Improving Institutional and industrial Regime

8/12/2019 Improving Institutional and industrial Regime

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Improving the Economic & Institutional Regime.

Information of Economy.

Presented to Sir. Qazi Mohd. Salman

Made by: Faireh Ahmed (56514)


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Presentation Outline

Regulation.

Deregulation in Mexico.

Finance.

Creating a Venture Capital Industry: The Network of

Overseas Chinese.Reference

Analysis


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RegulationDefinition:

An official rule or law that says

how something should be done.

The tendency to over regulate things is higher in

developing economies.

Successful practices discovered by policy makers areoften tailored and borrowed by imitators.

In successful reforms actions must be focused in the

areas that appear likely to have the greatest systemiceffects.


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Successful Mexico DeregulationThe czar had unequivocal presidential support; this signaled to

bureaucrats and citizens alike the need to comply with his decisions.

The czars decisions could be overruled only at the highest level of

government.

Tough penalties were imposed on officials who failed to implement the

czars rulings.

The czar operated under a strict time limit, which ensured quick and

visible results.

Continued


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The czars staff understood the economic consequences of regulations,the complicated interactions within the regulatory field, and their

administrative requirements.

The czar won credibility with officials and the public by giving a fairhearing to both the powerless and the influential and by establishing a

record of impartiality.


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FinanceIntroduction to Micro Finance banking to initiate small entrepreneurialstart-ups.

Introduction to Venture Capitalism.

Micro-finance relies on the social responsibility of borrowers belonging

to a narrow group to ensure repayment.Barriers to reforms of system.

Conservative mindset.

Competition with established traditional system.

Implementation of Financial liberalization in 90s and its failure.


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Creating a Venture Capital Industry: The Network of Overseas ChineseTaiwanese government initiated to promote Venture Capitalism in 1980s

with neither blueprint nor capability.

Role of Silicon Valley as a role model.

Majority criticism as the idea foreign to traditional Taiwanese practice.

H&Q Asia Pacific and Walden International Investment Group in the mid-

1980s.

Creation of domestic VC funds.

Investment of conservative families in VC funds emergence of a modern VC

industry in a society dominated by conservative and risk-averse business

groups.


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Reference


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The role of an effective regulatory regime in promoting

economic growth and development has generated considerable

interest among researchers and practitioners in recent years. In

particular, building effective regulatory structures in developingcountries is not simply an issue of the technical design of the

most appropriate regulatory instruments, it is also concerned

with the quality of supporting regulatory institutions and

capacity.

THE IMPACT OF REGULATION ON ECONOMIC GROWTH IN

DEVELOPING COUNTRIES: A CROSS-COUNTRY ANALYSIS .

Research done by three institutions .

University of Bradford, University of Machester, Cranfield University


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Analysis


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Regulation or deregulation, both can be preferred with what are the

dynamics of any sector to contribute in the economical growth of anynation.

Adapting successful model to tailor and implement in self conditions.

Establishing the concept of Venture Capitalism to promote small start-

ups, in comparison to obsolete employment practices.

Motivating innovation rather pulling the population to join thetraditional band wagon.


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Thank You

Improving Institutional and industrial Regime

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