Policy Challenges for Emerging and Developing Economies : Lessons from the Past Decade
The 2009 global recession demonstrated, once again, the importance of crisis prevention as well as the critical need for preserving policy room so that emerging market and developing economies (EMDEs) can act when their economies are hit by shocks....
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/249291584025972023/Policy-Challenges-for-Emerging-and-Developing-Economies-Lessons-from-the-Past-Decade http://hdl.handle.net/10986/33440 |
| Summary: | The 2009 global recession demonstrated,
once again, the importance of crisis prevention as well as
the critical need for preserving policy room so that
emerging market and developing economies (EMDEs) can act
when their economies are hit by shocks. And now, with the
global growth outlook still weak and vulnerabilities rising,
these lessons underscore the need for comprehensive policies
to improve EMDEs' resilience to shocks and lift
long-term growth prospects. On the macroeconomic front,
priorities include shoring up fiscal positions, keeping
adequate foreign reserves, and strengthening policy
frameworks. Financial sector policies to adapt to a changing
global financial environment include strengthening home-host
supervisor coordination and establishing prudential
authorities with the appropriate tools and mandates to
mitigate systemic risks. Structural policy priorities
include investment in human capital and infrastructure to
offset the decline in potential growth that is expected to
continue over the next decade. Renewed reform momentum is
needed to create the environment that generates private
sector-led, productivity-driven growth supported by measures
to improve governance and business climates. |
|---|