Introduction
There is a saying that you cannot make money from thin air! It refers to the fact that people must work to earn money. It also implies a limit on how much people will work in an economic system. As such, no matter what a financial system might be like – capitalist, socialist, or mixed economy – there are limits on how many jobs it can produce. The reality is that in most economies, the private sector has more jobs than the public sector does. It is an achievement of the private sector that it creates jobs, and it is a consequence of the public sector that it fails to. So, if an economy is to create more jobs, it will have to do so through more investment in the private sector (Peleg Mizrachi & Tal, 2022). It will also have to do so in a way that does not discourage private-sector investment. The public sector is unlikely to solve the problem of creating sustainable jobs.
The main task of all governments is to find the right balance between private and public sector investment. However, there is no one economic theory that can tell governments how to achieve this balance. It depends on what outcomes the government’s citizens, who form the majority, seek from their government and its policies. So, no one government policy can create sustainable jobs. Only a combination of approaches can do that. This means that to create sustainable employment, governments must adapt to the needs of their citizens and devise policies and programs that promote a balance between the private and public sectors (Morris & Staritz, 2019). Most importantly, it must strive to make the private sector more competitive, productive, and efficient.
Through the growth of the private sector and public-private partnerships (PPPs), it is possible to create stable employment. PPPs are partnerships between the private sector, on the one hand, and governments or state-owned enterprises (SOEs), on the other. PPPs promote economic development through genuine private-sector participation in an economic system (Narula & Zhan, 2019). They enhance productivity and efficiency by integrating services with public needs. They provide an efficient way to address infrastructure and human resource gaps. Most importantly, they create jobs for their local communities.
As an economic system, capitalism is based on growth. To achieve this growth, some economists advocate that the government should reduce its economic role and let the private sector take over. They say that when the government steps back, it paves the way for investment in businesses that create jobs, enhance productivity and efficiency, and stimulate growth. In theory, at least, there is logic to this argument. However, it cannot be applied in all countries (Morris & Staritz, 2019). In a free market system, a free economy is supposed to be driven by its citizens and consumers, who buy the goods and services produced by their private-sector competitors. This is how most markets function in developed countries today. However, in some countries, the state may interfere with private–sector demands through taxation policy and subsidies. In some countries – like China – the state owns large parts of the economy and tries to control demand through price controls.
PPP Direct Private sector empowerment Increasing Private Sector participation in an economic system.
The state and its citizens must find the right balance between the private and public sectors. This requires that governments devise policies that encourage a balance in favor of private-sector growth. In addition, it requires nurturing an enabling environment for businesses to become more productive, efficient, and competitive. Direct private-sector empowerment is critical to achieving this end (Narula & Zhan, 2019). It involves the transfer of ownership of assets from the state or SOEs to the citizens in local communities where projects are located. The assets may include land, physical infrastructure, and enterprise-based companies. In the process, state-owned enterprises or local communities develop skills and knowledge to manage their affairs.
Public Private Partnership (PPP) is a set of tools and techniques the private sector uses to engage with the public sector. PPPs are partnerships between governments and the private sector. They are voluntary arrangements between governments and businesses encouraging the private sector’s participation in public works, services, and infrastructure projects. They promote economic development through genuine private-sector participation in an economic system (Sabirov et al., 2021). Most importantly, they enhance productivity and efficiency. They create jobs for their local communities. PPPs have been used in many infrastructure projects, including transport and energy systems, water supply and sanitation, health care, and education.
Implementing PPPs on a large scale is now possible – involving diverse projects covering the entire national economy. This is what researchers call the “scale-up” of PPPs, meaning the application of PPPs on a large scale to tackle pub Researchers call this-sector infrastructure priorities. In the process, countries can create jobs, stimulate growth and energize their private sectors. The process of scale-up requires that there is a change in public attitude towards the private sector. It requires that the public sector is prepared to let go of its ownership of assets and concentrate on its responsibilities for policymaking, law enforcement, and justice (Morris & Staritz, 2019). A public servant should be interested in upholding the rule of law and supporting institutions that promote good governance rather than being preoccupied with asset ownership issues.
Encourage entrepreneurship and aid small and medium-sized businesses (SMEs) through initiatives that enhance capacity and provide access to capital.
SMEs are critical in the creation of new jobs. They employ many people and play a critical role in developing local communities. However, they face many difficulties because of a lack of access to credit, poor infrastructure, tax barriers, and policy uncertainty. These factors inhibit their growth and competitiveness (Zhang et al., 2021). To overcome these difficulties, governments should create investment incentives to attract capital from within the country and abroad. This should include tax holidays, grants, or tax credits that are offered to investors in SMEs. Local communities should also be empowered to support their businesses (Morris & Staritz, 2019). They could do this by providing them with grants, subsidizing their utility bills, and training people in business management. This process involves transferring ownership of assets from the state or SOEs to citizens in local communities where projects are located. The assets may include land, physical infrastructure, and enterprise-based companies. This process may be carried out in conjunction with a PPP. In the process, state-owned enterprises or local communities develop skills and knowledge to manage their affairs.
Khasru & Siracusa 2020 discussed encouraging entrepreneurship and aiding small and medium-sized businesses (SMEs) through initiatives that enhance capacity and provide access to capital. Balancing private and public sector activities is complex and involves a delicate balance. However, it can lead to sustainable growth with equity when it is done successfully. It can create jobs for the many millions of people who are unemployed today. These people will have an opportunity to contribute to the economic growth of their countries (Sabirov et al., 2021). They will be able to provide for their families and participate in the new economic realities of the 21st century. They discussed the importance of providing incentives to the private sector to support the development of industries and sectors critical to sustainable economic growth. The authors focused on applying PPPs as a tool for promoting economic growth.
