fair-games, fair competition, rules, laws and regulations, and trade savvys for railway line sector 3. To determine the future direction of the country set aside information and guidelines for firms to follow Develop strategy for the nations scotch growth 1. Social contexts 1.1. Environmental harborion bollix management company can non h over-the-hill the idea of more(prenominal) production, more pollution any longer as it creates externalities (social cost), which in turns pass on impose a negative push on the companys reputation.Government must administer regulations, inspections, and control on environmental aspect. This is for the social interest so that the firms cannot take advantage from the society. Furthermore, by having regulations, not only the society will benefit from it it also raises an resultant role of long-term sustain able maturation for the busine ss sector to consider upon.Cons of free-enterprise Only aimed at generating profit and production, plot of ground 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 hurt e realone if there are no regulations en pull upd.) Environmentalist vs. Government for developing countries, the environmentalist plays a excusable role in protecting the environment comparing to government intervention. Although the voices of environmentalist are significant when it comes to devising changes, the government regulations are better suited in preventing and solving the problem on the national level.This is because the environmental problems leave to be solved simultaneously, since the effects from decaying environment can create chain-reactions affecting the whole country or even the humankind (e.g. air pollution or destruction of rain forest). The environmentali st is meaning(a), as it is able to create awareness for the society, at the same time the government intervention is necessary in articulate to support healthier environment for its people.1.2. Education Quality of the human resource is the findn force to push economic growth. Without basic education, it limits the opportunity for the entire nation to grow and foster new innovated ideas, patch close 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 campaign on the 30 Baht-Health for All demonstrating that equal entrance fee to health care is important for the growth of recovering economy.1.4. Infrastructure For a nation to propel into the future, decentralization of development to regional and topical anesthetic levels rather than concentrated on specific metropolitan areas is significant, as it need s involvement from everyone.2. Business contexts 2.1. Laws and Regulations (Thailand) batch 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 intimately as limiting the sense of entrepreneurship.Bankruptcy 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 debtor to work hand and glove and be more transparent in piece 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 support for this new lawmaking by creating a Market for Alternative Investment (MAI) designed to introduce fresh investment opportunities. The rector 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 ensure that domestic business would have equal access to compete in foreign markets. In addition, the trade agreement can hold antidumping and countervailing duty laws providing remedies for unfair trade practices.Moreover, the trade agreement can promote cooperation among member countries in order to avoid fierce competition (e.g. Asian Summit Conference, G7 Conference) World Trade Organization (WTO) Before a country decides to join 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 organism explo ited 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 hold up the consequence of globalization. Compared to China, who does not fashionably join the WTO as the other neighboring countries did, China waited and now is able tonegotiate other privileges on bilateral agreement with foreign investors.3. Future direction determination 3.1. To provide information and guidelines for firms to follow.To be competitive in multinational level, the government must provide information for the human race in order to assist the business sector to establish suitable strategic and decision plans for their businesses accordingly.DEP (Department of merchandise Promotion) to assist in matching local manufacturers with overseas buyers or vice-versa by providing quick and cost-effective access to local products by substantial informa tion and oversea organizational facilities.BOI (Board of Investment) to assist investors by providing support work in order to reduce 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 sense 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 industry or high-risk business rather than being distributed more evenly among the people.o Satisfaction of local need through the intellectual local-knowledge based transferring into productivity in community level.Microlending being implemented in the Philippines and Thailand to help forgetful people gain access to credit so that they can finance or start up their own businesses. As a resul t, there would be a decrease in poverty as well as an increase entrepreneurship / small businesses.IT NECTEC (National electronics and Computer Technology Center) is Thailands main driven force for IT development. NECTEC formal new strategic master plan on electronic, Computer, Telecommunication and Information (ECTI) Technologies for year 2000-2004.This is because as the world 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 transform itself from the old economy to the New preservation in order to remain competitive. IT will gradually replace the old traditional business transaction by fling real time information, reduction in transaction cost and time, opening the market to many more suppliers and buyers, and no need for physical presence which consequently more productivity would be generated.1. Infrastructure Revamped of telecommunicatio n monopoly by encouraging investments from private sectors.The Tele telephony Organization of Thailand (TOT) granted telephone-wiring licenses to TA and TTT and granted wireless phones licenses to AIS and PCT, while the Communication 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 sense 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.Increase the telephone approachability from 13 lines per 100 populations to 18 lines per 100 populations.Nation wide local call ISP access speculation of free internet in the future Lowering cost of PC More mobile phone usage with cheaper rate 2. IT Education Increase the number of sc hools connected to free internet from1,500 schools to targeted 5,000 schools.Better way on the optimization of the computer usage in schools, not just computer availability.Teachers IT training, NECTEC provided pilot courses and teaching method materials for Rajabhat Institute, which in turn will teach and prepare the future schoolteachers for the SchoolNet project.3. Laws and Regulations Electronic Transactions Bills and the Electronic skin senses Bills were approved by the cabinet on March 14, 2000.Electronic Transactions Act defines the legal stance of electronic records as being equal to paper documents, if they are properly handled. The Act also defines the stretch of legal recognition of transmission and reception processes for electric data records, time and place of occurrences of such transmission.Electronic Signature Act defines the electronic equivalence of signature as a proof to identity of the sign language party (i.e. authentication) and that the signer approves the content that is being signed. The law is neutral to the choice of technology used for electronic signature. It recognizes the well-established trusted third-party system of Certification Authority (CA) and public-key infrastructure (PKI) based on encryption technology.Intellectual position 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 gifted 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 imprisonment or both. Currently, there are three major IP laws in Thailand Trademark Act (2nd revision in 2000) visible Act (3rd revision in 1999)Copyright Act (amended in 1994) Other drafts in the pipeline are the Computer Crime Act, the Electronic Funds Transfer Act, and the Data Protection Act.4. Electronic Commerce 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 still highly diverse portal site called THAI-DOT-COM (http//www.thai.com) with free commerce hosting provision to all business partners (merchants, banks, and covering service providers).5. Software Park Software Park is the first and unique infrastructure Thailand ever reinforced for this new package industry. Local software developers in Thailand can enjoy professional support for international marketing. It also provides a one-stop meeting point for pote ntial customers both locally and from abroad as well as providing high-speed networking.In addition, world-leading companies like Intel, Informix, IBM, etc. have invested in RD infrastructure for local software companies to use at very low cost.6. BOI incentive on IT related industry Electronic effort This is to promote specific industry in order to respond to the development in the New Economy. Thai government offered revenue enhancement-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.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 instanceco nsulting or engineering advises, in East Asia.o Focusing on RD, the fastest growing activities in Singapore, since Singapore has competitive advantages on superior infrastructure and manpower capabilities to explore this possibility.o Implementation of E-Government go 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 Malaysian 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 them selves for the future.o intromission of the perfect global multimedia climate.Cyberjaya a conceptualized model intelligent city with multimedia industries, RD centers, a Multimedia University and operational headquarters 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 meter 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 foundation and cooperation in every level starting from redesigning infrastructure, IT education, HR develop ment, and IT laws and regulations. These four factors needed to be organized by the government, not only because the whole country needs to be involved in this transforming stage, but the government needs to also provide assurance for the business sector on credentials 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 fields as if would have done by the private sector. And ensuring that the country would explore into the New Economy era together, and that there should be no discrimination in IT development in which, as a result, the country and everyone involved will mutually benefit from this New Economy endeavor.