Article review of Finance and Growth; King, R. and Levine, R. Essay

Introduction For a long time, there has been a wide ranging debate among economists on the relationship between financial development and economic growth. A large number of them are of the opinion that finance is not a major factor in bringing about economic development. According to the article, these arguments are misplaced because all financial indicators are related in one way or the other to economic development. This is because financial growth or allocation has a direct impact on the distribution of capital throughout the economy. Moreover, the predestined elements of financial growth indicators largely forecast consecutive value of economic growth indicators (Robert & Ross, 1993, p. 729). Throughout the article, the authors use data that is consistent with their main argument; that financial services inspires economic development by increasing the rate of capital accumulation as well as by advancing the effectiveness   with which the economies utilize that capital. However, the authors do not associate any particular policies of financial sectors with long run economic growth. Instead, the article mainly associates the measures of executable government strategies to ensuing economic growth to make policy suggestions. At the onset, the article begins by examining the current relationship between financial growth, developments and their sources. Additionally, the article also scrutinizes the potency of the empirical link between the main indicators of the level of financial growth in the financial sector and the long-run tangible per capita GDP gains. Keeping all economic and other indicators constant, the authors state that they found a strong and partial connection between the average yearly rate of tangible per capita GDP growth and the average level of growth in the financial sector (Robert & Ross, 1993, p. 721). The article terms this study as a contemporaneous relationship because it looks at average growth rates and levels of financial growth over the same period of time. In investigating the relationship between financial and economic growth, the authors of the article first look into some of the major financial indicators used today. The first and second financial indicators are mainly used to establish the relative significance of particular financial institutions. These indicators reveal that commercial banks are more likely to offer risk sharing information compared to central banks (Robert & Ross, 1993, p. 718). On the other hand, the third and the fourth financial indicators are mainly used to investigate the overall domestic distribution of assets.   Any financial system that channels majority of its credit to state enterprises may not be helping the economy at all compared to one that allocates much of its credit to private enterprises. To support their arguments, the authors also present the readers with statistical summaries that prove the existence of a relationship between the four financial indicators and the overall economic growth. The article also presents an analysis of some countries that registered faster economic growth and those that registered slow economic growth (Robert & Ross, 1993, p.719). This analysis reveals the existence of a relationship between increased financial depth and the role played by financial institutions including central banks. More importantly, the analysis proves that countries with quicker rates of tangible capital accumulation and allocation appeared to have more developed monetary systems. On the basis of the theoretical study of endogenous technological transformations, the authors emphasize the idea of creative destruction. Through the application of the above mentioned endogenous technological developments, the authors are able to come up with a more absolute Schumpeterian vision of economic development through integrating major roles for financial intermediaries. For example, the selection and financing of insubstantial and substantial investments that result in innovation. The authors also use widespread regressions to measure the strength of a partial connection between economic growth indicators and the overall financial development. There are a number of ways through which the relationship between financial development and economic growth can be interpreted. However, the most widely accepted interpretation is that a strong relationship between financial and economic growth is a reflection of a correlation resulting from contemporaneous impacts of several shocks on economic and financial development. Much of the investigation carried out by the authors is largely meant to establish whether the prearranged element of the financial sector is related to development and its sources. The results of the investigations prove that the predetermined element of financial growth is a good forecaster of economic growth (Robert & Ross, 1993, p. 743). Moreover, the findings of the investigation reveal that financial growth forecasts both the rate of progress and the effectiveness with which economies distribute physical capital and the rate of physical capital accumulation. This is an indication that the relationship between economic development and financial growth is not merely contemporaneous. Instead, it shows that finance plays a key role in bringing about economic growth.    References Robert G. K. & Ross L.,(1993). Finance and Growth: Schumpeter Might be Right .The Quarterly Journal of Economics, 108(3) (Aug., 1993), pp. 717-7

