The necessities of an emerging market and economic environment

Essay by issiaka21 May 2007

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The main purpose of this correspondence is to acquaint you with some ideas which when implemented will help to achieve optimum transformation of the nation’s domestic market. It is my belief that in order to achieve an effective transition into the emerging markets, these rules should be implemented. Firstly, there is a need for to minimize costs and maximize benefits, which will be realized through market capitalization. Secondly, industries should be deregulated where the government does not set binding rules in the market. Thirdly, the privatization of state enterprises refers to enterprises that are not publicly owned by the state or national government. Finally, there is a need for the globalization of international market which gives the nation greater advantage in its economies of scale.

Presently, our country has progressed from a closed to an open market economy and has gotten more market-oriented. This transition or the transitional move in addition to the fact that our nation has a low-to-middle per capita income has positioned us in the emerging markets category of the world economy.

As an emerging economy, the country should now embark on an economic reform program that will lead to a stronger and more responsible performance level, as well as transparency and efficiency in the capital market. Besides implementing reforms, our emerging economy should also receive additional aid and guidance from large donor countries and world organizations such as the World Bank and International Monetary Fund.

In market capitalization, production is privately owned and operated for a profit. This profit creates an incentive for workers to perform better, more efficiently and earn more. Similarly, the owner also experiences a mutual profit. In this sequence there is a direct result for employees and employers. As you can see market capitalization introduces more flexibility for employers and more job...