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Structural Reforms Without Prejudices (Hardcover)
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Structural Reforms Without Prejudices (Hardcover)
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Our economies face constant challenges from many different
directions. Structural reforms are implemented every day, either to
grasp the benefits of globalization and technological change, or to
avoid foundering on unaffordable welfare systems or the rise of new
economies. Despite this flurry of reforms, many of their effects
are insufficiently understood. What makes reforms a success or a
failure? Why do we witness systematically ambivalent attitudes to
reforms? Can governments implement reforms differently, without
inflicting prejudice to large fringes of the population? This book
explores these issues by comparing a number of reforms, across a
large set of countries and sectors. First, through an innovative
multisectorial input-output analysis, the authors compare the
effects of liberalisation reforms in the telecommunication and
electricity sectors across Europe. Surprisingly, they find that
very similar and well-intended reforms can generate highly
contrasted outcomes. It is also shown that governments must
consider the effects of each reform on all sectors of the economy.
Second, the authors explore how governments can tailor their reform
strategy to alter the redistributive effects of reforms. They show
that the government's approach to reforms has been very different
across time and across countries. A government's approach depends
on local institutions, on the nature of the opposition, and on the
scope of the reform under way. The authors, however, show that
governments do have alternatives. Often, there are ways to tailor
reforms so as to protect specific parts of the population; and
there are ways to experiment gradually, to avoid costly policy
mistakes.
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