Economy Reform

Economy reform has tremendous potential for the economic growth of a country. Economic reform helps to enhance the living standard of the people of a country. It helps the country to evolve strong from its economic and political crisis.

Economy reform has tremendous potential for the economic growth of a country. Economic reform helps to enhance the living standard of the people of a country. It helps the country to evolve strong from its economic and political crisis.

Distinctive Measures: Economy Reform

Normally a country initiates economic reform if it faces economic crisis like technical change favoring capital and skilled labor, increased vulnerability, economic risks, changing of economic power and many more. In such situations, a country adopts distinctive measures to stabilize its economic condition. Some of the common measures adopted by most of the countries in similar situations are as follows:

• Devaluation of the currency of the nation. This is done to make exchange rate more idealistic in nature.
• Elimination of limitations on imports
• Elimination of balance of payments deficits
• Relaxation or removal of all subsidies
• Encourage foreign financial establishments for investment
• Autonomy of the Central Bank

As distinctive measures, the country also carries out some structural adjustments. Some of the major adjustments normally executed at the beginning of economic reform are as follows:

• Liberalization of industries
• Encouraging privatization of government entities
• Promoting export oriented growth
• Encouraging foreign capital and technologies
• Exchange of capital and funds with foreign countries
• Encouraging foreign financial and services industries
• Safeguarding intellectual property rights
• Initiating sound climate for implementing legal contracts, industrial farms and private property rights

Get more information about Economic Reforms in different countries on EconomyWatch below.