Vietnam War and the Media

Write an essay that offers a critical examination of the concept of the ‘guilty media’ thesis in respect of any war of your choice Natasa Perdiou The Vietnam War was the first war that allowed uncensored media coverage resulting in images and accounts of horrific events that served to shape public opinion of the war like nothing that had been seen before. This portrayal by the media led to a separation between the press and the U. S. government, as much of what was reported defied the intentions of government policy.The media has fell blame by many for the result of the war, as it is widely believed that the war could not have been won under the scrutiny that came from the American people as a result of the media coverage. From the beginning of the Vietnam War to the present, the media has been an immeasurable factor in the perception of the war as the stories, true or false, that were reported gave the American people a face to an ugly war. The question over how much, i f any, the media had affected the outcome of the war has been an unrelenting one and is likely to continue for a long time to come.But one fact that cannot be doubted is that the dreadfulness of war entered the living rooms of Americans for the first time during the Vietnam War. For nearly a decade the American public could watch villages being destroyed, Vietnamese children burning to death, and American body bags being sent home. Although early coverage mainly supported U. S involvement in the war, television news dramatically changed its frame of the war after the Tet Offensive. Images of the U. S led massacre at My Lai dominated the television, yet the daily atrocities committed by North Vietnam and the Viet Cong rarely made the evening news.Moreover, the anti-war movement at home gained increasing media attention while the U. S soldier was forgotten in Vietnam. There was a stable build up of US military support activity in Vietnam during the period 1954 to 1965, but the first c ombat troops did not emerge until March 1965. During this period, media attention in the war was slow in building up, the first resident TV correspondent, NBC’s Garrick Utley, only arriving in late 1964. The media did build up and as the war became progressively more aggressive, journalists were sent out in increasing numbers.It would be fair to say that reporting of Vietnam increased approximately in proportion to the military presence. Prior to the involvement of ground troops in Vietnam, media coverage was concentrated to the political dimension of the war of stabilizing a non-communist regime in South Vietnam. The media at this time was committed to reporting news that reflected the common anti-communist stance, which was so † powerful in the early 60's that as long as the Vietnam War remained small, the administration had little trouble with the press† (Hallin 28). [4]By 1965 media coverage of Vietnam increased as the U. S. was becoming more part of an aggres sive war. Reporting began to shift from the intention of eradication the world of communism to the frustration of the men in the field. After the heavy use of ground troops, a shift in coverage occurred that â€Å"put much of the attention on the military situation† of the war. (Wyatt 133). [9] An increasing number of reports began to emerge about a lack of incentive and motivation on the part of the South Vietnamese troops. This brought to question the whole role of American interference, as the U.S. was proposed to support the South Vietnamese in their effort against the North, not the other way around. 1965 did not only mark the increase of ground troops into Vietnam, it also brought the emergence of television into the realm of media coverage, while the government was trying to maintain the idea that that the U. S was making encouraging progress, that the Vietnam War was necessary and that victory was not inevitable. While a small percentage of coverage was dedicated to w arfare and death, what was seen was not forgotten by the American people.The famous General William Westmoreland states that â€Å"[the coverage was] almost exclusively violent, miserable or controversial; guns firing, men falling, helicopters crashing, buildings toppling, huts burning, refugees fleeing, women wailing. A shot of a single building in ruins could give the impression of an entire town destroyed. † [7] So, in spite of continuous reports of victory, the public had a hard time coming to grips with what they saw their troops involved in Vietnam. Such coverage, along with the vivid images that emerge on T. V. ed to a serious rise in anti-war protest that was merely strengthened by the events of 1968. The Tet Offensive of 1968 marked the greatest conflict in beliefs of the United Stated government and the media. In January, North Vietnamese troops attacked the North cities of South Vietnam and the U. S. embassy in Saigon. The media and the television, however, portray ed the attack as a brutal defeat for the U. S, totally altering the outcome of the war at the very moment when government officials were publicly stating that victory in Vietnam was â€Å"just around the corner† (Wyatt 167)[8].The media covered all the events that immediately followed the Tet Offensive and the American public began wondering whether this war could be won. Don Oberdorfer a Washington reporter said that â€Å"there’s no doubt Tet was one of the biggest events in contemporary American history, within two months the, American body politically turned