In many countries, there needs to be a sound business environment and high levels of unemployment. Competition from the illegal sector and corruption also puts the economy at risk. The government must focus on creating an environment where businesses can be regulated, taxes collected effectively, and conflicts resolved through law enforcement. The government should also focus on investing in the public sector. This will enable the country to overcome bottlenecks in infrastructure development (Zhang et al., 2021). The government should also focus on developing human resources. This will enable it to develop its human capital, build partnerships with the private sector and attract investment. In this way, the government can facilitate private sector growth and reduce unemployment.
For the government to improve business opportunities in its country, businesses must have faith in their capacity to succeed. They need to feel confident that they will be able to remain in the country and see value in committing capital to the local economy. The government should develop sound economic policies that create public-private partnerships, stimulate economic growth and provide a sound business environment. In its effort to promote private investment, there must be a deliberate policy shift from protecting SOEs to creating opportunities for the private sector (Peleg Mizrachi & Tal, 2022). This may require more excellent competition policy and regulation of financial services.
The government should also focus on local communities to promote economic development. Policymakers should focus on transferring ownership of assets from the state to the local communities where projects are located. In this process, state-owned enterprises and local communities should be empowered to manage their affairs. The public sector has a role in maintaining law and order, providing infrastructure, ensuring sound business policies, and creating jobs (Chikaza & Simatele, 2021). Achieving these objectives requires a delicate balance between the public and private sectors. Governments must develop partnerships with the private sector to create new economic realities.
Nguyen & Garvin 2019 discussed contract management strategies in PPPs. Contract management strategies play a vital role in the success of a project. They provide information on stakeholders’ preferences, identify obstacles and address challenges that may arise, and help identify opportunities for improvement. These activities are essential for a successful PPP. Project managers should adopt policies that guarantee transparency and accountability in PPPs (Narula & Zhan, 2019). This will enable them to build trust with the public sector and private investors. The investment is not an open-ended commitment; it must include tangible benefits to shareholders. This will ensure that investors develop an understanding of the risks involved and that they are keen to maintain accountability. The private sector has a role in increasing economic development in many countries. It is essential that the government recognizes this and supports private investments (Acharya et al., 2022). The government must focus on developing partnerships with the private sector to create new economic realities for its citizens. For cities to survive, income needs to be generated and reinvested locally. This requires a different approach from what is practiced in traditionally planned cities today.
Nguyen & Garvin 2019 on that issue, the notion of the global city has changed. Global cities have become integrated, inclusive, and sustainable. As such, these cities have undergone a transformation that enables them to meet the needs of their citizens through innovative infrastructure planning and management (Sabirov et al., 2021). Governments have adopted integrated planning methodologies, including multi-objective decision-making and life-cycle budgeting, to carry out their processes. The future of urban life is closely linked to sustainable development plans that promote environmental protection to improve the quality of life for all members of society.
This explains why PPPs help develop cities. The private sector helps to develop infrastructure that serves as a foundation for future development. This allows governments to use PPPs to accomplish sustainable development objectives through investing in land and human capital, providing incentives for businesses, reducing barriers to infrastructure development, and expanding the boundaries of cities. The private sector can achieve these objectives through risk transfer, financial liquidity, and intellectual capital. The PPPs are a valuable tool for developing cities, as they allow governments to use them to accomplish sustainable development objectives through investing in land and human capital, providing incentives for businesses, reducing barriers to infrastructure development, and expanding the boundaries of cities. Nguyen & Garvin 2019 reviewed the global city concept and its implications on urban policy. Global cities have undergone a transformation that enables them to meet the needs of their citizens through innovative infrastructure planning and management (Acharya et al., 2022). Governments have adopted integrated planning methodologies, including multi-objective decision-making and life-cycle budgeting, to carry out their processes. The future of urban life is closely linked to sustainable development plans that promote environmental protection to improve the quality of life for all members of society.
Foster an enabling environment for private sector growth by reducing bureaucratic hurdles, streamlining regulations, and promoting ease of business.
Fostering an enabling environment for the free flow, release, and easing of capital domestically and internationally is critical to long-term growth and prosperity. This requires rebalancing state organizations by downsizing the bureaucracy with particular attention paid to the regulatory organizations (Narula & Zhan, 2019). The authorities must create a functional framework that supports private sector activity and balances the needs of social protection, environmental conservation, and economic development.
Acharya et al., 2022 on the issue that the partnership works well when there is complementarity between the government and private sector in their efforts to achieve a shared goal. In addition, creating a partnership with the private sector can increase the government’s ability to achieve development goals at lower cost and increased efficiency. For public-private partnerships (PPPs) to succeed, governments must ensure sufficient coordination between the two partners. Private sector participation in PPP projects can benefit from the synergy of a public sector role by creating aligned goals and objectives. In addition, the private sector gains access to financing through public agencies (Nguyen & Garvin, 2019). Governments can also make PPPs more attractive by adopting policies that resonate with the private sector’s development goals. By collaborating with the private sector in PPP projects, governments can improve efficiency by reducing duplicative implementations of public projects, increasing the credibility of their development strategies, and securing capital resources.
Acharya et al., 2022 on that issue are cities are increasingly complex places where interacting actors come into play to respond to pressing social issues. Cities are responsible for providing services to an average of three million people each, where infrastructure often needs to be funded and better managed. As a result, cities face serious challenges, and public-private partnerships (PPPs) can be a suitable response to the problems at hand (Khasru & Siracusa, 2020). PPPs allow the government to partner with the private sector to complete projects quickly and effectively while using fewer resources than they would otherwise need. This approach is critical in underdeveloped countries because it enables the government to use private expertise while mitigating risk.
