ECON
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However some economies such as india china and dubai

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income inequality problem. However, some economies, such as India, China, and Dubai are some of the proven cases on how SMEs can be used to boost economic growth and improve living standards of the middle and lower-income households. Dubai is one of the Emirates in the Middle East, whose economy was termed as unstable due to its overreliance on petroleum products. Up the late 1990s, petroleum products amounted to 87% of Dubai’s budget and 90% of the exports. In this case, the country relied on petroleum exports, which made it experience high inflation rates due to the fluctuation of oil prices in the global market. Since the government has limited influence on the oil prices, the country’s currency sustained relatively low value compared to the U.S. dollar. As a result, the Middle East’s bargaining power in the global economy declined. To curb the economic constraint, Middle East began a diversification program, which aimed at investing in the private sector. One of the metrics used to enhance a swift transformation was internationalization of Dubai by allowing foreign and local investors to trade in Dubai with low legal and political regulations. The fundamental objective of reducing trade regulations in Dubai was to promote an entrepreneurial culture and sensitize the Middle East to develop a business-oriented perception. In the long-term, Dubai managed to increase the number of SMEs and strengthen the value of the Riyal in the global market. The implications of fluctuating oil prices in the country reduced; hence, the citizens experience high living standards. More job opportunities were also created, which, in turn, aided in resolving the low per capita income constraint. Currently, Dubai has one of the most promising economies among the developing countries. Apart from Dubai’s case, India and China were suffered from high poverty rates in the late 20th century. Markedly, one of the main causes of increased poverty rates was high levels of unemployment, low GDP volumes, and high trade deficit. The poverty constraint was because of
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ROLE OF SMES IN PROMOTING SOCIAL ECONOMIC GROWTH 7 lack of enough interments in the economy. As a result, China designed an export-oriented economic model, which specialized in the export manufacturing category. To enhance a swift transformation, the Chinese government privatized a majority of the industries to enable the growth of SMEs to fill the economic gap. In the long-term, the number of SMEs in the country increased at a considerably high rate, making the country to experience a high economic growth rate. The poverty levels in the nation declined because employment opportunities increased. India, on the other hand, used friendly trade policies and low-interest rates to promote an entrepreneurial culture. Furthermore, Indian society was sensitized to start and run small businesses to enable them to increase their revenue. Through these metrics, the country managed to reduce the unemployment rates and promote high living standards. The overreliance on industrial employment declined, as the income distribution disparity was reduced.
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