Fiscal Consolidation and Structural Reform: Getting it Right

The Acceptance Problem:

At the analytical level, it first has to be accepted that there are good ways to run an economy – promoting sustainable growth, resilience and fairness – and bad ways. With respect to structural reforms, the OECD has carried out an immense amount of analytical work over decades into how to improve the functioning of labour markets, product markets, pension arrangements, social policies (particularly education and health) fiscal policy, environmental issues, and a host of other topics. In many areas, there is now a body of agreed principles (“evidence-based”) on what is helpful in what is not. Of course, this is not to deny the point made by Mr Hyun in his Opening Remarks that in many areas the jury is still out. In short, the analytical work on structural reforms sponsored by the OECD will have to continue, not least because the world itself is constantly changing. This, in turn, can call into question even principles once thought fully agreed. (con't...)

Event or Meeting: 
“Making Reform Happen” Conference organized by the OECD and the Korean Development Institute
Date: 
25 November, 2010
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