Restructuring economic policies in developing countries
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.
Type Classification: D: Detailed strategies