The author of the article highlights 3 main key points to reform the world economy:
(1) Industrial country governments are to act decisively on the structural front. Fiscal stimulus and quantitative easing are not enough. (e.g. more support for education and research, pro-growth tax, housing finance reform, job retraining)
(2) Emerging economies need to be more resolute in shifting the emphasis of policies from just the producer to the consumer. There is a need to strengthen pension systems and other social sectors, harnessing the purchasing power of their growing middle class.
(3) The legitimacy of the G20 is at risk currently. Europe needs to show leadership and allow a much-delayed redistribution of IMF Board seats and voting power to show the legitimacy of the G20. Without legitimacy, the IMF can do little to inform and influence countries. Its analysis will fall on deaf ears.
No comments:
Post a Comment