This explains that the efficient use of public funding is an essential priority for national budget-makers. PPPs can help governments achieve their objectives at lower costs and increased efficiency. However, developing and implementing a PPP program requires significant effort and political support from the highest levels of government for sustained success (Peleg Mizrachi & Tal, 2022). At the beginning of this process is the need to develop an overall framework for public-private partnership policy and action that covers project selection criteria, insurance, and legal measures to mitigate risk.
Increasing Private Sector participation in an economic system.
Increasing the private sector’s share in the economy will increase the share of gross domestic product (GDP) and the annual growth rate. Private sector participation in a country’s economy measures its overall economic development (Zhang et al., 2021). It indicates whether private ownership, and therefore competition, plays an important role in determining investment decisions, whether firms have the capital to invest, and whether there is pressure for greater productivity. The higher the private share becomes, the more competitive the economy will be. In addition, rising private sector participation would enable an increase in exports. Private sector growth requires a strong and efficient government (Nguyen & Garvin, 2019). Public support for private investment is also required to ensure that market incentives work effectively and that public goods are provided efficiently. In addition, although budget constraints may constrain much of the government’s ability to help spur economic growth, many tools are still available to support private sector growth.
Sabirov et al., 2021 on the purpose of their study, that the growth of the private sector is a vital concern for both the public and private sectors. The private sector has become increasingly important in recent years, contributing approximately 38 percent to national income and 83 percent to total employment. While this may seem like a high percentage, it still represents less than half of what it was only 30 years ago; this share is increasing slower than anticipated. This instability arises because, in many countries, the private sector significantly contributes to economic growth and development (Chikaza & Simatele, 2021). The development of this sector can be enhanced through private-public partnerships (PPPs). In addition, the government should encourage investment in education for all sectors of society. The government should also provide tax incentives for the private sector.
In order to increase economic growth, the government has a role in creating a favorable investment environment. Creating that environment requires three major policy components: developing a legal framework, establishing physical infrastructure and institutions, and improving education quality (Khasru & Siracusa, 2020). Concerning the legal framework, governments must develop a proper regulatory framework and maintain transparency in public procurement. Public infrastructure can also be an effective economic growth mechanism, enabling companies to develop more efficiently and effectively (Narula & Zhan, 2019). Infrastructure development is supported through investment tax credits (ITCs), which cut the cost of fuelling commercial vehicles by 80 percent for fleet operators.
Performance and quality of the internal institutional environment within a country are crucial for the private sector’s success. The country must have a stable political framework with sufficient legal protection and regulatory mechanisms to guarantee predictability in government policymaking, including adequate regulatory oversight and financial stability measures. In addition, governments must provide a favorable investment environment through tax incentives that respond to the needs of particular industries and the formation of a healthy business environment.
The development of education at all levels is vital in assisting the country to improve its economic development and growth. Not only does education improve the skills of those who are educated, but it also benefits those who receive that education. For example, optimal use of the country’s natural resources requires an educated labor force (Peleg Mizrachi & Tal, 2022). Therefore, there must be sufficient funding to develop and expand the education system across all levels. In addition, providing training to the population at large will reduce the risks of businesses needing help finding workers with the necessary skills and knowledge.
Regarding factors that inhibit economic growth, the government must remove barriers to private sector growth through PPP. These projects are long-term and require significant financing. The financing is usually in the form of foreign investment, so governments may need to work closely with international financial institutions to secure those funds. These projects also face problems securing funding because of the high transaction costs (Sabirov et al., 2021). The impact of a country’s business environment has a significant impact on the development of its private sector. The private sector plays a vital role in economic development and growth. The government needs to take action to help the private sector flourish, which may include the development of new policies and institutions.
Lee 2019 discusses how the private sector can increase its economic participation. In order to do so, the private sector must improve the quality of its internal environment. Lee uses the term “token ecology” to define this environment. Lee defines a token ecology as a decentralized, transparent, and linked system by common interests. Then, rather than being highly regulated by a single authority, Lee says the environment should be open and decentralized. Lee then explains why decentralization is essential in a token economy. First, the centralization of information weakens the ability of the market to learn. Second, power centralization allows fewer individuals to control the environment (Lee, 2019). Early on, this type of system is beneficial because it allows for a more agile and quickly adapting economy. However, in a long-term outlook, centralized systems are seen as inferior because they need to retain their ability to adapt.
Lee then gives examples of environments more conducive to private sector growth. These include environments that are suspicious of private enterprise and those that do not provide incentives for developing human capital. Next, he explains that token economies tend to consist of various participants (Morris & Staritz, 2019). These participants have different motivations for participating in the economy, which can lead to conflicts over the proper ownership or use of property or resources. Thus, a successful economic policy must create incentive structures and protect property rights. Lee then explains the idea of “token-incentivized cooperation” and how it can improve overall growth.
Lee then discusses the “token-incentivized” mechanism, which involves a market-based mechanism whereby cooperating agents are incentivized to cooperate. Specifically, Lee says that if the benefits of cooperation exceed the costs, individuals will agree to cooperate. The central issue with this approach is that it relies on trust between all parties. If this trust is lost, it may lead to a breakdown in mitigating harm, leading to conflict.
Lee then discusses how to use blockchain and cryptocurrency within this environment. One way is to create a token that can facilitate the transfer of value from one agent to another. This can be achieved by creating a token with inherent value and increasing in value when the agents take specific actions. This could be accomplished with smart contracts, which would automate the transaction. In order for this system to work, proper implementation must be conducted. This involves appropriately designing, coding, and testing intelligent contracts (Khasru & Siracusa, 2020). He discusses problems that can occur in implementing token economies. First, an equilibrium must exist for the system to function correctly. The equilibrium must lead to the most efficient and optimal use of resources. However, reaching this equilibrium can be challenging because it requires coordination between all agents. Additionally, each agent may need more information about the environment or other agents’ preferences.
