Restructuring economic policies in developing countries
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.
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.
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