IAFF 6101 Chapter Notes - Chapter 11: Tacit Knowledge, Human Capital, Economic System
16 May 2016
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Klein and hadjimichael: the private sector in development. Loose definition of private sector dev: market solution, privatization, one extreme of seeing it as a greedy fulfillment at the cost of the poor and other extreme that negatively views public agencies" involvement in the private sector. Chap 1: the private sector and poverty reduction. New swedish model since 1990s trying to promote vigorous competition in the productive sectors. Challenge: abuse by powerful groups, deregulation of financial markets increases risks to the poor, not many success stories -> market reform and privatization alone are not enough. The public typically don"t trust large corps to respect social/environmental concerns, but private firms are recognized as important and effective (4). Due to open market and competition, it"s possible to reduce poverty, but there has been a lack of progress -> growth doesn"t always trickle down across countries/within them (6). The local environment must be capable to take advantage of foreign investment (7).