around on the war. And they were significantly influenced by events they saw on television†. [2] The Tet offensive was not totally unpredicted by the US military.In reality, the final result was a success, in military terms, for the US as the Vietnamese did undergo serious casualties and were driven back. However, the America media were not expectant of the attack and assumed that the military did not ei ther. Seeing the US embassy being undertaken by the Vietnamese presented the event as a defeat, ‘television fell prey to its chronic lust for drama. ’[1] After the Tet offensive the media began to attack the American involvement in Vietnam.It became clear to the American public that there was no clear way to win the war. Also, in reaction to public mood the media started sending damaging reports from the frontlines; they suggested that American troops lacked the specific training for the terrain and the type of warfare they were subjected to. They also gave the idea to people that the new rebellious generation and the great pressures of the war meant that many soldiers were drug abusers and carrying out atrocities. The media concentrated on civilian casualties and incidents such as the one in My Lai,These images on people’s televisions, left people in outrage, many had lost faith in the war and saw no military plan capable of wining such a war. They were outraged by their country’s conduct in the war and were set into a moral panic, seeing brutal scenes of civilian casualties committed by their own troops. The war was now seen as a shameful one and the government was seen to be at fault, forcing many young men to their death or to commit the atrocities they saw on their TV screens.The former Vietnam correspondent Robert Elegant of the Los Angeles times said that â€Å"for the first time in modern history the outcome of a war is seemed destined to be determined not on the battlefield but on the printed page and, above all, on the television screen† [3] The reporting of the actual war was deteriorating, just at the moment when the American military advisers hoped to push for victory. The North Vietnamese causalities following the Tet offensive had left them vulnerable and it was expected that an immediate attack to cut the Ho Chi Minh trail would permit the US troops the chance for total success.The news, though, was almost tota lly concentrating on the rising anti-war division in the US and stories of low morale and indiscipline among the US troops. The media were responsible for the American withdrawal from Vietnam because of the poor quality of reporting which lacked in validity in its facts about events and incidents in the war. It seems with all these misreports or blatant lies, which was meant to purposely damage the image of the American fighting forces in Vietnam public opinion of the war was very low in America. However the question is to what extent, if any, did this coverage change the outcome of the war?It would be reasonable to suggest that the Tet offensive was the most significant incident in shaping the outcome of the war. The media certainly reported the assault in the most inaccurate way for the US army. Activist young journalists, who had not in the past witness any real fighting were all of a sudden bounded by fighting supposed that the North Vietnamese had won a great victory. The US go vernment and army were to a degree guilty since they were aware the assault was going to happen and did not inform the media for reasons of national security.There was a succeeding recovery by the Americans and the media did not report this. Moreover, fragile leadership, mainly from Lyndon Johnson, did not motivate confidence in the war effort. Evidence does also indicate that there was no absolute public support for the war, even earlier than the negative coverage by media began. The reasons for the war, to ceased the spreading of communism (the Domino Theory), were not clearly demonstrated and maintained. Some Americans began to realise that the Communist threat was used as a scapegoat to hide imperialistic intentions.After the media’s massive blunder of reporting the Tet offensive as a major psychological defeat, and not having the sophistication, integrity or courage to admit their error opposition to war rose sharply. These innumerable domestic divisions gave the chance to high ranking members of Johnson’s administration to begin expressing their disapproval of Johnson’s actions to the media. This put pressure on government into engaging in to a more defensive military strategy that may have altered the likelihood of victory for the US.President Johnson was under fire from anti-war ‘doves’ and submitted to both ceasing the bombing of North Vietnam and beginning the Paris Peace talks. As expected, he also announced his decision not to stand for re-election. To make things worse, the war cost two-thousand-million dollars every month. The price of many goods in the United States began to rise. The value of the dollar began to drop. The result was inflation. Then economic activity slowed, and the result was recession. Opposition to the war and to the Administration's war policies led to bigger and bigger anti-war demonstrations. Johnson’s successor, Richard Nixon, in an effort to gain the public support back announced a plan of ‘Vietnamization’ of the war. This involved swapping US troops with more South Vietnamese troops, trained and armed by the US, after the first US troop withdrawals from Vietnam started in June 