CIAO DATE: 09/2009
July 2009
Carnegie Endowment for International Peace
There is no single solution to the effects of the financial crisis on middle-income countries, but introducing fundamental labor markets reforms to create high-paying jobs will be the key to restarting economic growth, according to a report by Alejandro Foxley, the former foreign and finance minister of Chile. Labor reform is always politically contentious, but the current crisis, by illustrating the dangers of ignoring necessary long-term reforms, has made it easier to reach consensus on the need for action. If policy makers undertake the right reforms, middle-income countries could achieve higher growth, better standards of living, and more effective government.
Resource link: Recovery: The Global Financial Crisis and Middle-Income Countries [PDF] - 7.6M