Strengthening national economies
Synonyms: Improving national economies
Restoring domestic economy
Repairing national economy
Stabilizing national economies
Retooling national economy
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.
Type Classification: C: Cross-sectoral strategies