1969. Unluckily for Nixon, this did not discourage the anti-war protest who demonstrated in record numbers (250,000) in Washington in November 1969. [10] Images in television in every living room in America were showing the true dreadfulness of war for the first time.Reports of military failure (especially Tet) and slaughter such as the My Lai event shaped an air of scepticism. The media at home were also reporting the rising number and intensity of anti-war protest, legitimising opposition to war. A thing television was guilty of was only placing emphasis on the US troops. The stories that made the news were always about US troops in combat, US troops doing civil action, sometimes US troops in trouble (desertion, drugs, fragging). The allies, whose losses (280,000 South Vietnamese dead) far exceeded those of American troops, were invisible to the American crews.This gave the American public the feeling that the war was being waged mostly by the Americans and it was probably this, more than the almost exclusively violent coverage which gave the public a sense of disillusionment and war weariness. Additionally, media coverage of the war in Vietnam shook the faith of citizens at home. The media was the catalyst, which promoted the rising American anti-war movement. They were to a great degree accountable for the American troops’ withdrawal from Vietnam because of its poor quality of reporting which lacked in accuracy about the facts and events of the war.It is obvious that this kind of misinformation seriously destroyed both the image and the morale of the American soldier in Vietnam. There’s no wonder public opinion of the war was very low in America. But the truth is that the media only sunk a slowly sinking politically based ship, as public opinion of the war was already falling. The public were already starting to see through the government’s political talk that they had no definite military plan for victory or a justifiable reason to fight against a nation of infantrymen.The American media just dramatised the events to entirely destroy the very political principles which started the war. The media caused such a moral alarm in America at the time, people lost trust in its own government. The media left t America in such a chaos that its own government had to surrender to public opinion. So to what extend are the media guilty for the loss of the war? The media played a key role in American withdrawal from Vietnam. It might as well be proper to suggest that with American support for the war, America forces effort into the war may have been better and the outcome of the war may have been different.Nevertheless, the chief reality is that the America forces in Vietnam had no apparent military strategy to be s uccessful in its political mean. So consequently the media can not be solely guilty for the American withdrawal. Yet, the question is, would have American forces been withdraw from Vietnam with no media negative reporting of the war? The answer is that we will never know for sure. But we can undoubtedly say that Americans’ support for the war would have mostly remained high all over the war, the pressure on the American troops and government wouldn’t have appeared.Without all of the these factors the American troops may have had the time to adjust to the style of warfare and topography and resolve the behavioural and discipline troubles they were facing which highly attracted the media attention. This could mean that America would have continued the war in Vietnam, which may, but not definitely would have created a different outcome. Despite this, you still can’t say that the media is totally responsible for the withdrawal of American fighting forces in Vietnam. It was the longest war in American history which resulted in nearly 60,000 American deaths and an estimated 2 million Vietnamese deaths.The financial cost to the United States was just as deep. Even today, many Americans still ask whether the American effort in Vietnam was a sin, a blunder, a necessary war, or a noble cause, or an idealistic, if failed, effort to protect the South Vietnamese from totalitarian government. Nicholas Hopkinson’s statement is the one that probably best reflects the situation of the media in Vietnam: As public enthusiasm faded, reporting became more and more critical[†¦] but to single the media out as the decisive element in declining public opinion is incorrect.US opinion turned against the war because it was long unsuccessful, costly in terms of human life and expenditure. ’[6] Words: 2314 References Bibliography: 1. Braestrup, Peter. â€Å"The News Media and the War in Vietnam: Myths and Realities† 2. Don Oberdorfer, Tet! , S eptember 1, 1971 3. Elegant, Robert, ‘How to Lose a War', Encounter, 57, 2 (1981), 73 89 4. Hallin, Daniel C. , The Uncensored War: The Media and Vietnam. Los Angles: California University of California Press, 1986. 5. George Herring, America's Longest War: The United States in Vietnam, 1950-1975 (1986) . Nicholas Hopkinson, â€Å"War and the media’’ Wilton Paper 55 (London: HMSO, 1992): 6-7 7. Westmoreland, William C. A Soldier Reports (Garden City, N. Y. , Doubleday, 1976) 8. William M. Hammond, Public Affairs: The Military and the Media, 1962-1968 (1989) and Public Affairs: The Military and the Media, 1968-1973 (1996). 9. Wyatt, Clarence R. Paper Soldiers: The American Press and the Vietnam War. Chicago: University of Chicago Press, 1995. Internet sources : 10. www. nytimes. com/learning/general/onthisday/big/1115. html

