Article Type

Article

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The government and opposition parties deserve the nation’s gratitude for sitting together to evolve a national consensus on finding solutions to the economic problems facing the country. My research suggests that the setting of long-term economic direction, continuity and consistency of economic policies, as well as the predictability and transparency of decision-making, are important factors that boost investor confidence and stimulate economic growth. Changes in political regimes, under those conditions, do not make any significant negative impact.

The present efforts by the federal government’s economic team to seriously discuss a 10-point economic agenda are highly commendable. But in my view, this agenda is highly inadequate to resolve the short-term crisis in public finances, or to restore investor confidence in the long-term. It has internal contradictions and has to be supplemented by other tough, politically unpopular measures. The success of the national consensus lies precisely in the fact that decisions which cannot be taken alone by the party in power, but which are essential for national welfare, become possible.

Publication Source

The Express tribune

Publication Date

1-25-2011

Pages

1-3

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