A new look at the development agenda

Abstract

This essay summarizes some of the main ideas behind proposals for a new development agenda. It highlights first the need to strike a new balance between the market and the public interest, and to understand by “public policies” any initiative organized in pursuit of common goals, and not just State actions. The author makes five proposals for a new agenda: i) more balanced globalization with genuine respect for diversity, underpinned by a network of regional institutions; ii) a broad view of macroeconomic stability and the role of countercyclical policies; iii) the use of development strategies to foster innovation and production complementarities, without which macroeconomic policies are insufficient to generate dynamic growth; iv) improved social linkages, through long-term equity and inclusion policies, complemented by economic growth to create sufficient high-quality employment and measures to reduce structural heterogeneity among production sectors; v) subordination of the economic system to broader social objectives.