Creating an attractive business climate may involve improving infrastructure.
Economic development initiatives are efforts to improve the economy and standard of living for residents of an area. Communities, states, and entire nations do this by taking initiatives to improve infrastructure, education and job skills, health and safety, environmental quality, and the area’s ability to compete with its neighbors on these issues. While economic development initiatives tend to have similar goals, the methods used to achieve these goals must be tailored to a specific area. Implementation plans for economic development initiatives should also consider long-term goals, as such development tends to take a long time.
Long-term economic development initiatives can work in an attempt to get rid of social problems in the community.
Among the various economic development initiatives are those that aim to improve a country’s human resources, focusing on education and vocational training opportunities. These initiatives would examine the number of students in primary, secondary and tertiary education and would aim to increase the number of students in full-time education, beginning at the primary level. This type of initiative would aim to increase the resources available to educators, such as school buildings, other facilities, and textbooks. Another factor in this policy would be the training of additional teachers to take on the task. A human resources strategy may also include initiatives to improve sanitation and health to ensure that the country’s population is fit for work.
The development of the economy of a region may imply the construction of new commercial spaces.
Alternative economic development initiatives that can be undertaken in parallel with a human resources strategy may involve the acquisition or development of technology to make industry and agriculture more efficient. This can be achieved by purchasing relevant technology from abroad or by encouraging technology transfer from foreign companies. The country could create conditions such as tax exemptions or favorable free trade zones for foreign businesses and include additional tax exemptions when technology transfer is part of the contract. Foreign companies may be encouraged to form partnerships with local companies involving some technology transfer, or the strategy may involve countertrade and offsetting whereby the foreign company fulfills additional contracts for the country.
Another type of development strategy involves the development of relevant political and economic institutions to create an enabling environment for business. These political institutions may aim to create social stability and a stronger legal system capable of defending the right to private property and the right of companies to defend ownership of assets, including intellectual property. Economic institutions like the central bank could be given the necessary powers to oversee the economy and create a viable banking system. International negotiations may aim to reduce tariff barriers and ensure that foreign companies are protected against expropriation of assets or double taxation.