Tuesday, February 4, 2014

Fiscal Policy and Unemployement Problem in Bangladesh

This paper will focus on two master(prenominal) concepts- unemployment and fiscal indemnity and the effect of fiscal form _or_ system of government on unemployment. The paper begins with an overview of the theories related to both concepts. Then the unemployment situation in Bangladesh is examined followed by application of theories to assess impact of fiscal policy on unemployment. Lastly, various remedies shake off been proposed regarding unemployment problem. CHAPTER 1: UNEMPLOYMENT Unemployment As delineate by the International Labor Organization (ILO), dismissed Workers ar those who argon currently not working moreover are willing and able to work for pay, currently lendable to work, and sport actively searched for work. Causes of Unemployment Unemployment is caused by various factors. Following are some(a) of the causes of unemployment: Savings-Investment Gap: Investment is an instrument of growth which is derived from preservations. But in low income countries mos t of the income is spent on consumption and and so very little is saved. As a result, investment is comparatively lower. For example, in Bangladesh domestic savings SD is lower than investment I. [S= SD+ R+EA, Where S= Saving, SD= Domestic Saving, EA= External Assistance] Hence, desired growth of saving cannot be attained as investment is lower than the itemization required. Vicious cycle of poverty: In a besotted country, due to lower savings, investment is lower which leads to low stint growth that leads to low income, which eventually again leads to low savings. It is the handless cycle of poverty and the reason why such a country cannot cultivate growth through investment. Mismatch in Skills: If people are trained to possess adroitnesss inconsistent with the acquisition requirement of the nation, than a mismatch in education ensues resulting in unemployment. Imperfect knowledge: When there is rigidity or obstructionist in the economy, workers may be misinformed and may not work knowledge about the areas wher! e work is available. Also people pick out to active where health and...If you want to get a abounding essay, score it on our website: BestEssayCheap.com

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