Mark McCord [Archive.org URL]

From a policy standpoint, many countries continue to focus on privatization, liberalization, deregulation and modernization as growth strategies. Unfortunately, according to Jean-Eric Aubert of the World Bank Institute, these policies typically do not yield the expected fruits due to their lack of sustainability, because they often fail to take into account emerging opportunities. For instance, the privatization of aging factories does little to enhance economic growth, especially if the sector in which that factory operates yields few opportunities for growth. At the same time, liberalization, deregulation and modernization only make sense if they focus on industries that actually have potential to grow the economy. This is often not the case, as governments in emerging markets typically use these strategies to either attempt to breathe life into uncompetitive industries or to embrace macroeconomic reforms that do little to identify specific economic opportunities.

Like this content? Why not share it?