Individual Critical Reflection: Institutional Economics

The Role of Government in Supporting and Promoting Private Enterprises Student Name University Course Professor Name Date The Role of Government in Supporting and Promoting Private Enterprises The role of government in supporting and promoting private enterprises is a significant topic in institutional economics. The interconnection between Zhou Dongxu’s and Liu Ting’s art history and the political and local spheres’ roles as advocates for the private sector and facilitators of growth is highly intertwined. This reflection will focus on the writers’ primary concepts, comparing them to academic literature, revealing shortcomings, and presenting a personal perspective. Critical Reflection Agreements and Disagreements The principal articles are grounded on the importance of enriching private companies as the success of economic growth. Zhou Dongxu highlights the necessity of policy reforms on elite-driven governance. At the same time, Liu Ting emphasizes that Zhejiang’s private sector is an example of meeting the goals for prosperity. The policy aspect of the situation is equal for both authors, but their methods of acquiring positive or negative impact on the business environment cannot be the same. Dongxu (2023) is tasked with establishing a conducive atmosphere for effective administration while promoting fair market competition that deters exploitative behaviors. On the other hand, Liu (2023) matters most with the organic growth of the private economy in Zhejiang, in which he embraces the effective supportive policies that back up entrepreneurship and wealth creation. Both authors agree that the private sector should be well needed, but there is a disagreement between their beliefs of intervening in government versus the growth that occurs without the need for the private sector. Limitations and Gaps Dongxu’s (2023) article lacks concrete empirical evidence; the article concludes that supplemental knowledge can be integrated into effective policies and combat corruption. However, it does not present concrete examples or data to substantiate this claim. While pointing out governance issues is a priority, the article could be made better by providing examples through specific case studies or data to illustrate the importance of choosing a stable government compared to others. Besides that, the article can also discuss the global economic base and the region comparison in more detail to make it more complete. On the contrary, Liu’s (2023) article presents a convincing story of Zhejiang’s economic upward trend and perhaps avoids oversimplifying the forces behind “common prosperity.” However, the author’s emphasis on the role played by government policies in creating a favorable atmosphere does not consider the criticism and existing challenges the model faces. There is also an absence of analysis of the various socio-economic equilibrium mechanisms other than those involving government policies. Implications and Personal Opinion The two opposing views of Zhou Dongxu and Liu Ting outline several significant aspects of government support that eventually introduce a conducive environment for private businesses. The fact that Zhou switched attention to the policy reforms...