Social Security College Essay Example | Topics and Well Written Essays - 4500 words

Social Security College - Essay Example Economic Security in America, para. 2). One of the first Americans to propose a system of economic security for U.S citizens was Thomas Payne in his 1795 writing titled "Agrarian Justice". It provided sums for citizens reaching the age of 21 and then a yearly payment to those reaching 50. Payne's idea was to pay for it by means of a property inheritance tax. In 1862, a Civil War pension program was enacted. "Following the Civil War, there were hundreds of thousands of widows and orphans, and hundreds of thousands of disabled veterans. In fact, immediately following the Civil War a much higher proportion of the population was disabled or survivors of deceased breadwinners than at any time in America's history. This led to the development of a generous pension program, with interesting similarities to later developments in Social Security" (DeWitt, sect. Civil War Pensions, para. 1). The program evolved, starting with benefits only to those disabled in combat or to their surviving families. As time passed, veterans disabled for any reason could receive payments. After that, aged veterans were added. Later, disability and old age benefits were extended to include family members. Former Confederate soldiers were not allowed any benefits. The last payments to surviving widows of Civil War veterans were made in 1999. With the advent of the Industrial Age a... State Old-Age Pensions, para.1). Prior to the passage of the original Social Security Act in 1935, thirty states had adopted some form of old-age pension plan. Only about 3% of the elderly were actually collecting benefits under the state plans. There was lack of implementation of the laws. The plans allowed insufficient funds. The elderly faced restrictive plan entry rules. The receipt of benefits was stigmatized as "welfare". Throughout the early 1930's and spurred by the Great Depression, movements arose that advocated a federal old-age pension system. Huey Long, Governor of Louisiana, proposed the "Share Our Wealth" plan in which the rich would pay for the poor and the aged. Francis Townsend devised the "Townsend Old-Age Revolving Pension Plan". It proposed that all upstanding citizens over 60 receive a monthly benefit that must be spent within the U.S. and within 30 days. There were numerous plans proposed from every direction during those years, some of them of questionable economic merit like Robert Noble's "Ham & Eggs" plan. It suggested that states should issue a currency to be called "scrip" to the unemployed and aged. The validity of the currency and by what economic backing it would be issued were very hazy indeed. Still, it was part of the social movement demanding the creation of a form of economic security for the masses. Most of the plans had benefits that were based on economic need. When Franklin Roosevelt became President in 1932, he changed the face of the economic security discussion from welfare to social insurance. He proposed "a work-related, contributory system in which workers would provide for their own future economic security through taxes paid while

