Need for policy reforms acute for emerging markets facing growth headwinds, warns Albert Park on CNN
In an op-ed published on CNN.com, Albert Park, Director of HKUST IEMS, points out that growth rates in emerging markets have slowed noticeably and perhaps indefinitely. These markets are now faced with development “headwinds”, such as slow recovery in the U.S. and Europe, low energy prices, financial deleveraging and rapid population aging. Critical reforms must be carried out to inject new growth momentum into the economy, including accelerating interest rate liberalization and capital account opening, as well as eliminating the dominance of state owned enterprises and dismantling entry barriers in key sectors such as energy, telecommunications and finance. Still, the outlook for emerging market countries will depend most critically on the institutional and policy reforms made by each country’s political leaders.
Read the full article here.
Prof Park was also one of the three expert panelists speaking at the Virtual Think Tank panel discussion, hosted by Andrew Stevens, about the macro environment of the world’s emerging markets.
Watch the full video recording here.
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