Topic: Identify Paradoxes in Market Economic Development in Developing Countries
The achievements of the market economy are obvious which we cannot deny, such as the growth rate of GDP and control of inflation, the number of newly established enterprises increasing, more jobs created for society .... While these are paradoxes in market economy and this is normal in the process or stages of economic development: The first (1) paradox: the poor buy lottery tickets quite a lot, but the fact that they feel the benefits not so much. The second (2) paradox: more schools and universities are built, but the number of students studying abroad is increasing and the number of students graduating from school who are insufficient and unqualified to meet employment quality/needs also increases, making the number of students studying at schools declined. The third (3) paradox: the rapid speed of urbanization, along with the development of science and technology, in the age of technology 4.0, children are increasingly attached to mobile, tablet, ipad, laptop… hence, far away from traditional games and playgrounds The fourth (4) paradox: businesses and people pay taxes to the budget, the role of the private economy is not small/moderate in promoting the market economy, but the number of monopoly industries is still many, together with public debt is still large and increasing, and capital/corporate governance efficiency in SOEs still exists as problems. The fifth (5) paradox: although the market is full of information and the supply of goods is plentiful, the demand is constantly increasing and not easy to satisfy, especially in the context of limited resources and sometimes to satisfy that demand and find suitable supplies, everyone, including the poor, needs to spend a significant amount of money on intermediaries and third brokers. The sixth (6) paradox: still exist closed economies and open economies (partially or fully open). Opening the market economy is accepting consequences such as dependence (at/to some extent) on economy and economic policy of big countries, but still necessary and forced to open and then, market it self have mechanism to solve The seventh (7) paradox: increased productivity is not commensurate with income, due to fluctuating market prices (for example, in the agricultural sector), even in some industries happen price bubbles. Money at the optimal level is the factor that stimulates productivity, but too much money is not necessarily stimulating the desired productivity. The eighth (8) paradox: green and clean environment protection, development of alternative energy for mineral energy, conservation of natural resources and environment is a matter of concern for most countries, however to what extent they are solved in practice , and the co-operation regional policy is still hindered by the disproportionate development of the market economies and the financial instruments (supply of credit in financial markets) or services between markets, without a proper connection between the nations. The ninth (9) paradox: developing new products, including intellectual products for the general needs of the world, is the right and rational direction, but there is no appropriate control mechanism for suppliers and publishers, as well as the distribution system in order to provide fair benefits to product owners The tenth (10) paradox: while we can not deny advantages of market economy, we need to reconsider black sides of it, for instance, it might go against preserving old cultural values or bring more viruses or diseases harming public healthcare. Seeing this in advance, we might connect cultural values with tourism in right direction, protected by a suitable monetary mechanism, with community healthcare need. For world diseases caused by unexpected viruses, in the context of each nation affected by other nations in a high integration world, stronger connections among regional and country governments, WHO and Ministries of Health , (not only Finance or Funds or each country own efforts), are crucial to serve public healthcare. The eleventh (11th) paradox: although there are many banks, credit funds, financial institutions operating in the market, loan shark and usury still find rooms to grow and have negative impacts via high interest rates, both in lending and raising capitals. However, usury also has positive impacts, for instance giving loans very fast to consumers and SMEs and so, overcome weakness of bank system. The twelve (12th) paradox: in past years, we canceled cooperatives model since the Soviet Union time but now, we can develop cooperatives model in a few areas such as agriculture, etc. in order to providing and supporting capitals to families and farmers, individuals that need capitals to grow with their own good production capability. This also helps to limit negative sides of usury. The thirteen (13th) paradox: the more the economy of a nation develop, the bigger the size of finanical groups and holding companies and the better brandname and capability. However, the allowance of transferring internal capital flows inside giant groups, even from their own banks, will be a threat for SMEs and thats what we see "big fishes attacking small ones". The forteenth (14th) paradox: the bank system is big with many commercial banks, domestic and foreign, but average income (per capita) for the poor in recent years still low around 3-4 m VND. It is time for poverty reduction with many effective policies in social security, bank capitals, microfinance, food security, etc. When our country perform strategies to become an economic tiger, average income per capita can be up to 10m VND. The fifteenth (15th) paradox: roles of commercial banks are very good, in terms of stimulating economic growth, but the fact that bank group monopoly created difficulties for overal society development and financing. Group monopoly is not really good phenonmenon, in my opinion. The sixteenth (16th) paradox: the number of research scholars, including but not limited to Doctors, Masters, Professors, etc. in developing nations such as Vietnam has been increasing over years, but still limited in old researches and old ideas, repeating previous studies, for socio-economic development, not really innovation and creativity. The seventeenth (17th) paradox: digital technology definitely will have positive aspects in emerging markets, and in some public areas such as environment protection, as it has been shown in developed markets with slow population growth. But with bigger population growth, emerging markets need to evaluate impacts of it on laborers and reduce unemployment or any other negtive aspects from technology revolution 4.0 and further. The eighteenth (18th) paradox: we can not deny important role of bank system for economic development, on the other hand, it also has weakness, not only in delivering mass services to every consumers, households, SMEs,...but also in sharing risks with end users, farmers in delivering derivatives instruments or securities. This is among reasons for slow derivatives market development in our country. The nineteenth (19th) paradox: China-US commerce war shows us that although the beginning relationship between 2 countries might be good, but a true and fair foreign affair will enable to make the relationship lasting forever. Also, leadership could be solved through arrangement of conflicts of interests. The twentieth (20th) paradox: our country achieved good results in economic, but still so many people run into big cities and capitals such as Hanoi, HCM city, Can Tho city, Da Nang city, Nha Trang city etc. and other