***** «IMF»: the time of the growth of the emerging economies gone irretrievably due to rising commodity prices

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***** «IMF»: the time of the growth of the emerging economies gone irretrievably due to rising commodity prices

Post  Admin on Fri Dec 27, 2013 5:37 am

December 27, 2013 12:12

The IMF said that the era of strong growth in many of the economies of emerging countries, which was derived from the momentum licenses cost money and high commodity prices, it may be gone forever.

 She Khbayrtan in the fund that the slowdown in these markets reflects not only the inadequacy of global demand, but also structural factors that make the growth engines of the previous less effective, as well as the fact that «the economic conditions of good trimmed incentives calling for the application of more economic reforms will enhance productivity.

According to Al-Watan newspaper

A second generation

Experts said that it is required at the present time a new generation of reforms that should be the focus of governments during the next wave of structural policy reforms and to increase competition and improve the efficiency of the performance of the markets.

In most emerging market economies, we find that productivity growth will be linked to its ability to «climb the technology ladder», in other words on these markets to give up their reliance on cheap goods and margins are low and moving instead toward industries and value-added products, which involve opportunities to make a profit The greatest gains, and these reforms are as follows:

-1 Improve the climate for the establishment of the business, as it should be to focus on reforms to reduce administrative burdens and simplify the laws and legislation, as well as to promote competition and reduce contraband respects banned.

-2 Cancel distortions and imbalances in the labor market, where strict laws, both in use or termination of services and systems that protect labor encourage the spread of activities of small and informal institutions that are mostly unproductive.

-3 Liberalization of foreign direct investment, where the restrictions on these investments may hinder the entry of modern technology to these markets and thus weaken its competitiveness due to prevent the transmission of technology between countries and institutions to prevent the entry of new markets.

Financial Sector

She said The experts had to be reform of the financial sector through two measures first is the removal of ceilings on interest rates and controls on credit in addition to offering legislation more powerful and regulatory frameworks able to rein in financial practices is discreet on the market, opening the way to capital flows in the channels that generate revenue best.

The second is to measure the development of domestic financial markets, and developing improved and more particularly with respect to local currency and bond markets, which will increase the abundance of creative financing for investments long-term.



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