STRUCTURAL REFORMS 1

STRUCTURAL REFORMS IN TIMES OF RECESSION : HOW TO DESIGN APPROPRIATE POLICIES TO REVITALIZE GROWTH AND MAKE IT SUSTAINABLE OVER TIME ?

THE WORLD ECONOMY IS GOING THROUGH TOUGH TIMES.

THE CRISIS HAS RAISED NEW POLICY CHALLENGES, BUT IT HAS ALSO MADE THE NECESSITY OF STRUCTURAL REFORMS MORE APPARENT.

MAJOR REFORMS ARE STILL NEEDED  IN EUROPE.

THE GLOBAL CRISIS HAS BEQUEATHED SEVERAL COUNTRIES A LEGACY OF HIGH UNEMPLOYMENT, UNSUSTAINABLE PUBLIC FINANCES AND LOWER POTENTIAL OUTPUT.

STRUCTURAL REFORMS INCLUDE A VARIETY OF POLICY INITIATIVES – IN PRODUCT, LABOUR AND FINANCIAL MARKETS, AND IN TAX AND BENEFIT SYSTEMS, AMONG OTHERS – TO ENHANCE THE PRODUCTIVE CAPACITY OF OUR ECONOMIES.

FINANCE MATTERS FOR INCLUSIVE GROWTH : COUNTRIES WITH BETTER FUNCTIONING FINANCIAL SYSTEMS GROW FASTER OVER MANY DECADES AND IMPROVEMENTS IN THE OPERATION OF FINANCIAL SYSTEMS ACCELERATE THE RATE OF ECONOMIC GROWTH WITHIN PARTICULAR ECONOMIES.

ALSO, CONCERNS OF GROWING INCOME INEQUALITY LOOM LARGE IN PUBLIC DEBATE AND POLICY DISCUSSION.

GLOBALIZATION, TECHNOLOGICAL CHANGE AND POLICIES AFFECT WAGE AND EARNINGS INEQUALITIES.

IN SOME COUNTRIES, TOP EARNERS HAVE CAPTURED A LARGE SHARE OF THE OVERALL INCOME GAINS, WHILE FOR OTHERS, INCOME HAS RISEN ONLY A LITTLE.

TIME HAS COME TO PROMOTE INCLUSIVE GROWTH AS INEQUALITY KEEPS RISING !

PHLDUCX

SOURCE : OECD + WORLD BANK