Productivity of Lisavia free essay sample

As the economic advisor of Lisavia, I believe that the president first needs to understand the four main determinants of productivity, if he wants to increase productivity in his own country. The first is physical capital. This means that a country must possess structures, tools, equipment and machinery to efficiently produce the goods and services. Second, is human capital. Citizens should be properly trained and educated according to their respectable industry as to increase production. The third determinant is access to Natural Resources. The firms of Lisavia must have access to the valuable natural resources needed to increase productivity. And finally, Technological knowledge is important. Awareness and understanding of technology used to produce goods and services is key. Now let us first discuss how to implement proper physical capital. Lisavia needs the proper equipment and machinery to efficiently improve production. To do this, the president should possible offer decreased tariffs on the importation of machinery into his country. We will write a custom essay sample on Productivity of Lisavia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This will allow for firms outside of Lisavia, who produce the necessary machinery, to import these tools at a lower cost on trade, and in turn, the people of Lisavia will enjoy the benefits of high production. We need to consider that the population of Lisavia is not yet trained in the usage of such machinery and equipment. This means that the president should enact a government sanction training program, where the people of Lisavia can become educated and trained to use these new tools. As an incentive for people to participate in the training programs, the president should allow for a tax deductible on federal taxes for each citizen who participates. Also, to increase and maintain the productivity of its newly trained and educated citizens, the government of Lisavia should implement a universal healthcare system. This will provide the people of Lisavia with the access to medical necessities to stay healthy and productive. A portion of the paycheck to each citizen will be deducted in order to support this new government healthcare program, and this tax deduction will in turn benefit the citizens directly by keeping them healthy. The access to natural resources is also incredibly important to increase production. Industrial firms and others alike, need natural resources to stay productive. Energy, water, and oil are all paramount. The government could enact teams of workers to locate and extract these resources in order to benefit the production of the firms. A research and development team can also be a helping hand in improving operations all together. Along with the education and training of the citizens in terms of the new machinery and physical capital, they must also be aware of the technology used to increase productivity. The increase of production is highly dependent on the use of technology. Technological innovations help to create faster and more efficient production. Workers must also be trained in the use of these new technologies and the government should be open to free trade with countries that provide such technology. With all the newly implemented programs and developments, Lisavia will become highly productive and in turn will attract investors. The increase in production will make Lisavia a desirable country for foreign firms to relocate to and/or invest in. The increase in the investments in Lisavia will generate funds that will offset the cost of the original money spent to implement the programs that started it all. As everything comes full circle, Lisavia will be a thriving country with high production and many interested investors.