ECONOMIC POLICIES FOR NATION BUILDING

Nation Building ---is constructing and structuring a Nation (country) to a point that there is social harmony and economic growth. Economic development and social development of a nation is the process that precede the state of the wellbeing and quality of life of a nation ,region, local community or an individual being improved according to targeted goals and objectives .
There are diverse ways of achieving this, Economic policies are some of the major ways to attain Nation Building.

ECONOMIC POLICY
Economic policy of any nation is a powerful instrument designed to affect economic growth, it includes several laws and constituted engagements which covers the system for setting levels of taxation, government budgets, the money supply and interest rate as well as the labor market, national ownership and many other areas of government intervention into economy .
To maintain strong economy and attain nation building, there are quite number of these policies that need to be put in place by the quite of a nation.. And they includes…

Monetary policies
…Influencing the supply and demand for money through changing interest rates and the money supply. Monetary policy is usually managed by the Central Bank, though governments have oversight and may set an inflation target.

How To Make It Work..
Cutting interest rates to make borrowing cheaper and boost spending. The aim is to increase the rate of economic growth.
Raising interest rates to make borrowing more expensive and reduce spending and inflationary pressures.
Involves the creation of money by Central Bank and using it to buy bonds. The aim is to increase the money supply and reduce interest rates.
Policy that involves the creation of money and directly injecting the money into the economy.

Fiscal policy
Government changes to taxation and spending levels to influence aggregate demand.
Government spending cuts and/or tax rises. The aim is to reduce inflationary pressure or reduce the budget deficit. Could cause lower economic growth.

Supply sides policies
Policies aimed at increasing productivity and efficiency in the economy.

To Make It Work
Government reducing interference in the running of markets. For example
Privatization of state-owned assets
Deregulation of monopolies
Lower tax rates to increase incentives for workers and companies.

For government to intervene it should be on the basis of overcoming market failure. For example
Government spending on training and empowering.
Government investment in new broadband 5G infrastructure
Government provision of public goods,

Microeconomic policies
This includes tax, subsides, prices control, housing market, regulation of monopolies
To attain greater social efficiency the government can tax goods which have negative externalities. The aim of the policy is to make consumers and producers pay the social cost of the goods.
Government paying part of the cost of goods and commodity. This should reduce cost and encourage consumption.
Government intervention to avoid price fluctuations with the use of buying surplus to maintain a price floor and selling to prevent high prices.

Legal minimum price to try and maintain certain income for farmers, e.g. CAP price support or minimum price for demerit goods like alcohol.

Legal maximum price. For example to try and prevent excess prices for renting.
Policies to subtly shift consumer behavior, e.g. making it harder to buy cigarettes.

Labor market policies
Minimum wages – statutory legal minimum wage
Maximum working weeks
Legislation to prevent zero hour contracts
Free child care support
Progressive tax and benefit system to reduce poverty

Tariff/Trade policies
A government’s trade policy may be to seek free-trade deals and the reduction of tariffs or a government may pursue a form of protectionism (e.g. higher tariffs).
It could also involve joining trading blocks and areas of economic unions, such as the EU. This enables not just a reduction in tariffs but non-tariff barriers too.

In conclusion these and many more, when adopted and practiced to it full length, nation building and strong economy is in view.