Economic Goals and Values

Spain and Madagascar

How do economic goals impact one another?

When a country has economic security and predictability (knowing that goods and services will be available when needed), the country must have economic efficiency (making the most out of resources) to not waste products so then the products will be available when needed for security.

Spain- a developed country

Background

When Mariano Rajoy (pictured below) was elected in 2011, he introduced a budget deficit- reduction plan. The Spanish economy is now growing at a steady rate. Spain's high unemployment rate (24.7%) has declined slightly.
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How are the economic goals valued within Spain?

Economic Freedom Status: Moderately Free

Licensing requirements have been reduced to set up a business. Labor regulations remain flexible. This shows the goal for economic freedom by letting the entrepreneurs make choices about how to start their business.

Economic Efficiency: The government has rolled back renewable energy subsides, but it still maintains to be one the world's most generous fuel subsidy programs for fishing.

Economic Stability: Spain generally treats foreign and domestic investors equal. But, the banking sector is under strain, causing a fragile stability of the financial system.

Madagascar- A Less Developed Country

Background

In 2003, the president of Madagascar, Marc Ravalomanana (pictured below), increased the amount of protected land by three times in by 2008. Since Madagascar is rich in biodiversity, he understands the importance of his country's natural resources for the economy.
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How are the economic goals valued within Madagascar?

Economic Security and Predictability - The president established 15 new protected areas in Madagascar to protect their natural resources. This makes Madagascar have a safety net of natural resources to fall back on, which is good for trade because natural resources are not even around the world.

Economic Growth and Innovation- Madagascar has made an effort to improve people's health, so then they can work more productively. In 2003, the government released the "Ministry of Health and Family Planning". Reduce pressure on biodiversity- rich environments, to create a better future. Also, the government has promoted trust by addressing the immediate needs of community members. This all increases the standard of living, which will increase economic growth.

Economic Efficiency- The government puts an emphasis on protecting the environment, so they make the most out of their resources without waste by promoting the Madagascar Action Plan in 2007. Also, they reflect awareness to the public.