The seeing the development in other spheres of

                             The Big
B-Preliminary round

                               Ace Intra School 2017-18

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TEAM-1.
Simran  Jaswal 11-F

2.
Harshita Madan 11-F

         

                                    VENEZUELA CRISES
ANS1.Being the newly appointed president of Venezuela
I would take the following  steps and
regulate significant policies to make my country great again and ensure that
the country  uses its whole potential to
get back on the right track.

1.FOREIGN
DIREVT  INVESTMENT (LABOUR INTENSIVE
INDUSTRIES)- The country at present is facing severe economic problems
and the  entrepreneurs along with the
private sector stand at a very low position. Foreign direct investment in
capital intensive industries will lead to more utilisation of natural resources
.

Hence allowing FDI in labour intensive units
will give us the following advantage

Tackle the major problem of unemployment
and poverty  that has raised to an
unexpected level .Employment opportunities will prove to be significant as it
will help in breaking down the vicious cycle of poverty and will bring
stability in income of people.

Our country’s private sector after
seeing the development in other spheres of economy  will surely try to make up its mind in
entering the market.

THE CAPITAL INTENSIVE INDUSTRIES OF
THE NATION of the nation are at present not in the
position to compete with huge MULTINATIONAL COMPANIES  with giant infrastructure and financial
resources. Hence a time of  20 years  will be given 
to the country’s large scale industries to redevelop itself and bring
out its latent potential.

FII(
foreign institutional investors) such as merchant bankers  , mutual funds and pension funds will be
allowed to invest in Venezuela financial market

2.EMPOWERING
AGRICULTURE   AND  OTHER SECTORS OF THE ECONOMY-

 

The primary sector is at very bad
condition .The revenue of the govt will be used to make investment in the
agriculture (only on necessary crops)sector so that the population can tackle
food shortage and get basic nutrition  diet that is required by a common person.

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3.to
make good foreign relations-

As in the current scenario, prime
minister of India Narendra modi is doing his level best to strengthen the
foreign relations that indeed is an essential step for any country ,that want
to be proficient in the globalised world ,following the same strategy Venezuela
will make  alliance will developed
countries and ask them to share their technology, innovation and technical know
how with Venezuela by investing in Venezuelan market

Various training programmes can be conducted
by both the nations like technical and expertise exchanges ,EXCHANGING  IT knowledge with industry, universities
,research and development organisations and small and medium enterprises.

 

4.enhance
tourism sector-

.Venezuela is among the top 20 countries
in terms of endemism and is one of the most 10 unique bio diverse country in
the world .Venezuela’s is biodiversity is extremely rich and vast and consists
of Andes mountains, Amazon basin rainforest , Amazon dolphins ,jaguar ,capybara,
rodents and much more .Intensifying this sector will eventually result in more
revenue collection ,which in turn can be used to tackle the debt problem of the
country

this sector can provide employment
opportunities to many people and will certainly help in combating poverty and
unemployment related issues.

5.FORMULATING   FOLLOWING  
ECONOMIC   POLICIY

VENEZUELA  ENREPRENEAURS 
SCHEME

The govt will sanction loan to 400 start
ups at 10 percent interest p.a. The start ups need not to pay the interest in
first three years of their functioning but will have to pay accumulated
interest at the beginning of the fourth year But the condition is the start ups
have to invest 20 percent of their profits in public deposits, securities etc

The aim of the policy is to reduce liquidity
in the market(measure to control inflation) by providing significant financial
assistance to private sector.

JOINT
COLLABORATION SCHEME-

Any foreign labour intensive industry
(ssi)can allign with Venezuelan private sector industries. The govt will reduce
the tax upto 50 percent and can take advantage of special economic zone .But
the Venezuelan ind. must have a stake of atleast 50 percent in the
collaboration.

The aim of the sector is to strengthen
private sector unit of Venezuela so that through the joint collaboration they
can learn with financial expertise ,technical managers ,and can acquire
professional and mechanical skills from these well established foreign multi-
national companies

6.CONTROL
HYPERINFLATION

The printing of currency will be stand
still for sometime in order to reduce hyperinflation.

7.MANAGING  OIL 
EXPORT

Instead of exporting oil to developed
countries Venezuela will export it to developing countries of the world.
Because countries like USA , china will require oil in large quantities with
more demand which Venezuela cannot afford. The developing countries like india,
Argentina ,Chad will till the date are  running on conventional resources .They cannot
run on renewable resources nor think of majorly running on such resources at
least for 40 years. Hence oil is fundamental key of their livlihood and they will
surely collaborate with Venezuela.

Venezuela will export oil to such
countries which lack in something like india employment ,so that both the
country can mutually cooperate with each other.

Venezuela will export oil to such
countries if required at even cheaper rates.

8.FOSTER
RELATION WITH DEVELOPING COUNTRIES

The aim is not to increase revenue but
to form an association with such countries which will intensify our relation
and provide aid and backbone to Venezuela at this severe point of time. Such
countries will export excess of their produce to us at nominal rates because of
robust and deemed relations

This will help us to tackle problems of
food shortage and will significantly help Venezuela to empower itself and
control the present crisis

 

 

 

ANS2
If 
I am Juan Vincent Gomez, President of Venezuela in 1922; upon
discovering a huge oil well I will go with the advice of those advisers who are
sceptical about the idea of selling the oil blindly and think that doing so
will do more harm than good.

