Rapid-Growth Markets Forecast: Winter 2013

Sector in focus: government and public sector

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Sustainable economic growth is an ambition that unites policy-makers in the whole world. Shifting demographics, urbanization and climate change, together with the ongoing financial crisis, have left a challenging global environment for governments to navigate.

Policy-makers also play a major role in creating strong linkages with industry.

The role of government varies depending on the maturity of the market:

  • It can act as funder and provider of services where there is a tax base in place
  • It might be the beneficiary of development funds and serve as the initiator or facilitator of private sector development
  • In many instances, governments are the creators of new market structures through regulation, legislation and policy

Governments can set the conditions for successful entrepreneurship by:

  • Promoting education and culture
  • Highlighting the important contribution of entrepreneurship
  • Facilitating easy establishment of new businesses
  • Offering grant programs for people who require funding for new businesses — ranging from micro credit to government grants programs

Policy-makers also play a major role in creating strong linkages with industry.

For example, governments in Russia, India and Brazil are all focused on preserving economic growth in times of significant slowdown, creating jobs for millions of young people and taking advantage of their natural resources.

China, by contrast, has moved ahead. Its surging middle class represents a huge new consumer base. And this trend, together with continuing urbanization, means it is well placed for ongoing and significant growth.

Therefore, Chinese policy-makers are concentrating on meeting the increasingly diverse needs of a very large population. These include rising demands for health and social services.

Other emerging countries have alternative challenges to address. These comprise:

  • Constructing economic and social infrastructure
  • Creating markets
  • Ensuring food security
  • Strengthening education
  • Managing the avoidance of crises

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