Boosting the economy of a region

“Controlled Capitalism” is a powerful mantra to uplift the economy of a downtrodden or poor region.

First and foremost step towards improving a region’s economy is to find the existing resource within that region.

Resouce can exist in various forms: Gold, crude oil, metals, food, human resource etc. available within the region can be considered as a resource. If the country does not have any resource, then the path to improve economy is slightly strenuous; but can be done with some effort.

Controlled capitalism can be enforced efficiently by taking the following steps:

Low but effiecient Taxation: Governments (or the ruling class) should ensure that the a moderate to low taxation is enforced.

Moderate taxation ensures that the citizens are not burdened by taxes.

Stricter punishment for tax evasion combined with lower taxation can result in higher number of people turning up to pay taxes.

Moderate to low taxation policy is difficult to implement in a country where resources are scarce, as the revenue for the government (or the ruling class) is highly dependent on the tax money. In such cases, systematic spending of the tax revenue should be carried out and the proportion of spending of the tax money should be made more towards revamping the infrastructure and education sectors in the region.

Good infrastructure will attract more investments and businesses. Good education sector means more educated, well trained human resource and workforce.

Free Market with lesser regulations: Free markets help businesses to thrive in the region. Lesser governmental regulations are required inorder to promote free market. Businesses drive up employment in the region, as well as increase the purchasing power of the local people, thus energising the economy. They also contribute to region’s revenue, in the form of taxes. High level of governmental regulations tend to kill a lot of businesses.

However, there should be regulations which prevents monopolisation of a company in a sector, which is dangerous.

Sectors connected with labor laws as well as environmental pollution should be regulated in-order to prevent corporations from exploiting work-force as well as environment.

Stronger Legal system and law enforcement: Legal system plays a pivotal role in development of any region. Business owners, skilled workers and general workers would love to migrate to regions which have efficient legal system and law enforcement.

New businesses and immigrants moving into a country can be a start of new virtuous cycle in that country.

Low but efficient taxation, Free market with lesser regulations and strong legal system are the three main entities of controlled capitalism which is plays a key role to uplift a downtrodden economy.