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With reference to specific examples, evaluate the success of national efforts in creating jobs and providing financial assistance

in increasing LDC's level of development.

National development is associated with economic growth to generate higher revenues to improve and maintain a desirable standard of living and quality of life for citizens. To keep up with other developing countries and to increase the standard of living for citizens, many less developed countries have taken action. In this essay, we will be addressing the effectiveness and ineffectiveness of the national efforts taken to create jobs and provide financial assistance for the people living in LDCs. In giving financial assistance, Philippines contrive the KALAHI PLAN (Linking arms against poverty). The key project implemented by government in 2001 was aimed to improve standard of living of poor in Philippines by increasing the employment rate and income of the poor. The plan provides the poor to work in the informal sector consisting of small family run businesses by paying more attention and contribute resources to the poor, helps informal sector develop e.g. Pro-poor policies implemented help more people develop and grow small businesses. Microfinance (small loans) given to them. It also ensured money and effort to not be wasted as the government and Non-Government Organisations (NGOs) monitored loans given out to entrepreneurs whose businesses would be productive. Ultra-poor was given interest-free loans , government obliged banks to allocate part of credit loans to the poor farmers and entrepreneurs. Private organizations also volunteered to help government in providing financial aid to the poor Because of this effort, 3 million people have been helped, 600 000 agricultural jobs were created in rural areas, government provided jobs through job placement schemes to 1.7 million people who were previously unemployed. More people have incomes, able to afford basic necessities Poverty rates decreased in rural areas, standard of living of people increased However, there are some limitations to this effort. Poor people need greater market access to get more people to purchase their goods and services. Moreover, more volunteers need to be a part of microfinance programme to give loans to reach out to more enterprising poor, especially those living in areas that are difficult to reach Policies were introduced in Vietnam in 2009. With the effect of the recession, Vietnams economy encountered many difficulties. The government released some policies to provide financial assistance and create more jobs. The policies help the company to get a reduced interest (4%/year) when they borrow funds to enhance production, develop infrastructure and machines. They also give a loan with very low or without interest for poor families or labours with low incomes. They provide financial assistance for medium and small companies to sustain production, ensuring that they have money to pay for their employees. They reduce or exempt taxes for medium and small companies which are in difficult situation.Moreover, they adjust importing taxes for some ingredient goods that companies in the country cannot produce. The policies were effective as they ensure not only the stability of the national economy but also the living standards for the citizens. Help companies to overcome difficulties during the recession, stimulate production.

Provide a good condition for small companies and families to sustain their business and develop in a difficult time. Reduced the cost of products, increased the sales Reduced interest => companies and customers can have better access to the funds, thus increase the companys competing ability, expand the consumer market and foster economic development In 2009, VNs economy continued to grow for 8 months, total sales increased by 19.9%, export turn-over up to 12.4 billion USD, increased by 3.4% as compared to the previous year. Because of the recession, some companies have to reduce production and cut down labour. However, with the help of these policies, VN limited the unemployment rate, and at the same time created more jobs. During the year, the country government has provided jobs for 194.4 thousands labourers. 91.2 thousands new places were also created.


However, this assistance only acts as an instant help for companies to overcome difficulties and continue to develop production. The government cannot always provide continuous financial assistance due to the lack of national funds. If companies over-rely on the assistance, they would find it really hard to sustain without the funds from the government.





In India,a scheme namely self-employment of educated unemployed was initiated in 1983. Under this scheme, loans up to $25,000 (Rupees) are given to those educated unemployed who have no other financial resources. This scheme is enforced by District Industries Centres. Government will give 25 percent as subsidy of the loans given by the banks under this scheme. Effectiveness:

The scheme took off because of the ideal seed money to tide over the process of acquiring a business-> initial income generated can then supplement family income. During 1983-92, about 1.52 million beneficiaries had been sanctioned loans amounting to Rs. 3004 crore (ten million), and started small scale businesses.


The amount of investment into scheme was insufficient and youths had limited knowledge of how to manage their finances and poor planning-> mis-usage of the money given may arise-> hence their businesses failed.