The author then discusses the benefits of implementing these systems. First, they can help to level the playing field in areas where one has a significant advantage over another. It also can lead to a more stable environment that can better adjust to information flow or demand changes. Lastly, these systems increase the efficiency of an economy’s participation and overall growth. He then points out several potential challenges for implementing this system. First, many laws affect the issuance of tokens. These include anti-money laundering, securities, and anti-fraud laws that must be followed (Chikaza & Simatele, 2021). Next, blockchain technology has yet to be widely adopted. As a result, there are many concerns about its future without proper funding or support from the government. Additionally, this system could lead to the creation of monopolies by specific agents. Lee then discusses how power relationships within the token economy can play essential roles in ensuring its success.
Encourage private sector investment in critical sectors through targeted incentives, such as tax breaks, investment subsidies, and special economic zones.
For a country that is going through the process of economic development, the encouragement of private-sector investment is necessary. To encourage investment, the government can use selective incentives, leading to underinvestment by firms (Sabirov et al., 2021). For example, initial tax incentives can be offered to private sector firms in specific locations. These incentives include tax holidays, property tax reductions, and reduced licensing fees. This incentive can provide a reason for firms to locate in these areas. If the government wants additional investment, it may offer subsidies. For example, the government may offer subsidies such as lower interest rates or cheaper credit terms. These subsidies can lead to more investment by the private sector.
Funding these incentives requires government revenue. To acquire additional revenue, governments may sell a minority stake in the newly established firms. In return, they would receive cash upfront. It is recommended that the government hold a minority stake to protect against fraud (Khasru & Siracusa, 2020). Another tool governments may use to encourage investment from firms is the creation of special zones for development. Four types of special zones may be established. These include industrial parks, export processing zones, free trade zones, and science and technology development zones (Lee, 2019). The government may choose to offer tax incentives to firms that locate in these zones.
Additionally, there are various other ways the government can impact investment in specific sectors. For example, governments can improve the competitiveness of their investment climates through the installation of new infrastructure and by removing barriers to entry. Investment can also be promoted through the importation of foreign technology. It is recommended that this be done with the help of research institutes and think tanks.
Narula & Zhan 2019 on how to use special economic zones to facilitate development.
Incentivize business investment through the establishment of special economic zones.
This approach is similar to that used in developing countries but also involves tax incentives (Sabirov et al., 2021). This approach could help firms locate in these areas and provide them with better access to funds, technology, and skilled labor. For example, firms may receive tax holidays for a certain period if they decide to locate in a special economic zone. Additionally, the government may provide different industries with special investment assistance. This assistance can be used to facilitate the development and growth of the industry. The government may implement new regulations and restrictions on firms located in these zones. For example, it could require that firms pay special fees or impose other restrictions. These measures can promote competition within the industry and ensure that all firms are being reasonably treated.
Promoting public-private partnerships (PPPs) in infrastructure development, such as transportation, energy, and telecommunications, to leverage private sector expertise, investment, and efficiency.
There are four different approaches used to promote PPPs in infrastructure development. The first approach involves promoting public-private partnerships by forming joint ventures between the government and private firms. The second approach involves privatization by selling state-owned assets to private firms. The third approach promotes privatization by establishing a regulatory scheme that removes barriers preventing private sector entry into state-owned enterprises (Chikaza & Simatele, 2021). The final approach involves establishing infrastructure funds provided with equity and debt capital from the private sector. This approach also includes selecting infrastructure projects with high social payoffs and carefully planning projects (Narula & Zhan, 2019). This can help reduce inefficiencies from mismanagement or insufficient investment in infrastructure. Additionally, looking at the potential for competition within industries is essential.
Chikaza & Simatele 2021 on Increasing Private Sector Participation in an economic system by Using Public Private Partnerships. Increase private sector participation in the construction of infrastructure. This approach involves the promotion of public-private partnerships between the government and private firms. This can be done by establishing joint ventures or allowing for the privatization of state-owned assets. This approach aims to increase private sector involvement in infrastructure investment by providing cheaper capital and access to technology (Sabirov et al., 2021). This approach is beneficial to both the government and private sector. For example, it can lead to increased investment in the economy and help establish new industries. Various regulations can be imposed to ensure that the private sector receives a fair deal in these public-private partnerships. One of these deals with transparency policies. These policies require the government to be transparent and accountable in its use of funds. Additionally, some regulations can be set up to prevent collusion among firms within the industry (Morris & Staritz, 2019). For example, some regulations prevent firms from entering into voluntary restraints or agreements.
Another regulation that can help protect against fraud is the requirement of good corporate governance. This regulation can help protect against insider trading and embezzlement. It also helps promote sound management and helps ensure that the government does not get involved in activities threatening market efficiency. Chikaza & Simatele 2021 on Privatizing state-owned firms and promoting competition among businesses using regulatory policies such as introducing price controls, entry regulation, and antitrust laws. This approach can reduce government involvement in the economy. Resources can be used more efficiently by reducing government involvement in the economy. Additionally, this measure can increase competition within an industry (Zhang et al., 2021). This competition ensures that all firms are being treated fairly.
