Business Environment 6_social welfare industrial policy

The lecture provides definitions, types and examples of social welfare as well as what industrial policy brings . It also gives an overview of economic growth through the definition, measures, differentiation of GDP and GNP.

SOCIAL WELFARE POLICY

SOCIAL WELFARE POLICY

Definition of WELFARE

• consists of actions or procedures — especially on the

part of governments and institutions — striving to

promote the basic well-being of individuals in need such as:

▫ strive to improve the financial situation of people in need

▫ strive to improve their employment chances and many other aspects of their lives including sometimes their

mental health

SOCIAL WELFARE POLICY

• Seeks to protect and directly improve people’s standard of living.

• The policies that government uses for welfare and social protection.

• Emphasizes individual responsibility and biases the role of the state towards promotion of

equality & the provision of services targeted on specific lower income or disadvantaged groups.

SOCIAL WELFARE POLICY

SOCIAL WELFARE POLICY

Two (2) Types of Benefits

1 Universality

▫ benefits and services available to everyone as a

right (old people/children)

2 Selectivity

▫ benefits and services are reserved for people in

need.

The social security system provides a safety net for those

on LOW INCOMES

It has the effect of redressing some of the inequalities in society as a whole.

SOCIAL WELFARE POLICY

Two (2) Types of Social Security

SOCIAL WELFARE POLICY

Social Security

2 Non-contributory benefits

▫ Benefits available regardless of whether or not the

claimant has made contributions.

▫ Child benefit & or Guardian’s allowance

▫ Attendance allowance or Disability living allowance

▫ Invalid care allowance

▫ Industrial injuries disablement benefit

VIET NAM

http://www.unicef.org/vietnam/activities.html

• Health and Nutrition

Despite the impressive results in health and nutrition, Viet Nam

faces many challenges, including disparity in access to health care services, high rate of child malnutrition and increasing number of pregnant women and children infected by HIV/AIDS

• Childhood injury prevention

With nearly 27,000 children dying each year in Viet Nam or about 74 children every day due to injuries (VMIS – 2001), an urgent response

is required. 

• Water, environment and sanitation

Only 18 per cent of these existing latrines are hygienic by national standards, indicating the slow progress made thus far, and also

stressing the need for accelerated efforts for achieving the related Viet Nam Development Goal and MDG targets.

• Basic Education and Gender Equality

Children living in remote or disadvantaged areas, ethnic minority children, especially girls, children affected by HIV and AIDS, and

children with disabilities are those who often missed out education opportunities.

• Provincial child friendly programme

UNICEF plans to support the government to influence sub-national Socio-Economic Development Plans (SEDPs) in order to ensure that they address women and children’s issues.

• Avian influenza (AI)

UNICEF, as part of the Joint Government - UN Programme to Fight

Avian Influenza (AI), is the coordinating agency for the avian influenza public awareness and behavior change communication campaign

• Planning and Social Policy

Viet Nam is one of the fastest developing countries in the world

Making sure that Viet Nam’s progress benefits all children presents a serious challenge to the Government and its development partners.

More than 2.6 million children in Viet Nam are reported to

be in need

of special protection.

INDUSTRIAL POLICY

INDUSTRIAL POLICY

Allows government:

• To take an active role to support investment

• To encourage a faster rate of economic growth in industry

• To stop the decline of the manufacturing sector

INDUSTRIAL POLICY

1 Government industrial policy might either hamper or promote

the growth of new industries

 Restraining growth

 Encouraging an emerging industry

2 Government policy might make it difficult for new firms to gain

entry into an industry or market by:

 Placing restriction on foreign firms

 Putting tariffs on the goods of overseas suppliers

 Subsidising domestic firms that are already in the industry

 Imposing product standards requiring a particular level of

safety

INDUSTRIAL POLICY

3 Government may also seek to encourage or discourage new

products

 New products esp in the pharmaceuticals industries

must undergo stringent testing & obtain government approval before they can be marketed

 The food industry is subject to strict controls on products

& manufacturing processes

4 Government can influence the degree and nature of

competition within an industry

 The government can bring considerable pressure to bear

on competition within an industry

INDUSTRIAL POLICY

3 Government policy can affect the position of products in one

industry with respect to the position of substitute products

4 Government can put restrictions on global competition, it can

encourage it too, by removing the restrictions and

regulations

INDUSTRIAL COMPETITIVENESS POLICY

• Investment in physical and human capital

• Reduction in non-wage employment costs

• Support for small and medium sized enterprise

• Promotion of R & D and innovation

• Improvements to infrastructure

• Reinforcing the laws on copyright and patents

INDUSTRIAL COMPETITIVENESS POLICY

INITIATIVES:

• Investment in physical and human capital

• Reduction in non-wage employment costs

• Support for small and medium sized enterprise

• Promotion of R & D and innovation

• Improvements to infrastructure

• Reinforcing the laws on copyright and patents

• The process of converting or "selling off" government-owned

assets, properties, or production activities to private

ownership After several decades of increasing government control over productive activities, privatization came into

vogue in the 1980s, along with business deregulation and an overall movement toward greater use of markets

SOME IMPACT OF PRIVATISATION:

1.Raise new revenue for the state

2.Promote economic efficiency

3.Reduce government interference in the economy

4.Promote wider share-ownership

5.Provide the opportunity to introduce competition

6.Develop the nation’s capital market

Privatisation Process

Flow (An Example)

ECONOMIC GROWTH

ECONOMIC GROWTH

• Economic growth is measured by increases in any of the

following:

a.Total expenditure in the economy

b.Total income for individuals and companies in the economy

c.Total output in the economy

ECONOMIC GROWTH

• Measures

▫ Gross domestic product (GDP)

GDP = consumption + investment + (government spending) + (exports − imports)

▫ Gross national product (GNP)

GNP = GDP + NR (Net income from assets abroad (Net Income Receipts))

▫ Total national expenditure

E = C + I + G + (X - M) where

▫ E is total national expenditure

▫ C is total domestic consumption

▫ I is tout industrial investment

▫ 0 is total government spending

▫ X is total exports

▫ M is total imports

of those who produce them.

GNP is the value of what's produced by a country's

residents, no matter where they live

It is the total market value of goods and services produced

by the residents of a country, even if they’re living abroad

USEFUL Sites for Task 2B

I hope you’ve been entertained with the videos and most

importantly, I hope you have

learned something.

Thank you for listening.