Job creation is also one of the national efforts to increase the economic development. Indonesia planned to vastly increase employment to make Indonesia from 17th largest economy in the world to the

biggest 10th economies by 2025. As of today $ 63.72 billion of government cash have been earmarked as investment, supplemented by ($ 97.93 billion) from state firms. 17 projects in the works are worth Rp 190 trillion including hydroelectric and solar power plants, oil palm development, steel mill, improved infrastructure, and mining project, opened vast employment opportunities for the citizens.

Though much capital has been invested, there are a few limitation that would hinder its successfulness. For example, it takes a long time for the government to give the green light for the various plans, hence initiation time is delayed and jobs are not created. There is conflict in regional government. Some regions are more developed than the others; their uneven development is hard to implement a policy to cater to the different regions. The Corruption in the government implies that the seed money would channelled into governors pockets may result in insufficient funds left. Therefore, plans cannot take off and jobs are not created. In India, The Nehru Rozgar Yojana (NRY) scheme comprised of three sub schemes each covering different job scopes. The SUME ( Scheme of Urban Micro Enterprises) was launched to equip workers with skills to set up small scale businesses. Similarly, SUWE (Scheme of Urban Wage Employment) provided wage employment through selling of basic amenities. They both had 100% success due to versatility of training skills and high demand for basic amenities respectively.

However, the third aspect, SHSU (Scheme of Housing and Shelter Upgrade) only had 49% success due to limit to how much upgrade can be done. The cost of upgrade may be too great and the housing developers would not want to bear such cost, hence limited upgrade was done. Thus hindering the progress of SHSU. In China, The public employment service agencies provide free job placement and employment guidance to the urban unemployed and rural migrant workers, such as one stop services of employment consultancy, job placement, social insurance coverage and vocational skill training to the laid-offs and unemployed. They provided convenient information services for job seekers and enterprises so as to enhance the efficiency in matching supply and demand for labour market. Hence it had major success in creating 9.94 million new jobs by the end of September, 2011. It exceeded the expected number of new jobs China had planned to achieve by the end of 2011. China managed to outstandingly reduce poverty, raising hundreds of millions people out of poverty in a considerably short span of time. Poverty rate rapidly declined by 60% in 25 years. In some countries, the governments attach great importance to the issue of employment and takes employment as the first priority of peoples livelihood and as the top strategy for ensuring the stability of their society. Therefore, policies have been implemented to improve employment qualifications, including Establishing and Improving the Training System. Training systems aim to enhance the laborers capacity to be employed, start up their own businesses and adapt to job transfer.

For instance, in Philippines, the poor are given proper training and advice to run businesses productively and effectively by volunteers. They are hence able to work in the informal sector consisting of small family run businesses which are labor-intensive and require little skills. Another example would be National Vocational Training System of the Chinese government. In 2000, the framework of the Employment Permit System was primarily set up. Since 2002, the state began carrying a widespread skill-enhancement action by implementing a Plan for Strengthening Vocational Training to Improve Employment Qualifications and a National Project for Training Highly Skilled Personnel; a program for training 500,000 new technicians in three years was also launched. Training Systems have various advantages. When the unemployed are trained properly, businesses are sustained. More people are getting employed as they possess the required skills and knowledge to help or run businesses. Unemployment is reduced, hence, poverty rate is decreased in rural areas. As a result, people are able to improve their living standards. However, Training Systems also have their limitations. Skills that the poor receive still need to be more diversified in order to narrow income gap between rich and poor, for example, the people need to have a variety of other jobs that are not only within the informal sector such as agriculture. People who live in areas that are rural make it difficult for volunteers to reach them to give them training. Their settlements could be dispersed, which requires a lot of effort for the volunteers to find them as they live in more secluded areas. Another effort made by national government to increase development by Job creation is to focus on certain areas of economic resources. In Angola, the national government make efforts to create more jobs is by focusing on oil production. The oil prices in Angola have been raised, allowing more income and revenue to flow into the country as other countries buys oil from Angola. Oil production has also vastly increased. Angola pumps between 1.5 million and 2 million barrels of oil each day, more than any other African country besides Nigeria. This ensures that enough of oil is produced to be able to sell oil to many other countries. Angola has also relied on China, with China sending about 3000 workers to Angola while Angola borrowed up to $12 billion from China since China is Angolas biggest supplier of oil. More workers would be able to help out in the production of oil. Not only does these efforts create more jobs for Angolas people, but also Angolas government is awashed in cash. Government is receiving two and a half times as much money today as it did three years ago. The money has been used as part of post-war construction to rebuild the countrys ruined infrastructure: rebuild 2,400 miles of roads, renovate four airports and build 430 miles of new rail track. The people would have better transport system than before. Economy grew by 24 percent, one of the worlds fastest rates. A sign of the boost in economy: the sales of luxury cars are booming. More people have sufficient money to lead a higher standard of living than they did before. Angola has been recognized as a major oil producer after participating in the Organization of Petroleum Exporting Countries. Other countries would flock to buy oil from Angola if they need to.

