{
  "title": "Structural Reforms to Accelerate Growth, Ease Policy Trade-offs, and Support the Green Transition in Emerging Market and Developing Economies",
  "publication": "Staff Discussion Notes, September 22, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/09/21/structural-reforms-to-accelerate-growth-ease-policy-trade-offs-and-support-the-green-538429",
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  "summary": "In the aftermath of the COVID-19 pandemic, emerging market and developing economies are grappling with economic scarring, social tension, and reduced policy space. Policy actions are already urgently needed to boost growth in the near term and support the ongoing green transition.",
  "sections": [
    {
      "heading": "Context and key challenges",
      "content": "- Emerging market and developing economies face: economic scarring, social tension, and reduced policy space in the aftermath of the COVID-19 pandemic.\n- High public debt and persistently high inflation have constrained policy space and created difficult policy trade-offs.\n- Policy actions are urgently needed to boost growth in the near term and to support the ongoing green transition."
    },
    {
      "heading": "Framework for prioritization, packaging, and sequencing of macrostructural reforms",
      "content": "- Prioritize removal of the most binding constraints on economic activity to front-load reform gains.\n- Bundle complementary reforms to amplify impact, specifically:\n  - Governance reforms\n  - Business deregulation\n  - External sector reforms\n- Sequence other reforms appropriately to sustain gains, including:\n  - Labor market reforms\n  - Credit sector reforms"
    },
    {
      "heading": "Estimated impacts of a major reform package",
      "content": "- In emerging market and developing economies with large initial structural gaps, the estimated output effects of a major reform package are:\n  - about 4 percent in two years\n  - and 8 percent in four years"
    },
    {
      "heading": "Green transition implications",
      "content": "- Achieving higher growth and lower absolute carbon emissions over time requires a well-designed strategy that includes both:\n  - macrostructural reforms\n  - and green reforms"
    },
    {
      "heading": "Policy recommendations (implied by the analysis)",
      "content": "- Front-load reforms by removing the most binding constraints on activity.\n- Bundle governance, business deregulation, and external sector reforms to deliver larger, faster output gains.\n- Sequence labor market and credit sector reforms to consolidate and sustain improvements.\n- Integrate macrostructural reform strategies with green policies to simultaneously raise growth and reduce absolute carbon emissions.\n\nSource: Nina Budina; Christian H Ebeke; Florence Jaumotte; Andrea Medici; Augustus J Panton; Marina Mendes Tavares; Bella Yao — Staff Discussion Note, September 22, 2023.\n\n---\n\n Content in this bundle\n\n- Staff Discussion Note\n  - Staff Discussion Note (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Staff Discussion Note (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/09/21/structural-reforms-to-accelerate-growth-ease-policy-trade-offs-and-support-the-green-538429"
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    "Authors: Nina Budina, Christian H Ebeke, Florence Jaumotte, Andrea Medici, Marina Mendes Tavares, Bella Yao",
    "Published: September 22, 2023",
    "Series: Staff Discussion Notes",
    "DOI: https://doi.org/10.5089/9798400250095.006",
    "Emerging market and developing economies face: economic scarring, social tension, and reduced policy space in the aftermath of the COVID-19 pandemic.",
    "High public debt and persistently high inflation have constrained policy space and created difficult policy trade-offs.",
    "Policy actions are urgently needed to boost growth in the near term and to support the ongoing green transition.",
    "Prioritize removal of the most binding constraints on economic activity to front-load reform gains.",
    "Bundle complementary reforms to amplify impact, specifically:",
    "Sequence other reforms appropriately to sustain gains, including:",
    "In emerging market and developing economies with large initial structural gaps, the estimated output effects of a major reform package are:",
    "Achieving higher growth and lower absolute carbon emissions over time requires a well-designed strategy that includes both:",
    "Front-load reforms by removing the most binding constraints on activity.",
    "Bundle governance, business deregulation, and external sector reforms to deliver larger, faster output gains.",
    "Sequence labor market and credit sector reforms to consolidate and sustain improvements.",
    "Integrate macrostructural reform strategies with green policies to simultaneously raise growth and reduce absolute carbon emissions.",
    "**Staff Discussion Note**"
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