Economic reform is a way through which a falling and unstable economy is transformed to bring economic and financial growth. Many countries around the globe have adopted economic reform programs to improve their productivity, rate of employment and fiscal conditions.
The main objectives of economic reforms are :
Liberalisation and opening up of the economy.
Improving the availability of resources.
Proper redistribution of resources so as to minimise inequality across the different rungs of the society as well as across sectors..
Balance between different sectors of the economy.
Making the corporate and the public sector more effective
Minimizing poverty by reducing the rate of unemployment.
Minimizing budget deficits by generating more revenue.
The economic reform measures focuses mainly on achieving a sustainable economic growth. In general these measures include certain things.
Best usage of the available resources.
Accountability and transparency in the fiscal management system.
Major Reform Elements:
The major elements of economic reform are liberalization, improved resource allocation , tax reform, privatization and macroeconomic adjustment.
Implications of Economic Reform:
Relationship between the cooperating institutions will improve.
The competitiveness of the commercial and business enterprises will increase.
Through economic reforms, financial and performance reporting has to be bettered to improve decision making as well as analyzing the impacts.
Last Updated on : 26th June 2013