However, there are some limitations in these efforts. One of them is corruption by the government officials. A portion of the money earned from oil production could have ended up in the government officials hands instead of distributing out to the population. Government officials have admitted that some money have been used to build up private businesses for themselves while holding government positions. Moreover, some ordinary Angolans still remain desperately poor due to corruption by government officials although government officials insisted that the poverty rate is dropping. However, two in three Angolans still live on $2 or less a day, same as when the civil ended in 2002. (NY TIMES) Another country that takes chances on their own resources is Nigeria. Nigers government focused on several resources to be exploited. Niger is one of the worlds top uranium exporters, but 80% of the population is employed in subsistence agriculture. The country has consistently ranked at the bottom of the UN Human Development Index, rising from the bottom of the index in 2009 to number 167 of 169 countries in 2010. Traditional subsistence farming, herding, small trading, seasonal migration, and informal markets dominate an economy that generates few formal sector jobs. Fourteen percent of Niger's GDP is generated by livestock production--camels, goats, sheep, and cattle. Fifteen percent of Niger's land is arable, found mainly along its southern border with Nigeria. Rainfall varies, and when insufficient, Niger has difficulty feeding its population and must rely on grain purchases and food aid to meet food requirements. Nigers economic growth rates are closely linked to rainfall and fluctuate widely in connection with agricultural output. In 2010, the economy showed strong growth (8% growth rate in real GDP, up from -1.2% in the drought year of 2009). In 2009, 64% of export earnings were from uranium, 20.5% were from livestock, and about 6% from other agriculture, most notably onions. Actual livestock exports far exceed official statistics, which often do not include large herds of animals that are simply walked across the border to markets in Nigeria. Some hides and skins are exported, and some are used for handicrafts. Niger has exploitable deposits of gold in the region between the Niger River and the border with Burkina Faso. Nigers sole commercial gold mine, Samira Hill, opened in 2004 under a joint venture known as SML between a Canadian company--Societe SEMAFO Inc. (80%) and the Government of Niger (20%). Gold prices have been very strong in recent years, but income from the Samira mine was limited until April 2009, because a percentage of the mines production had been committed to forward sales at a lower price when the mine was initially financed. Now that this commitment has been fulfilled, Samiras production is sold at market price, and SML was recently awarded an additional concession that will extend the life of the mine. Niger also has oil potential. China National Petroleum Company is exploiting the Agadem block and a refinery north of Zinder, which was expected to be operational by late July 2011. The parastatal SONICHAR (Societe Nigerienne de Charbon) in Tchirozerine (north of Agadez) extracts coal from an open pit and fuels an electricity-generating plant that supplies energy to the uranium mines. There are

additional low-quality coal deposits southwest of the current mines. Substantial deposits of phosphates, iron, limestone, and gypsum also have been found in Niger. The new government actively seeks foreign private investment and considers it key to restoring economic growth and development. With the assistance of the United Nations Development Program (UNDP) and international financial institutions, it plans a concerted effort to revitalize the private sector. Niger has attracted significant investment over the years, in uranium, the petroleum sector, cellular communications, and, most recently, in a dam and a cement factory. These efforts thus recruit more people as skilled labour. However, poor legal and physical infrastructure still hamper investment. (

There is also another way for other country to provide financial assistance, which is through subsidy. Some government gives subsidy in the form of money while the others might give it in the form of food or even crops. In Indonesia, government provide subsidy for the needy citizen. It is called Bantuan Langsung Tunai (BLT) or Direct Cash Assistance. BLT was launched in 10 September 2005. It is a short term compensation program which aim to keep standard of living of poor families stable when there are increase in oil price. Each poor family is given Rp 300,000 (US$30) per month. It aims to decrease the poverty rate in Indonesia and to keep stability within the government (keeping range of uneven development small) BLT is successful in some extent that 43.49% of poor families in east Java, Indonesia has change its status; they are no longer poor families, from 2005 to September 2006. Furthermore, overall poverty percentage decreased 7% from 2006 2009.

