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Assessable Activity – Week Five
Discuss with your group the critical differences in approaches to assessing VfM between developed and transitioning economies, especially the relationship between quantitative and qualitative factors, and how these differences affect the ‘public interest’ and / or the delivery of ‘public value’
Value for money is the term which is related with the spending which is made for the thing which is subject to the worth or equivalent for the money that is being spent on that particular thing. Person spending on the things should have the evaluation of various aspects related with the thing on which the spending is being done with the effect of which a wise decision could be taken before making the spending. There are various transitional economies that are changing; these are the economies which are changing from the economies which are centrally planned to the market economic (Ascani, Crescenzi, & Iammarino, 2012). These economies want to grow and it becomes necessary for these economies to focus upon various aspects which could help in saving as much as money while developing the market. There are various economies present in the world that are developed transition economies as they have changed their central market into the free market and have understood the importance of value for the money concept.Economies indulging in transition create unemployment as with the help of survey it was found that the economies involved in transition leads to create unemployment because of privatisation in the economy (Bayar, 2015).
With the help of survey the quantitative data was formulated so as to present that there were various economies which were indulge in the transition process due to which unemployment in those countries was caused. It could see that Russia, Hungary, Poland and UK were some of the economies which faced unemployment at the time of transition(Bayar, 2015). There were various private sectors which entered into the market which cut the cost of labour so as to improve the efficiency of the labour. With the effect of privatisation competition among the companies in the market was created which gave rise to the bureaucracy and less income of the employees lead to loss in the job of the people.
Companies in the transition economies were indulge in the creating value for the money process which gave rise to inflation in those economies(Burger & Hawkesworth, 2011).
With the survey of it was founds that in 1990 and 1997 the economies which were indulge in the transition process cause inflation and the inflation rate was averaged around 20% and started falling simultaneously. There are various other aspects like lack of sophisticated legal system, moral hazards, inequality, lack of infrastructure and corruption were introduced which affect the economy of the country in a negative manner (Burger & Hawkesworth, 2011).
All these aspects leads to the reduction in the public interest and moral of people were getting affected with the effect of which they were feeling harassed in the market and the value which should be delivered to the target public was not being provided with the effect of which market was going down and economy of the country was getting affected.
- Ascani, A., Crescenzi, R., & Iammarino, S. (2012). Regional Economic Development: A Review. SEARCH WORKING PAPER , 1-10.
- Bayar, Y. (2015). Impact of Remittances on the Economic Growth in the Transitional Economies of the European Union. Economic Insights – Trends and Challenges , 1-10.
- Burger, P., & Hawkesworth, I. (2011). How To Attain Value for Money: Comparing PPP and Traditional Infrastructure Public Procurement. Journal on Budgeting , 3-26.
- Economic Online. (n.d.). Retrieved 04 02, 2016, from News Analysis Theory Comment: http://www.economicsonline.co.uk/Competitive_markets/Transition_economies.html