Daredevil Economics: Rapid Reforms Bring Growth Despite Short-Term Pain
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New research shows rapid economic liberalization offers growth along with short-term pain. Many falsely believe it failed based on crises in Russia, Africa, and Latin America.
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Daredevil economics with big reforms was common in the 1980s-90s across the world. But it has declined recently with less pressure from the West.
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Evidence shows daredevil reforms generally succeed in raising GDP, even if painful initially. Lack of full commitment, not the reforms themselves, often causes failure.
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Argentina's issues stem from budget deficits, not past liberalization attempts. More reforms could help its economy and demonstrate a path for other nations.
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The world has forgotten how to reform. Politicians must find the courage again for daredevil economics despite disruption.