To manage the huge amount of natural
resource which could prove as a major boon to the country,  I will –

·       
Utilise the huge oil
discovered properly by exporting only managed amounts of oil so that the
natural resource could give the country benefit for a longer period of time
and also so that the huge supply does not overshoot the demand because in that
case, the prices will fall down.

           To manage the export, production
quotas will be implied  and strict
                           penalties will
also be there in case of violation.

Also, the country should not be solely
dependent upon oil and the other sectors should also be given equal importance.
The Sectors to be improved are-

·       
Agriculture sector-
Increase the agricultural production and productivity, by giving subsidies to
farmers. Increase its share in the GDP of the country so that the nation is
self sufficient and is also able to maintain buffer stock in case of an
emergency or food shortage. This will also provide employment opportunities.

·       
Secondary industries- Promotion
of manufacturing and agro based industries to reduce the amounts of imports,
promote private sectors and reduction in poverty by providing employment.

·       
Skill development and
education-Schools and other educational
institutions for higher education be established to promote education and
skills. It will lead to the formation of Human Capital.

·       
Health promotion-Hospitals,
both private and government be established for promotion of health, reduce
death rates and infant mortality rates and stop the spread of contagious
diseases. Health awareness be created.

·       
Development of
infrastructure-Like roads, railways, airlines,
bridges, highways, storage facilities, organised markets to promote
development.

·       
Promote
entrepreneurship-By providing incentives
to start new businesses and create ingenuity in the work force. It will promote
the private sector.

 

ANS3
yes

We
think that being natural resource rich is advantageous to countries in the
present scenario when transportation costs are decreasing and the world is
pushing towards globalisation. because-

INTRINSIC  INVESTMENT ADVANTAGE-

countries
that have surplus natural resources always get an inherent advantage of getting
income without bearing any significant risk or without investing in it. Being
natural resource rich help them to allocate their fund to other things, like
human capital formation, technological upgradation, diversification of public
companies.

Thus
a significant part of their treasury is not wasted in buying which can be used
at other areas of vital concern

INCREASED   REVENUE-

Most
of the underdeveloped , developing and developed nations are still dependent on
conventional energy resources. As long as their dependence continues, the
demand for natural resources will continue. Thus the sale is not a matter of concern
for the next 100 years. More export will increase the govt treasury, leading to
more growth and more funds

INCREASING   FOREIGN  
DIRECT   INVESTMENT

large scale multinational company  (that deal in metals ,steel, coal mines etc)will
surely expand their business to a place that is rich in natural resources

to increase their sales turnover and
their profit. Thus increased fdi will be a boon for  the host country, leading to more employment

RENEWABLE  TRADITION

The country after gaining lots of
treasury and financial resources can itself try to go green. Renewable energy
resources are more valuable and better than the conventional .The setting up
cost is high, and the natural resource rich country can bear it .so it can
itself go green and take the advantage of a sustainable environment.

FOREIGN
EXCHANGE RESERVES PROPERLY UTILISED

Many countries like India spend a large
part of their foreign exchange on purchasing oil ,petroleum products etc. They
end up purchasing oil which  is used for
consumption and does not lead to sharpening of knowledge

Natural resources rich countries  can instead spend their foreign exchange
reserves on technology exchange ,which will help in sharpen the minds ,creating
employment, boosting innovation etc

THINGS
TO BE NOTED

1.being natural resource rich doesn’t
mean that a country cannot have well developed human resource. The country can invest in human capital and take
the dual advantage.

2.one cannot be wholly dependent on any one segment of resources. The govt must
ensure that all the sectors are utilising their potential well and doing their
level best to increase GDP.

3.Proper
planning is a necessary step and a well plan along with a well planned
execution results in the success of any project.

4.natural resource rich countries
basically get income without any
investment. the govt should ensure that the benefit reaches to each and
every citizen, the poorest section
of the society must be given proper aid. the money should not get absorbed in corruption

5.susdtainable development is a
necessity in today’s environment. Over usage of natural resources can result in
excessive depletion leading to decimation of environment

6.natural resource rich countries rather
than having pride in their intrinsic resource must take up a challenge to
become an all rounder by focusing
immensely on

human resource , primary, secondary and
tertiary sector as well. this can help them in becoming master of all trades and moving a step further than the countries
that have invested in human resources.

 

 Venezuela where although it had the largest
oil reserves in the world, even more than Saudi Arabia, it is facing one of the
worst social and economic crises in the world. This is because it only depended
on its natural resource and neglected the development of human capital and
other sectors of the economy.

Thus, being natural resource rich is
advantageous only when there is proper management and resource utilisation.

Countries like Japan, Singapore, South
Korea, Hong Kong, Switzerland and many others who do not have much natural
resources but are successful economies as they have fully utilised their human
resource. countries like Venezuela, Kuwait, Saudi Arabia can move a step ahead
by investing in human resource and taking the dual advantage of both the
resources

As in the present scenario when
transportation costs are decreased and the world is moving towards
globalisation, being natural resource deficient is not that much of a problem,
provided  the human capital is well
developed. This is because the nations can then export technical knowledge,
know how, intellectual products to other natural resource rich countries and in
return get those natural resources. BUT if
a country  has natural resource and human
resource then the country can prove out to be a successful and powerful
economy.

 

 

ANS4
No.

Water is not wet, whereas, When it
touches other things or human beings, we say that those things and ourselves
have become wet. Wetness is simply a state of being drenched in water.

 

 

 

 

 

 

 

 

 

 

 

 

 

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