role of govt

• What role do governments in developing countries play regarding the Savings Gap?

  They address the Savings Gap critically
• How can governments encourage higher domestic savings?

  By implementing supportive policies
• What can governments do to attract foreign investment?

  Implement policies that create a conducive environment
• What are some policies that governments may implement to address the Savings Gap?

  • Tax incentives for savings
  • Financial sector development
  • Improving political stability
  • Reducing corruption
  • Attracting foreign direct investment (FDI)
• What is one policy that can encourage savings?

  Tax incentives for savings
• Why is financial sector development important?

  It promotes access to credit and banking services
• How can improving political stability affect the Savings Gap?

  It can enhance investor confidence and savings
• What is the impact of reducing corruption on economic growth?

  It creates a more conducive environment for growth
• What does FDI stand for?

  Foreign Direct Investment
• How can initiatives to attract FDI help developing countries?

  By increasing capital and economic activity