Economic Reform Policy and Long-term Real Targets

Abstract

liconomic policies play an important role in influencing the path 0/
long-term economic: peformance of nations. Policym reforms idenfv/1g
the .\el ()/pvllcles liIut should he changed and designing the new set of olfcrna/iVi?
poliCieS. The reform measures cOllld fake l11acro or sectoral jurJJls or foJ/o\!' (}
certain seqlleJJce. uitimaet a/policies wouldput 1r1 place and gel
il11plelllC'llled depends on the polilical economy of the domesfl c ,system. DesigninR
(lI1d implementing reform /) J/icitely es which suit the realilies of Ihe dOI}/('slic
economiC, polilir.a/ nnd social condillons is indeed n challenging task and takes
direrse forms. COUnll}' experiences exhibit mixed pictures. Infernoljollnl jiJ7r1t7cial
instilu tlons have come 10 play n crucial rule in fhe jJrocess aJ1d countries thal seek
finan cial n.rsis/(lIIce lim'e 10 IIIltierlake reform measllres. The cOlltentirJJl 0/
ceJl1diliolla/ilics seems 10 ensure the smo() th flow (~r in/(/J'}wlionnljinnl1ce and Ihe
pro/eel/nil of elobal jill once. Ji'())}/ a repea l o/Ihe deDI cn,'IS The pollc.Y' package.
though important fa ensure the jinancinl s[abilify uf [he rejoFmlJlg iTa/loR . cOlild
110t be slistainable in the longer term since it fai ls to address Ihe real targets 111
reforming nations. 71lOse (;O llJllries which adopfed preJJ1(](lIre h/)(:rallzlIlioll
policies St~/rered Irom deterioralion il1 economic P(,I:/ol'J}wl/ce or il7 some caS('.\·
short-term stabilization was achieved at the cosl of long-Jam reol {Orgels, TIJis
paper addresses the inlcrOClion of reform policy meas/lres and long-term real
largets and argues Ihol a vihrant markel econom.'v lakes more 'han declaring {1
free market policy. 11 warns that a premature IiberalizatirHi poliGY i.r as ham!/itl as
rampant government illleJ l'enNon.