Primary_Ingredient_S_for_Economic_Development_or_Role_of_Government_in_Economic_Development_

Seminar Essay No.3: SONG YANG (Andrie) 10-09-2010 Primary Ingredient/s for Economic Development or Role of Government in Economic Development' If we want to explain that answer this question. We should be understand that the definition of economic development. Economic development is the increase in the standard of living in a nation’s population with sustained growth from a simple, low-income economy to a modern, high-income economy. In other words, economic development is not just expansion of civil economy, even is elevation of economy and social living. Technological innovation and invention is root of economic development, because they are the power of resource. What can create the new money, you are no other than command yourself technology and techniques, this is only way. Science of technology is first productivity. If you just copy other country’s technology and BPO; you take the income that is not create the new money; that is diversion of money- low-technologic areas of money was deliver to high-technologic areas. And the most percentages of profit were taking by the owners of technology. By the way, if your country hope to upgrade industrial system, and you want get more percentage of second industry; even the intellectual property right was own by your self, you still controlled by technology’s owner. For example, in end of 1980s, many Chinese automobile plants import many product line of automobile from Germany-VW, France-Citroen and Japan-Toyota; at same time, Chinese did not just copy and follow their standard; Chinese engineers will remember the standard and technical flow chart, and invent some simple technological reformation to fit the special demand on Chinese market. If Chinese automobile worker not walk out this step, I think that we can not own the many good brands and ourselves technology. BYD and Chery are good example for all of Chinese own brand. And if you still work for part of product line and just do their BPO. Your development can not be go on forever, because you without support from technology. E.g. TCL is biggest ICO for LED screen TV of industry, and they also invented much technology for themselves. We should be via these two ways to upgrade and improve self own of technology, so we can really achieved purpose of development. Automobile is like this, other industry also face same question, and the solution is as same as. Most industries and most companies will be achieve this requestment, the result is will become economic development. The civilian will get advance from economic development, then they will support and continue this trend in the next years. The role of governent is a leader in economic development, the government issue some policies and direction to guide correct and easy way for economic development. Reference: http://en.wikipedia.org/wiki/Economic_development