cities and provinces surrounding these centres have just fewer people. To make it more balanced we need proper mechanisms, for instance, We need to allocate enough resources and some activities in supply chain or production to these nearby urban and rural areas. More investment in industrial zone, ex-import, tourism or medical services -hospitals are also good to create employment for students or workers. The twenty first (21st) paradox: comparing to some Asian countries, number of people can use , speak or write English still small while many Vietnamese scholars return hometown from studying abroad. This is main task for foreign language centres as well as more training materials and books in English needed. The twenty second (22nd) paradox: the more the economy and society developed, the more risks and risk management culture are needed in various fields: security, defense, tourism, medicine, and even post office. Somewhere in medical and post office services still exists unacceptable and unsatisfied officers in task enforcement, which create a need of public service culture. The twenty third (23rd) paradox: many people in our nation believe so much in old proverbs (ancient people saids or proverbs) and forgot that in our modern society ther is certain change. For instance, The relationship between Ethics and talent: In many industries such as medicine-pharma, people with talent and skills will be able to do the job, and virtue will follow, under foster and training. If we only have virtue without talent, we cannot cure diseases and save people and do great things. In army - defense - security: if you only have virtue no talent and skills, how can you protect the national border? Hence, if we read a proverb, it is better to consider and analyze whether that proverb just say true partially not totaly. The twenty fourth (24th) paradox: we are so proud of smart cities buildings and developed industrial growth and open economy, but in most of countries, both developed and developing, we see heavy diseases of modern society for example with corona, and there might be high prices in some products and services going together with covid 19. Also, we experienced humanities lessons and stories supporting among people in the covid pandemic, but beside there are still guys who try to earn money and charges more to give burden for public from the situation. Mobile virus testing and treatment teams around cities need to be set up to give quick responses and fast & full statistics report to kill the covid season. The twenty fifth (25th) paradox: in societies not paying attention to the values transferred across generations, they tend to highly value modern socio-economic values but forget that traditional values still keep undeniable values. For instance, in some societies, the roles and structure of families, traditional, has their own values, for example, the role of educated men on leading their family and children while roles of female in families are important. Last but not least, the development of economy and environment might be good but go together with negative aspects. US, China, Korea and Japan, etc. have been growing so fast and reaching top economies of the world, but diseases, corona, natural disasters, nuclear disaster, trade war, country war have killed life of many people. Also, the development of economy and infrastructure might not go parallel with the development of human, in term of risk management, governance and action leading. The concept of action leading and action leadership will be better described in my "Action leadership in Governance..." BOOK published worldwide via Amazon.com. Also, it seems that the growth of infrastructures (roads, highway, streets,..) is slower than that of traffic policeman here. This definitely causes some inconveniene for people and i am not satisfied with it at all. In near future our country need a mechanism to get rid of this unconvenience. Moreover, on the national highway 1A from Ho Chi Minh city - Vinh Loc Industrial zone to Dong Nai province and the highway from HCM city, even around district 1 & 3- to Phan Thiet (esp. in Dau Giay- even Bien Hoa-Long Khanh-Xuan Loc-Ham Tan-Ham Thuan Nam) we need a mechanism to eliminate more traffic policeman in Dong Nai province and allocate them to some other jobs. On the other hand, for convenient transportation, we need mechanisms to get rid of some truck drivers or their licenses(white truck and mini-vans and cars, as well as just a few limited cars no.77-Binh Dinh province or 72 Vung Tau city) if they drive at high speed in industrial zone and residential areas, then cause accidents and deaths for people. It can not be accepted in big cities. Then, Central Mental Hospital 2 in Bien Hoa city where receiving lots of complaints, still has unqualified people, doctors such as Dr Khanh at E area, guards which need to be eliminated soon by a proper mechanism for a more suitable program to serve society better.The content of the above analysis will contribute to a number of socio-economic policies of law makers, policy makers, regulators, central bankers and relevant Ministries.In developing countries, Socio-economic policies need to be considered to overcome these paradoxes: good economic growth is in demand and investment is a good signal for policies maintaining, nurturing and stimulating that demand reasonably (including a policy of loosening monetary policy in an appropriate period), establishing appropriate targets in economic development: economic growth targets, sustainability with environmental protection and building a high life expectancy society. Set goals for 20 years, 35 years and 50 years for the social economy and have a roadmap and implementation measures. It is impossible to have many key industries for a country, in the context of competition and comparative advantages, only need a few spearhead industries (such as tourism, restaurants, agriculture, silk and brocade garment- local attire ...) and with investment and development policies with appropriate vision. The policy is aimed at developing the level, knowledge and quality of the people to master the country's fortunes, absorbing science and technology and ready for entering business. On that basis, developing nations receive and respect foreign support. Multilateral diplomacy (foreign affair policy) with a reasonable focus will positively impact on economic growth. The policy of funding attracts foreign investment while ensuring competition, especially the protection and respect of the promotion of intellectual property. In my incoming macroeconomic book published in Vietnam, I will summarize fundamental principles of developing socialist market economy.Maintain growth time and growth rate in economic cycle, Set goals to maintain a balanced growth economy, and evaluate the opportunity costs for maintaining this model are matters to consider. Reducing excess and wastes, lowering inventories in many industries and areas to avoid poor quality inventories is another task towards stable and efficient growth.In addition, there is a need to measure and evaluate decision lag and effect lag for each economic policy to ensure effective enforcement. It is worth evaluating both the positive and negative aspects of fiscal policy, monetary easing policy, healthcare policy to stimulate the social economic position.Developing economy must have challenges. And challenges, inequality always exists in the market economy and labor market. In peacetime, how to keep the spirit of patriotism is still as high as in war is another aspect that macroeconomic policy makers need to pay attention to.