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Of great
importance to their autonomy, officials were able to disconnect themselves
from total reliance on local funding thanks to financial assistance from
the international community and reparations from Germany. Two figureheads
within the government guaranteed a decisive and coherent economic policy:
Levi Eshkol of the Ministry of Finance, and Pinhas Sapir of the Ministry of
Commerce and Industry. They worked hand-in-hand to formulate a unifying
agenda that bureaucrats from both departments could pursue towards a single
common goal.
The end-product of this labor in both nations was a financial
structure in which banks, and by extension the government at large,
controlled the flow of capital. On one hand, banks in Israel were
autonomous only to the extent that the central bank's severe regulations
and restrictions allowed. The government used the banking system as a means
of regulating its own financial initiatives. Private domestic capital, of
which includes bonds and savings accounts, had restrictions enforced by the
MOF so that the government could quickly utilize these funds should the
state's budget deficit spiral out of control. The Bank of Israel, Israel's
central bank, also set high liquidity ratios to limit the amount...
Banks were
also the major beneficiaries in the Israeli stock boom of 1962-1964, due to
their ownership of 22 of the 34 companies listed on the exchange. This
success was due to the fact that the central bank cherry picked which bank-
funded projects best coalesced with the government's most valued sectors of
development. This subject will be expanded upon further two paragraphs
down.
On the other hand, the banking system in South Korea was owned and
controlled by the government with an iron grip. Even after centralizing the
five major banks in 1961, South Korea failed to utilize private domestic
capital in the way that Israel had.
Instead of allowing the market to determine what sectors investment
monies were to be spent in, South Korea and Israel dictated investment
policies through plan-based initiatives. One instance where the state
formulated and guided a successful investment endeavor was in the case of
textiles. Israeli officials, in particular MOCI chief Pinhas Sapir,
envisioned in the Textile Industry Development Plan that by 1966, twelve
major textile manufacturing plants would be operational and ultimately
produce 26% of Israel's
formulated and guided a successful investment endeavor was in the case of
textiles. Israeli officials, in particular MOCI chief Pinhas Sapir,
envisioned in the Textile Industry Development Plan that by 1966, twelve
major textile manufacturing plants would be operational and ultimately
produce 26% of Israel's
A key factor that has prompted South Korea's growth has been its strong export emphasis where growth of exports climbed 21% each year (3). The policy makers of South Korea have emphasized on skilled and high quality industries such as the motor vehicle industry and electronics manufactures. This has made South Korea currently to have the sixth largest motor vehicle industry in the world. The country is also now the
International Trade Between Bahrain and Saudi Arabia This is a paper on Trade between Bahrain and Saudi Arabia, focusing on how it affects their international trade relations with special attention to OPEC, GCC and the Qatar dispute. It uses 22 sources in MLA format. Both Saudi Arabia and Bahrain are members of the Gulf Cooperation Council along with Qatar, UAE, Kuwait and Oman. Under the GCC Agreement, preferential tariffs apply among the
U.S. Invasion of Iraq- Reasons US Invasion of Iraq: Reasons The Republic of Iraq is located in South West Asia. Baghdad is its capital and Kuwait, Jordan, Saudi Arabia, Syria, the Persian Gulf, Iran and Turkey are its neighboring countries. More than 95% of the population in Iraq is Muslim. The members of Shiites sect are the main inhabitants of the country (The Columbia Encyclopedia, Sixth Edition 2009). Saddam Hussein Takriti came in
Almost a third of the government's total revenue emanate from indirect taxes, mainly from value-added taxes (Brand South Africa, Niekerk). 3. privatization -- this process was viewed to create a robust flow of business opportunities in the next many years at a range of 100-150 billion South African Rands (PGI 2012). This is equivalent to U.S.$12-20 billion. There will be estimated and sustained business acquisition opportunities in agribusiness, agriculture and
South Korea The Political, Social, and Economic Institutions in South Korea South Korea was considered to be one of the "Asian Tigers," but that designation of strength did not stop the country from experiencing serious problems in the past. These were financial, but they were also social and political. The country went through rapid changes, including a financial crisis, but before that crisis occurred there were other issues with which the country
Energy costs increased substantially and the yen's exchange rate was shifted to a floating rate. The eventual recession reduced expectations of future growth and reduced private investment. Economic growth went down from 10% to 3.6% during the period 1974-79 and to 4.4% in the decade of the 80s. But despite the oil crisis and its consequences, Japan's major export industries stayed competitive through its cost-cutting policy and increasing efficiency.