The IMF said in its blog that while there has been broad agreement on the economic benefits of structural reforms, the political impact is less settled because it would only generate gains in the longer term while inflicting short-term pain on some sectors.
KUALA LUMPUR: A major push for structural reform in an economy requires strong ownership by all stakeholders of the reform agenda as well as enhanced dialogue between the government with business and civil society, says the International Monetary Fund.
The IMF said in its blog that while there has been broad agreement on the economic benefits of structural reforms, the political impact is less settled because it would only generate gains in the longer term while inflicting short-term pain on some sectors.
It said those affected might be highly vocal and when this happens, politicians might hold back on reforms for fear they would be penalised at the ballot box.
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