Apple SWOT analysis Essay Example | Topics and Well Written Essays - 1000 words

Apple SWOT analysis - Essay Example Apple statement further elaborates that currently, the company still leads the industry though innovative technologies that have resulted in ward winning computers, operating systems, iLife, and other professional applications. Furthermore, the statement narrates that Apple is setting benchmarks in the global market though launching of IPod portable music, iTunes online store, video players, and has even managed a groundbreaking entrance in the phone market through iPhone. Besanko et al (2009) further elaborates that a mission statement should tell more about what an organization believes in and not what it makes. Telling prospective customers about what a one believes in touches a nerve in the target market, leading to customer loyalty. After development of an inspiring mission statement in the mind, it is essential to consider what makes the brand tick. Precisely, it is essential to come up with something that taps into the emotions of the target customers, something that comes fro m culture rather than from products. In other words, the mission statement should focus on the targeted market or markets and not the products offered. It should mention the long-term benefits that the buyers are going to enjoy (Besanko et al, 2009). For companies such as Apple, the internet, among other media, can be used to send this message to millions of potential customers after devising such a mission statement. It can be posted in the company’s website or on social sites such as FaceBook and Twitter. Evidently, Apple’s current mission statement focuses more on what this company makes rather than what it believes in. It focuses on the products it produces rather than the way buyers will benefit in the long-term. Though such an approach it the company is committed to developing quality products, it hardly touches the emotions of customers. Thus, it rarely contributes to the development of brand loyalty among prospective customers the company. An alternative missio n statement for Apple could detail that Apple Inc. is committed to engaging in sustainable practices in order to protect health of surrounding environment and of customers, workers, surrounding community and other stakeholders. Through the mission, the company has to show commitment in offering innovative technological products and services while protecting the health of all stakeholders and conserving resources for future generations. Moreover, Apple through the mission statement has to portray that it has to detail that it undertakes to continuously strive to improve our products to meet the ultimate needs and desires of our customers. This mission statement is better since it resonates with the long-term needs of the customers and hence, contributes to development of consumer loyalty (Besanko et al, 2009). Strengths To start with, Apple has gained market leadership in its industry through ability to come up with innovative and high quality products such as iPhone, iPod, iPad and Mac. IPod, for instance, holds the largest market share (66%) of digital music globally due to first mover advantages in the industry (Yoffie, 2012). Yoffie further explains that the nearest competitor accounts for only 9.9% of the global market share. Generally, Apple uses its innovativeness to

Vidkon Quisling Essay Example | Topics and Well Written Essays - 1750 words

Vidkon Quisling - Essay Example underlying dynamics of the rise of Nazi Germany, Hitler, and the occupation of Norway and other European countries during this pivotal period in the history of the involved countries, and Europe in general. The historical records identify Quisling as belonging in the halls of infamy, having been tagged as one of the most prominent traitors from the Second World War. He served as a puppet head of Norway during the Second World War, starting in 1942, with the Nazis propping up his rule, and as a representative of Nazi rule in the country. The elected head of Norway during this period was forced to go into exile in Great Britain, a social democrat in Johan Nygaardsvold, even as Quisling held on to power all the way to the end of the war. After that, with the Nazis defeated and driven out of the country, Quisling would go on to be tried and convicted of high treason, for which he was sentenced to death by firing squad. Quisling has, since that time become associated with the word traitor in the English language, and in other major European languages besides, attesting to the notoriety that the man gained in the historical records and the collective memory of all Europeans from that time onwards to the present. Among his many crimes, for which he was put to death, was collaboration with the Nazis in transporting the Jews in Norway during his time and bringing them to their death in the concentration camps. Prior to his ascension to power in Norway, he had already developed anti-Jewish sentiments, and among his other crimes included deposing the legally installed government as well as the Norwegian monarchy from power from 1942 onwards. In the 1930’s too, Quisling had already established a party that was allied with the Nazi cause in Norway, planting the seeds of his later collaboration with Hitler when he tried to seize power on behalf of Nazi Germany in 1940. Prior to this time Norway had been neutral, and this act and his collaboration with Nazi Germany eff ectively

