2 Jul 2016
Is there a single way to reform ?
The word “reform” implies determination and renewal and is constantly used in the political realm. Yet its meaning is not that clear. Austerity, fiscal expansion and flexisecurity are all terms that reflect different ideologies on which reforms may be based.
Reform may entail increasing State control over the economy or, on the contrary, giving economic stakeholders as much freedom as possible. Take, for example, the three post-war decades of growth, characterised by high levels of state intervention, while the period that followed –particularly from 1983 onwards– was an era of deregulation. Reforms are never the same over time.
But are reforms alike, from one country to another? At a time when interdependence is on the rise, could we consider applying a reform that is radically opposed to the one being implemented in neighbouring or competitor countries? Should France resign itself to financial austerity?
If there is only one model for reform, whose is it? Germany? The United States? The Scandinavian countries? Does reforming à la française actually mean anything?
Cercle des économistesBiography
Augustin de ROMANET
Chairman & CEO
Luiz PEREIRA DA SILVA
Deputy General Manager
The Bank for International SettlementsBiography
Chairman and CEO