Winners v. Losers: The dilemma of reforms

Author:Patricia Neidlinger
Pages:9-10
SUMMARY

Picture this hypothetical country: the economy is stagnant; inflation is rampant due to monopolistic control or high tariffs; competition is virtually impossible; access to financial services is limited to a few; the tax system benefits a relatively small group of wealthy and prosperous people; and high and rising income inequality suggests that the benefits of recent growth have accrued mainly... (see full summary)

 
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9IMF RESEARCH perspectives | imf.org/researchbulletin
THE DILEMMA OF REFORMS
Patricia Neidlinger
WINNERS
LOSERS:
V.
Picture this hypothetical country:
the economy is stagnant; ination
is rampant due to monopolistic
control or high tariffs; competition
is virtually impossible; access to
nancial services is limited to a few;
the tax system benets a relatively
small group of wealthy and
prosperous people; and high and
rising income inequality suggests
that the benets of recent growth
have accrued mainly to those
at the top. There are signs of
discontent. These inefciencies
affect the capacity to inuence
economic change, but addressing
them is complicated.
Many real-world countries face
a subset, if not all, of these
problems, and decisionmakers
struggle to address these issues.
pneidlinger@imf.org

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