Using this approach, it is essential to identify which industries are most vulnerable to competition and craft regulation policies that will impact them most. These policies can be used to improve the efficiency of the market and ensure that all firms in the industry are receiving a fair deal. Chikaza & Simatele 2021 Ensure that private firms can provide the most access and flexibility to investment (Chikaza & Simatele, 2021). This approach can increase efficiency and reduce government involvement in the economy. Resources can be used more efficiently by allowing for more private sector involvement in infrastructure, and all firms will be treated fairly.
Right and productive regulatory approach.
The state has traditionally dominated infrastructure development and financing. However, increasingly the private sector is being called upon to partner with the public sector in financing, constructing, and operating infrastructure for efficiency, quality control, and increased access. Many African countries have adopted PPPs in various sectors of their economies. During this transition, many challenges were expressed by policymakers and stakeholders playing different roles in these transactions (Sabirov et al., 2021). Institutional arrangements and policy frameworks are critical for the success of this transition. Sub-Saharan Africa has been the poorest region in the world for decades. Infrastructure investment is critical to economic growth and poverty reduction. PPPs are a crucial component of infrastructure financing and can bring efficiency, cost savings, improved quality, value-added delivery, and integration with other development components (Chikaza & Simatele, 2021). However, they require a sound policy framework that ensures they are well implemented to provide sustainable benefits.
The state has traditionally dominated infrastructure development and financing. However, increasingly the private sector is being called upon to partner with the public sector in financing, constructing, and operating infrastructure for efficiency, quality control, and increased access. Reviewing relevant literature on PPPs in Sub-Saharan Africa shows that it was mainly funded by donors (such as World Bank and the EU), that it had been a prolonged process (often taking years) with only isolated cases of PPPs emerging in the region (Narula & Zhan, 2019). Many African countries have adopted PPPs in various sectors of their economies. During this transition, many challenges were expressed by policymakers and stakeholders playing different roles in these transactions. Institutional arrangements and policy frameworks are critical for the success of this transition. Sub-Saharan Africa has been the poorest region in the world for decades. Infrastructure investment is critical to economic growth and poverty reduction (Sabirov et al., 2021). PPPs are a crucial component of infrastructure financing and can bring efficiency, cost savings, improved quality, value-added delivery, and integration with other development components.
Mastini et al. 2021 on the agenda for action to support the green economy in Sub-Saharan Africa and promote better policymaking (Wise, 2002). This approach can reduce government involvement in the economy. Resources can be used more efficiently by allowing for more private sector involvement in infrastructure. Additionally, this measure can increase competition within an industry. This competition ensures that all firms are being treated fairly. Mastini et al. 2021 on the importance of prudence in policy and investment decisions, which require a thorough understanding of the state of the environment (Chikaza & Simatele, 2021). This approach can help ensure that investments are sustainable. By investing in green technology, firms will increase their competitiveness and be able to enforce their existing patents against other companies to protect their existing investment in the future.
Mastini et al. 2021 on providing incentives for private actors to participate in waste management and urban infrastructure projects. This approach can encourage development. By developing green technology, the private sector can gain the upper hand over the public sector, allowing them to pursue development on their terms. Mastini et al. 2021 on the importance of not allowing political interference in regulators’ decision-making. This approach can protect investments and help ensure that firms are treated fairly. Reducing government involvement in industries makes it possible to ensure that all firms are treated fairly and have a fair chance of succeeding.
Mastini et al. 2021 on the need for a transparent and multi-stakeholder deliberative process to develop appropriate minimum standards for sustainable development (Wise, 2002). This approach can help ensure that regulations are being followed. By creating a transparent process that allows input from all parties, it is possible to ensure that regulations are followed, and beneficial policies are being crafted. Mastini et al. 2021 on the importance of encouraging long-term investment in infrastructure projects. This approach ensures that plants are being developed. Projects running over a long period will increase the efficiency of resources being invested in these projects. This approach ensures that investments will last longer and increase long-term profits for firms. Mastini et al., 2021 on the importance of substantial property rights (Chikaza & Simatele, 2021). This approach can protect investments and ensure that all firms are treated fairly. By allowing for more substantial property rights, firms will be able to enforce their existing patents against other firms to protect their existing investment in the future. Additionally, this measure can increase competition within an industry. This competition ensures that all firms are being treated fairly.
Mastini et al. 2021 must develop appropriate standards and procedures for enabling public institutions and services. This approach can prevent corruption and ensure that all firms are treated fairly. By interfering with the public sector, governments can obstruct competition. Creating a transparent process that allows input from all parties makes it possible to ensure that regulations are followed and beneficial policies are crafted.
Tien et al., 2021 on how economies can create sustainable jobs through private sector development on the right and productive regulatory approach.
Tien et al. 2021 on the need for a strategic approach to investments in the IT sector to encourage value creation. For private firms to succeed and increase market share, an organization must have a strategic plan to guide them through medium and long-term investments. This approach can help ensure that environmentally friendly technology is used in all firms (Mastini et al., 2021). By investing in green technology, firms will increase their competitiveness and be able to enforce their existing patents against other companies to protect their existing investment in the future. Tien et al. 2021 on the importance of strategic planning at firm levels. This approach ensures that firms use green technology and have an advantage over other firms. By investing in green technology, firms will increase their competitiveness and be able to enforce their patents against other firms to protect their investment in the future.
Tien et al. 2021 on the importance of setting clear standards of corporate social responsibility (CSR) policies and standards across industries to ensure that they become globally aligned. This approach can help protect investments and ensure that all firms are treated fairly. Creating a transparent process that allows input from all parties makes it possible to ensure that regulations are followed and beneficial policies are crafted. Tien et al. 2021 on how CSR can contribute to competitiveness in the sector and lead to economic development (Khasru & Siracusa, 2020). This approach can help prevent corruption and ensure that all firms are treated fairly. By allowing for more substantial property rights, firms will be able to enforce their patents against other firms to protect their existing investments in the future. Additionally, this measure can increase competition within an industry. This competition ensures that all firms are being treated fairly.
