In the developing countries sound economic management involves the recognition of the fact that the Government and the private sector each has a role to play that is complementary and not competitive.
The private sector must be acknowledged as the “engine or economic growth”.
Economic growth, and with it human development, will be achieved not by increasing the size of the state bureaucracy, but by unlocking the creative energy and the entrepreneurial skills of the people.
Government has a critically important role to play in creating the conditions for economic development.
These include:
Like it or not, in a world moving towards economic globalisation and free trade, market forces influenced by productivity, efficiency and competitiveness are going to play an increasing role in determining where, how, when, and if, economic development takes place.
Governments and entrepreneurs ignore these market forces at their peril.
Globalisation and free trade create challenges and opportunities. It also creates dangers for the underdeveloped world that rallies heavily on primary products, lacks developmental infrastructure and is saddled with a massive historical debt burden.
If the gap between the developed and the underdeveloped countries is not to become greater, globalisation will require a truly global approach to economic development.