Understanding Management accounting and Financial Management Essay

Understanding Management accounting and Financial Management - Essay Example Understanding Management accounting and Financial Management Considering the cash budget of Mowtown store, the management should be credited for the limited amount that is being paid as payroll as a wage. On the other hand, they have been getting the efficient services from the employees of the store. Another main factor that needs to be considered by the management is that they should look for the same policy reforms that affected their profit to rise with the highest percentage, i.e. the ending balance of February and May will indicate that. The managers must also look for reducing the costs such as shipping costs and maintenance costs. Budgeting and better management decision making and management control: An effective budgeting system will facilitate the management to make an effective decision making, which lead to the results that are expected by the management in the end of a period. Without a proper budgeting and forecasting system, the management cannot predict or decide what steps must be taken to expand or at least maintain the busi ness, what measures should be taken to reduce the overall costs, and how this framework must be established. An improper budgeting system will lead to a frustrated decision making process which might not be in favor of the management or a particular business.Budgets are prepared by the company operatives at various departmental levels; whereas the ‘master budget’ actually highlights the comprehensive financial plan for a particular period. The main objectives of preparing a budget which can also be termed as the advantages can be explained as follows: The budget must be prepared in order to direct the attention of the management to the future trends of the business, based on the results of the present trends and transactions. The budget actually affects the decision making process of the management and helps the system to reform the strategies and policies of the company. It allows the company management to critically analyze the activities running on in the business. T he proper budget allows the management to predict the problems and issues as well as key opportunities that can be controlled or covered in the coming period. The budgeting enables the managers to achieve their objectives as well as important goals of the company more efficiently. A budget will remind the management about what objectives they have set and how they have to carry out those. An effective budget also helps the management in terms of performance evaluation. A budget leads to the management making authorized actions. As mentioned above, an effective budget helps the management process. In terms of this process, the first thing that needs to be considered is the planning period, which should be future-oriented. The proper planning is totally dependent upon the statistics of business, i.e. current financial situation, and most authorized proof for that is given by the budget to the management officials. An effective budgeting will also state the condition regarding the goal s that have been set by the management in the beginning of the financial period, and whether the processes to meet these goals are being undertaken properly or not. This is

Impact of different variables on the economic growth of Sweden Dissertation

Impact of different variables on the economic growth of Sweden - Dissertation Example This paper has conducted a comprehensive research on finding out the effects of tax policies, employment and wages on the level of economic growth of Sweden. Using empirical data, it has been found that economic growth of Sweden does not depend on tax policy, employment status and wages. I. INTRODUCTION Sweden is a very economically significant country in the world. Although it is a very small country, it experiences significant economic growth. A very interesting thing to note about Swedish economy is the dispute over the character of the economic system of Sweden. Its economic system can not be characterized as a complete socialism or pure capitalism. In Sweden private sector dominates in all production areas. In fact, around ninety percent of total production in this country is produced in private sector. Looking at the dominance of private sector, it seems that there prevails full corporatism in Sweden. But the interesting thing is that majority of production in private sector, a round fifty percent, is exposed to state controls. Looking at this nature of Swedish economy, it is some times characterized as a system of welfare state socialism. Some, however, like to view this system as welfare state corporatism. ... Government undertakes various policies relating to tax, employment and wages. Tax accounts for a major place in fiscal policies. While in one hand, tax is an important source of revenue to the government, on the other hand it also reduces consumer purchasing power by reducing disposable income. Hence, changes in tax policy will definitely have effect on consumer purchasing behavior, and therefore, on aggregate demand of the economy and consequently on GDP of the country. Employment and economic growth has a strong association as well. In fact, there is a cyclical relationship between employment and economic growth where both are dependent on one another. While the level of employment of a country is dependent to a large extent on the level of economic growth, economic growth is also affected by various employment policies. Economic growth of a country is also related to wage level. While some think that a path of low wage can lead to economic growth, some others feel that a high wage economy is more efficient in achieving higher growth. Hence the level of growth of an economy is also dependent on wage policies taken by the government. In Sweden government has a significant role to play in controlling various economic operations. Hence, economic growth of Sweden can well be expected to be dependent on various economic policies undertaken by the government of the country. Hence, it can be assumed that governmental policies in the areas of taxes, employment and wages, produce some impact on economic growth. Aim and objectives It would be, therefore, quite interesting, to find out how tax policies, employment and wages affect economic growth of Sweden. Since the economy of Sweden can not be characterized as a nation which is fully controlled