Structural reforms, depending on each country, are usually a series of measures that work to change the economic structure and potentially improve it. On this occasion, this medium contacted Emiliano Libmanfrom FUNDAR, which developed in depth everything related to this topic.
“Structural reforms are a term that was coined in the 90s., within the framework of the programs that countries like Argentina had with institutions like the IMF,” commented Emiliano Libman. “In general, The International Monetary Fund proposes programs calling for fiscal and monetary policiesbut in the 80s, the organization realized that in some countries it was impossible to get the economy back on track without more substantial change”he added.
How structural reforms impact the economy
Later, Libman stated: “The impact it should have on the economy depends, it is very varied because it depends on what reform you are looking at and in what context you are applying them.” Then, he stated that, “there is a great variety of cases in experience and reforms have not always worked well“You cannot know if the reforms are going to be useful or not if you do not talk about the case and the details of each particular reform.”
Argentina heads the list of countries that adopt the most reforms
“Reforms are a very typical thing in Latin America and in similar countries,” said the interviewee, who later completed: “Argentina is among the champions when it comes to adopting reforms and also when it comes to going backwhich is one of the worst things a country can do, the worst thing you can do for the rules of the game is change them all the time.”
On the other hand, the representative of FUNDAR pointed out: “What the experience and numbers show about the reform processes is that It is important to have an adequate institutional framework”. In turn, he remarked that, “one of the things that Argentina has not achieved is agree on what reforms we need and address the institutional mechanisms to sustain them over time.”
To conclude, Libman expressed: “One of the issues is that there is some political consensus that the institutional mechanisms are adequate and another very important thing is that The reforms are designed by Argentina and are not imposed from outside”.