Tien et al. 2021 on the importance of setting fair codes of conduct for companies to protect and enhance worker rights in Vietnam. This approach can help prevent corruption and ensure that all firms are treated fairly. By allowing for more substantial property rights and public sector accountability, it is possible to ensure that firms are being treated fairly. Tien et al. 2021 on the need for a sustainable and competitive system to generate foreign investment in Vietnam. Varying regulatory costs will affect the healthy choice of location. This approach ensures that firms are treated fairly and have a fair chance of succeeding. Tien et al. 2021 on the need for a coordinated, systematic approach to capital market regulation to create a balanced economy. Capital markets play an essential role in the rapid and efficient allocation of funds throughout an economy (Sabirov et al., 2021). This approach ensures that regulation is followed and beneficial policies are crafted. Human resources management can help improve competitiveness, productivity, innovation, and performance in information technology industries.
Establish clear and transparent regulatory frameworks that promote fair competition, consumer protection, and environmental sustainability.
Regulatory frameworks should be efficient and ensure that firms are being treated fairly. Create a regulatory framework that encourages efficient resource allocation in the developing market, particularly for research and development. Allowing for more efficient resource allocation will increase the technological capital in the economy and provide a fair chance for firms. Regulate the use of information technologies, particularly in the developing country context (Tien et al., 2021). This approach can help increase productivity, innovation, and performance. Information technology is vital in an organization’s strategies to reach its goals. Establish a regulatory framework that provides a consistent and predictable environment that supports fair competition and consumer protection. This approach can allow for accountability and facilitate the development of a strong market economy across all industries.
Establish a coordinated and systematic regulatory framework that is accessible across the board. This approach can help ensure that firms are not being mistreated.
Establish appropriate legal bases for information technology, such as intellectual property rights, labor, and public health regulations. This approach helps to ensure that all firms can enforce their existing patents against other companies and protect their existing investments in the future. Additionally, this measure can increase competition within an industry. This competition ensures that all firms are being treated fairly.
Establish a framework of public services and services to the private sector aligned with the private sector development agenda. This approach ensures that firms are treated fairly and have a fair chance of succeeding.
Kindylidi & Cabral 2021 on the right and productive regulatory approach through intellectual property rights, labor, and public health frameworks. This framework ensures that all firms are treated fairly and have a fair chance of succeeding. They show how regulatory policies in information technology can promote sustainable development by creating a trusting economy, forming a thriving environment for agents and creators, and stimulating innovation and entrepreneurship (Zhang et al., 2021). This approach ensures that all firms are treated fairly—licensing, standards and certification, and other regulatory approaches that stimulate information technology innovation.
Kindylidi & Cabral 2021 on the need to promote policy friendliness towards information technology, specifically in developing countries (e.g., Vietnam). This approach ensures that all firms are treated fairly and have a fair chance of succeeding. In developing countries such as Vietnam, deregulating the telecommunications sector will bring higher competition, which can help improve competitiveness and productivity. This approach ensures that all firms are treated fairly (Tien et al., 2021). The provision of information technology goods and services to consumers must be regulated under intellectual property rights to achieve high consumer protection. This framework ensures that all firms are treated fairly and have a fair chance of succeeding.
Peleg Mizrachi & Tal (2022). Right and productive regulatory approach through intellectual property rights, labor, and public health frameworks. This framework ensures that all firms are treated fairly and have a fair chance of succeeding. Peleg Mizrachi & Tal 2022 on the need for a coordinated, systematic approach to capital market regulation to create a balanced economy. Capital markets play an essential role in the rapid and efficient allocation of funds throughout an economy. This approach ensures that regulation is followed and beneficial policies are crafted. Human resources management can help improve competitiveness, productivity, innovation, and performance in information technology industries. Strengthen existing and create new public services and services to the private sector aligned with the private sector development agenda. This approach ensures that firms are treated fairly and have a fair chance of succeeding.
Establish appropriate legal bases for information technology, such as intellectual property rights and energy regulations. This approach can increase competition between firms and decrease the likelihood of monopolization. Establish effective coordination between the private sector, government, stakeholders, and international organizations to achieve policy goals. This approach ensures that regulatory frameworks are implemented promptly and that they are being adequately enforced.
Developing regulatory systems that balance the need for oversight with flexibility and adaptability to changing market conditions.
By developing the system balance in the regulatory approach, the regulations should not be too burdensome on firms, and overall regulation should efficiently achieve stated goals. This approach can help ensure that firms are treated fairly and have a fair chance of succeeding (Kindylidi & Cabral, 2021). Develop appropriate legal bases for information technology that align with the private sector development agenda. Establishing and implementing policies that promote a trusting economy, stimulate innovation and entrepreneurship, create an environment for agents, and foster competitiveness. Foster investment levels in R&D to allow information technology companies to innovate, compete effectively, and ensure long-term viability.
Develop appropriate mechanisms for regulating the supply chain in information technology, such as intellectual property rights and labor laws. Creating a coordinated regulatory framework for capital market regulation that balances an efficient allocation of funds across sectors, fosters competition between investment companies, and enables the provision of more efficient services to investors (Narula & Zhan, 2019). This approach ensures that regulation is followed and beneficial policies are crafted.
