8
for particular commodities. For instance, the
government of the US facilitates Apple to
manufacture mobile devices by flexible policies,
human and financial resources; the government
of China paves the way for local enterprises of
information technology by restricting global large
corps from penetrating into domestic market.
Both the US and China want to develop domestic
enterprises but the way they perform is different.
A tectonic government identifies its major
industries to increase national competitive
advantages and turn them to drives of economic
growth. For instance, since 1960s, the government
of Korea identified its key industry was chemical
industry. For Japan, the government moved its
focus to heavy industry such as steel, machinery
and chemical. Such move created new competitive
advantages for Japan and created miraculous
development phenomenon.
- In terms of implementing economic transformation:
On the basis of implementing 2 above-mentioned
roles, government plays the third role to implement
economic transformation. National competitive
advantages are determined based on the products
of key industries. The activities of innovation,
creativity in such industries, as a result, inspires
other industries of the society. The consequent
activities chain, therefore, makes the changes
in economic structure and renovation of growth
model.
- In terms of social transformation:
when the goals
of economic growth achieved, tectonic government
continues to implement other social targets to turn
the present state of society to an advanced state.
TECTONIC ROLE OF THE STATE
IN STRENGTHENING ECONOMIC GROWTH
ASSOC. PROF. BUI VAN HUYEN, PhD. , DO TAT CUONG, PhD. –
Institute of Economics (Ho Chi Minh National Institute for Politics)*
There has been a compromise between scientists and policy makers that the State plays the tectonic role
in strengthening economic growth by improving institutions, renovating economic management methods
and stabilizing macroeconomy. On the basis of analyzing achievements and limitations in the tetonic role
of the State, the article recommends policy implications to improve future economy of Vietnam.
Keywords: Macroeconomics, tectonic State, economics, finance, growth
Received: December 22
nd
, 2017
Revised: January 4
th
, 2018
Accepted for publication: January 5
th
, 2018
Tectonic Government
and the issue of economic growth
Tectonic role of the government in strengthening
economic growth is implemented by means of a
rational policies system. The rational economic
policiesarebuiltbasedonpracticalandexperimental
evidence suitable with the availability of resources.
Referencingamixedtableofdimensions,variable
and indicators illustrating the correlation between
tectonic government and economic growth (Table
1). It is clear that tectonic government conducts
economic growth by 4 aspects: (i) vision and
establishment of targets; (ii) creating competitive
advantages; (iii) economic transformation; (iv)
social transformation. In details:
- In terms of establishing vision and targets of
economic growth of tectonic government:
Tectonic
government, in nature state, is a government
targeted at economic growth by establishing long-
term perspective and medium-term or short-term
goals. A tectonic government visualizes based on
comprehending economic targets and indicators in
medium-and short-term rather than the excessive
capacity of the economy. A tectonic government
establishes economic growth targets based on
verifiable qualitative criteria and measurable
indicators while applying economic policies.
- In terms of creating competitive advantages of
tectonic government:
The government creates and
nurses the competitive advantages generated by
firms to improve national competitive advantages
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