Fiscal Policy Framework Research Articles

Policies for Economic Development

This paper looks at the economic policies and institutions needed to generate and sustain economic growth and development. It argues that policy and institutional reforms are needed in three broad areas. First, the need for a fiscal policy and overall macroeconomic framework that ensures stability is critical. Second, sectoral pricing and investments ought to address key constraints to growth while respecting the requirement for stability. Third, the domestic economy needs to be integrated with the global economy to increase competition and improve competitiveness. Policy and institutional reforms in these areas are necessary both for adjusting to exogenous changes and for ensuring long-term growth and development. To enable the appropriate policies to emerge in these areas, government must act competently in the spheres that are its proper concern. The paper concludes with a brief discussion of some of the major remaining uncertainties.