They are developing, enforcing, and discarding regulations based on fair competition and fair competition policy. This approach can maximize investment output in R & D and increase competitiveness, productivity, innovation, and performance in information technology industries. They are developing appropriate mechanisms for monitoring the effects of government intervention on the business environment, such as intellectual property rights regimes (Khasru & Siracusa, 2020). This approach can improve coordination between government officials and businesses. They are developing, enforcing, and discarding regulations based on fair competition and fair competition policy. This approach can maximize investment output in R & D and increase competitiveness, productivity, innovation, and performance in information technology industries. They are developing appropriate regulatory mechanisms for Internet-based activities to prevent possible abuses of consumers and limit effective competition from foreign companies operating in the country’s market (Kindylidi & Cabral, 2021). Tarbert, 2020 To ensure industrial safety and health in the long run, the government must control a safety system that actively monitors, regulates and eliminates hazards. Safety regulation needs to be improved; a systematic approach is required to develop sophisticated methods and regulations within each sector.
Tarbert 2020 From a philosophical standpoint, regulation focusing on action patterns such as behavior and output benefits society. The proactive approach should focus on individuals’ motivations that shape their workplace behaviors. This approach ensures that firms are treated fairly and have a fair chance of succeeding. Tarbert, 2020 To achieve a high level of consumer protection without significantly increasing costs, creating an independent regulatory agency specifically designed to protect consumers may be necessary (Nguyen & Garvin, 2019). This is a more costly, cumbersome, and time-consuming process than the current structure based on regulation by self-regulation, but it is necessary.
Tarbert, (2020). Under the current system, firms responsible for maintaining labor standards in high-risk industries are charged mainly with monitoring their hiring practices. The Labor Standards Act of 1987 has proven to be ineffective because it focuses on the protection of workers instead of the protection of consumers. As a result, many firms need to be provided with the necessary incentives, resulting in substandard and unsafe practices. This approach ensures that firms are treated fairly and have a fair chance of succeeding. Tarbert, 2020 The system of self-regulation is an act of trust on the part of both employers and employees. However, this trust has been broken in specific industries where sloppy practices by workers have led to serious workplace accidents (Peleg Mizrachi & Tal, 2022). The disaster at Chornobyl must have been one such incident where trust between managers and labor groups was broken.
Roadmap to Local Industrial Development.
Through the roadmap to local industries development on how to create sustainable jobs through sector-specific economic development, it is essential to understand the characteristics of local industries. A society’s overall organization and economic structure play a significant role in determining efficiency. Through the roadmap to local industries development, the government should be proactive in responding to challenges inherent to specific sectors (Kindylidi & Cabral, 2021). Through developing appropriate legal bases for information technology, governments need to establish and enforce laws in line with laws passed by other countries focused on these industries.
Zhang et al., 2021 discussed how a roadmap to Local Industrial Development could benefit the BRI region. The authors argue that financial mechanisms such as green finance play a significant role in promoting inclusive growth and poverty reduction by increasing investment in rural non-energy sectors. However, they also note balancing private and public investments is essential to promote inclusive growth (Tarbert, 2020). Developing resource-conserving technologies, simplifying resource use in the agricultural sector, and improving compliance with environmental regulations, among other actions for sustainable development (Narula & Zhan, 2019). They also note that the government can help protect dwindling resources by developing sector-specific economic strategies.
The Bridge Between Public Sector Development and Private Sector Development:
The private sector can benefit from government funding for skill enhancement and knowledge acquisition through the public-private partnership. These companies are expected to become more competitive in the information technology industries. As such, it is essential to develop an appropriate legal framework to smoothly transition from manufacturing to information technology sectors (Khasru & Siracusa, 2020). This can be accomplished by developing appropriate legal guidelines that guarantee the private sector an equitable share of the government’s support.
Strengthen linkages between large-scale industries and local SMEs through supplier development programs, mentorship, and access to financing.
Promote technical and vocational education, entrepreneurial training initiatives, and incentives to increase labor productivity. Encourage innovation by SMEs through providing support services (small-business development centers) and special incentives such as tax credits. This type of support may result in new markets for innovative SMEs and a more competitive environment (Kindylidi & Cabral, 2021). The Business Incubation Program is one of the few programs that enables organizations to develop high-growth potential sectors. Local governments and the private sector are encouraged to cooperate on special programs like this to maximize their resources.
Anoyrkati et al., 2023 on the factors that encourage competitiveness in SMEs and play a positive role in developing Transport SMEs. In this investigation, West Midlands regions are studied, and their competitive positions are investigated. The case study is divided into three key areas: the environment, labor market conditions, and the financial sector (Kindylidi & Cabral, 2021). Supply-side factors that benefit transport SMEs are also considered, such as investment incentives and access to finance for transport-related start-ups.
The competitiveness of transport SMEs can be increased through legislation that encourages and supports the development of new transport infrastructure. The development of public transport in some West Midlands areas has benefited many transport companies, and this is an effective way to encourage exploration for future profitable investments (Tarbert, 2020). One concern is that increased infrastructure investment may increase operational costs for transport SMEs. If a company cannot afford the higher operational costs, it may have to cease operations. The labor market conditions within the West Midlands are conducive to economic development and growth within the transport sector. The local labor force has high amounts of STEM skills, which benefits many vital industries such as transport. As local companies require more STEM workers, they will further stimulate economic growth in existing sectors (Khasru & Siracusa, 2020). Financial support for transport SMEs is another factor that can be initiated through legal mechanisms. The financial sector supports the integration of SMEs into new and existing markets, and this financial support should be used to develop transport companies long-term. However, there is no incentive for transport SMEs to invest in the provision of services due to changes in legislation implemented over time. Therefore, access to finance should be developed by the government in order to encourage companies to make long-term investments in strategic sectors.
