Strengthening national economies

Improving national economies
Restoring domestic economy
Repairing national economy
Stabilizing national economies
Retooling national economy

Description

Strengthening national economies involves implementing coordinated policies and initiatives to boost economic resilience, productivity, and sustainable growth. This strategy focuses on remedying issues such as unemployment, fiscal instability, and trade imbalances by promoting investment, diversifying industries, enhancing infrastructure, and supporting innovation. Practical actions include reforming regulatory frameworks, improving education and workforce skills, fostering entrepreneurship, and ensuring equitable access to resources, thereby enabling nations to withstand external shocks and improve overall living standards.

Implementation

As of mid-1988, three main steps were recommended to to enhance growth prospects and reduce the risks of further instability in the financial market and, possibly, a sharp slow down in activity beyond the near term: 1. Credible action to reduce the USA federal budget deficit, leading to a lasting reduction in the country's current account deficit and to lower real interest rates. 2. Maintenance by Japan and acceleration by Germany of the growth in domestic demand through appropriate macroeconomic and structural policies. 3. Further action by the newly industrialized economies of East Asia that were running sizeable current account surpluses to accelerate the growth of domestic demand, appreciate their currencies against the dollar and reduce the degree of protection of their domestic producers.

Claim

Progress towards three goals is necessary to improve the economic outlook in both industrial and developing countries: reducing economic imbalances among industrial countries; restructuring economic policies in developing countries; reducing net transfer of financial resources from developing countries.