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Transforming the European Economy (Paperback)
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Transforming the European Economy (Paperback)
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As industries evolve and restructure, the capacity of an economy to
adapt to new economic conditions determines its success over the
long run. Three key forces are currently driving change in the
developed economies: expanded global competition, the increased use
of information and communications technologies, and the development
of the global financial system. Arguably, these forces have created
a new economy due to increased intensity of competition, as well as
altered demand patterns and changes in the way businesses operate.
Europe grew rapidly for many years, but now, faced with greater
challenges, several of the large economies in Europe have either
failed to generate enough jobs or have failed to achieve the
highest levels of productivity (or both). Realizing these
difficulties, the European Council, meeting in Lisbon in March
2000, proposed reforms to promote a "radical transformation of the
European economy." In this study, Martin Neil Baily explores why
Europe's growth slowed, what is the contribution of information
technology to growth, and what policies should be followed to
facilitate economic transformation. He emphasizes a system with
strong work incentives and a high level of competitive intensity.
It is not necessary to eliminate the protections for individuals
that Europe has built up. But both social programs and policies
toward business must be reoriented so that they encourage economic
change.
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