The study on socio-economic conditions and transport business activities in the West Midlands of England by Anoyrkati et al. (2023) study has been examined by many researchers, who have continued their research to understand better the factors that impact the economy and transportation sector in West Midlands England. The study of the factors is based on interviews, surveys, and analysis of existing data, which revealed that the competitiveness of transport SMEs in West Midlands was affected by various variables (Zhang et al., 2021). The authors have suggested ways to improve competitiveness over time and create a more favorable environment for transport SMEs by addressing critical aspects such as labor market conditions, innovation, and investment incentives.
Based on the findings from Anoyrkati et al. (2023), the competitiveness of SMEs in the West Midlands region of England is determined by external factors, such as the environment, labor market conditions, and the financial sector. The competitiveness of transport companies in the West Midlands has been influenced by increased investment in infrastructure and access to finance (Narula & Zhan, 2019). The authors have argued that developing transport infrastructure in different parts of the UK will create investment incentives for new businesses, positively influencing their competitiveness.
Develop comprehensive industrial policies focusing on value addition, technology transfer, and local content requirements to boost domestic industries.
Policymakers can increase the development of SMEs by providing them with the necessary support. Growing SMEs are found to experience a pull-through effect that benefits the economy as a whole. For example, local SMEs can provide business inputs, particularly technology and skilled labor, which can benefit large companies within the same or other industries. The presence of a dynamic and growing SME sector is found to create new job opportunities for workers. This can contribute to decreasing unemployment.
Furthermore, a strong SME sector means more participation in global markets (Kindylidi & Cabral, 2021). If a local SME is successful, it contributes to the development of the economy and will draw in more investors. The government can encourage this effect by creating policies that support innovation and investment in high-value-added industries.
In addition to direct support for SMEs, policies should be implemented to improve all domestic firms’ competitiveness. Governments, through implementing intelligent industrial policies, have an essential role in developing big and small businesses. In addition, to supporting SMEs and providing general support to domestic industries, the government must fund research and development (R&D) activities in universities, which will lead to the development of new technologies. The government can also help local SMEs by providing incentives and disincentives (Tarbert, 2020). For example, suppose a particular sector is proliferating. In that case, local SMEs should be given incentives to train workers in a particular industry or encourage firms to add these capabilities. As discussed earlier, the competitiveness of domestic firms is primarily influenced by global markets.
Morris & Staritz (2019) discussed the importance of balancing domestic and international value chains by providing a global perspective. Domestic industries usually supply things to the international market more rationally and efficiently. However, a domestic industry that is too dominant in the international market may be disadvantaged in retaining its competitiveness, which could lead to loss of competitiveness and possibly bankruptcy. In order to support SMEs from significant countries to develop their potential on the global level, governments need to focus on the international dimension and cooperation with domestic industries.
Morris & Staritz 2019 mentioned, “The most effective way to achieve this would be to implement policies that support transformative changes in innovative PDV while also developing a positive learning environment and favorable conditions for domestic firms. The latter can be achieved by establishing a supportive environment through the adoption of appropriate strategies, public policies, and industry regulations (Peleg Mizrachi & Tal 2022). For example, the government can facilitate the development of domestic SMEs in global value chains by developing an infrastructure and support mechanisms within the industry to address common challenges.”
Throughout recent decades, the effects of globalization on enterprises internationally have led to changes in how far a company may operate internationally and how different countries approach specific issues. One such issue is that many developing countries seek to attract foreign direct investment (FDI) from developed ones (Morris & Staritz, 2019). The purpose is to gain funds for development. However, many recently emerging market economies (EMEs) find competing increasingly difficult with advanced economies. In this context, governments and businesses must ensure that the phase of globalization continues to grow and continue to benefit their countries. In order to do so, they must work to promote globalization and modernization.
As seen from the report by Morris & Staritz 2019, the globalization of trade has driven a transformation in the international economy. In this context, governments across EMEs must work to optimize their capabilities, including achieving higher productivity and competitiveness in the global economy. In order to do so, they need to support their national industries in their competitive processes on a global scale. For instance, SMEs will often need help to achieve competitive performance and may only sometimes be competitive enough to succeed (Nguyen & Garvin, 2019). In this case, governments have a role to play and actively engage with SMEs to support their competitive efforts.
Conclusion
Industrialization requires a combination of public and private sectors. The public sector needs to provide adequate capacity building to the private sector in different areas such as research and development, technology transfer, BT, and marketing. The role of the private sector must be to help build the indigenous capacity in R&D, marketing, and BT so that the country can reap benefits from its people. Economies create sustainable jobs through private sector development, supporting a PPP approach of empowering private industries. Local industrial development requires an intelligent roadmap to economic growth based on developing a solid and sustainable Industrial mix with SMEs playing a significant role.
A proper and productive regulatory approach is required to increase the market share of local SMEs in the global value chain. By ensuring the participation of private sectors in the economic system, industrialization can be successful and sustainable. This sector has grown in the last decade, and many companies have succeeded. The reason for this is the rise of consumerism owing to increased disposable income. Products like electronics, appliances, clothing, and food target all population sectors. The more lucrative market includes but is not limited to the middle-to-upper classes. This sector is very much dependent on market demand which can affect the market value of a product significantly. If this product is not sold, the venture to supply it will no longer be worth it.
In order to ensure that enough demand exists in the market, companies need to ensure that they can sell what they produce. They also need to ensure that their quality and production standards are high so that consumers will be willing to buy products from a company rather than make an alternative. This creates a positive loop of production and sales for each company involved in the chain, leading it to a profitable operation. Examining the consumption patterns of those with a higher income level is essential to analyze the middle-class market further. According to a report by the World Bank, some people comprise this class of people that enjoy more disposable income. It then explains what these people buy and how much they spend on purchases.
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