Nonetheless, it has certain limitations. There is corruption within the government (only 99.2% of subsidy reaches the needy families). The family will also be complacent with the subsidy given. A lot of family keeps their status as poor so that they will still be subsidized. This will lead to low morale of citizens; they depend on this subsidy to live instead of depend on this subsidy to make some business which can support themselves in the future. Moreover, this money will be more efficiently used is government invest this money in other things such as channeling the money to countrys development by building factories that can open more employment opportunities. Unstable economic condition also contributes to its ineffectiveness. Unstable economic condition raise the price of primary product, thus make the subsidy insufficient. Lastly, as there is uneven development within the country, there will be error in data input. Some of the cities in Indonesia are less developed. Their system is not advanced enough to get accurate data. As a result, government does not know the exact number of poor families to be helped.

Indonesias program of subsidy, BLT has more limitations than its efficiency. We can say that overall, this program is not successful. ( Another country that gives subsidy to its citizen is Ethiopia. They adopt a policy called Productive Safety Net Program (PSNP). It was launched in 2005. It aimed to shift chronically food-insecure rural people from recurrent emergency food aid to more secure and predictable, and largely cash-based, form of social protection. They also aim to provide household with enough income (cash/food) to meet their food gap and thereby protect their household assets from depletion. Lastly, they hope that the program can enhance livelihood to the people in Ethiopia. In conclusion, their aims are: Protection (against hunger) >> Prevention (of imporvishment) >> Promotion (of livelihood). PSNP is successful in some extent. They enable 8.29 million chronically food insecure people to attain food security. They also covered 8 regions of drought-prone areas, thus giving them help such as mercy corps. Mercy corps is currently helping 150,000 people through programs like emergency food distributions, clean water delivery, and cash-for work activities in this area. However, there are certain drawbacks from the program. The annual end-of-period inflation, which stood at 16.5% in February 2011, increased to 39.2% in July 2011. Food inflation almost quadrupled going from 12.8% to 47.7%. Because of these inflations, subsidy from the government become insufficient to meet their needs. Cambodias Government-Private Sector Forum (G-PSF), established at the initiative of the Royal Government of Cambodia in 1999, is a mechanism for public/private sector consultation on investment climate issues ranging from long range policy to day-to-day operations. The G-PSF also gives Government a channel for getting private sector feedback on draft policies, laws and regulations Its objective: -Discuss and exchange ideas with private sector dialogue partners to identify measures that resolve complaints in individual sectors in a timely manner, and propose these solutions to the authorities concerned. -Identify, in consultation with private sector dialogue partners, strategic initiatives for supporting and encouraging existing companies as well as attracting investors that will bring new businesses to Cambodia. -Provide a regular report to the Head of the Royal Government on the activities and direction for follow-up work, which is required for continuous implementation so that the Head of the Royal Government can propose solutions at the twice-yearly plenary sessions. -Address other problems as necessary within the framework of individual sector meetings and as mandated by the Royal Government.

Effectiveness By having a regular report on the business activities of companies in the country, the government can have a detailed understanding of the economic situation in the country and make necessary and appropriate policies, such as providing financial assistance, to help fostering the development. Thus, more jobs will be created for people. Limitations

Lack of advocacy skills: Lack of business association capacity may also be reflected in the difficulties associations have in clearly articulating problems and finding the statistics and other evidence needed to explain problems and proposed solutions. Because business associations can only afford to hire junior staff who has limited education and training, staff will likely not have the capacity to prepare effective position papers. The key risk here is that dialogue becomes an empty egg with little impact on the reform. y%20-%20Cambodia.pdf