What can the government do to support production?

Feed: 1 - Date: 9/28/2019 - Views: 224

Creating an appropriate platform to finance productive activities is one of the main steps that policymakers can take to support national production and its boom.

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In line with this, the stock exchange and bankers are the two main factors of supporting production.
According to ISNA, "national production" and the necessity to support it are the keywords we have heard repeatedly, but how can the support of national production its boom be realized? By asking this question, the necessity of government's direct financial support and subsidy may come to mind, but the fact is that subsidies have no effects except to cause economical rent for some people.
One of the serious levers of the government to support manufacturers is the banks. If the bank can play their role as the financial source for manufacturers, the policymakers have fulfilled their duties to some extent for the producers. Of course, this fact should come after creating economic stability and security which is one of the main tasks of the government.
Another lever can boost the productive activities is to provide capital through the stock exchange. On the stock exchange, the manufacturers can have direct relations with investors and attract investment as much as the capacities and capabilities they have. In this sector, the Ministry of Economy, as the authority of the economic affairs, can create transparency as the only thing it can do, because the trust of economic activist can only be gained by creating transparency.
Apart from these, the unique ole of the government in facilitating rules and regulation can be ignored. The fact is that the more the government does not interfere in the economy by decreasing unnecessary laws and permits, the more smoothly the economic activities and eventually the dynamics of productive activity will be driven. 
The Minister of Economy has recently commented on the solutions to support production. Referring to the measures taken by the Ministry of Economy to support enterprises, Farhad Dejpasand stated, "The attempts of the Ministry are aimed at ensuring that the enterprises do not have problems with financing; in this concern, the Ministry of Economy Affairs, as the head of the Banks, has determined to prioritize the complementary facilities for all projects which are on the verge of operation."
Also emphasizing the importance of raising working capital for enterprises, he said, "We are streamlining and facilitating the rules and regulations on the stock Exchange so that more businesses will use the market capacity for financing and help producing enterprises with financing in this way."  
 
 

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