Restructuring economic policies in developing countries

Description

Restructuring economic policies in developing countries involves revising fiscal, monetary, and regulatory frameworks to promote sustainable growth, reduce poverty, and address structural imbalances. This strategy targets inefficiencies, encourages investment, diversifies economies, and strengthens institutions. Practical actions include reforming tax systems, improving public expenditure management, liberalizing trade, and enhancing governance. The intent is to create resilient economies capable of responding to global challenges and delivering equitable development outcomes for all citizens.

Context

The pace of development of developing countries depends greatly on the effectiveness of the domestic economic policies that each government pursues. These policies can be effective even in a generally unfavourable international environment. Many developing countries need to make structural changes if they are to resume satisfactory long-term growth. Public finance offers many opportunities for reform of this kind. The ways in which governments raise revenue can substantially affect economic efficiency.

Implementation

Examples of successfully restructured economic policies include: the East Asian newly industrialized economies; Botswana; China; Colombia; India; Indonesia; Thailand; and Turkey. In each of these countries strong economic performance in recent years can be traced to sound policies - not just to special factors such as external aid or natural resource endowments.