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Overall, the most effective combination appears to involve both structural budget-balance targets and nominal expenditure ceilings. Debrun et al. (2008) find that policy tends to be less pro-cyclical where the rules for setting budget-balance targets and expenditure ceilings explicitly address the macroeconomic stabilisation function of fiscal policy, as well as debt/deficit management. The fiscal frameworks in many successful consolidation episodes built prudent macroeconomic assumptions into the budgetary process.
The Political Economy of Policy Reform, Institute for International Economics, Washington, DC. Williamson, J. and S. Haggard (1994), “The Political Conditions for Economic Reform”, in J. ), The Political Economy of Policy Reform, Institute for International Economics, Washington, DC. Yang, K. and S. ”, Journal of Public Administration Research and Theory 19:2, April. MAKING REFORM HAPPEN: LESSONS FROM OECD COUNTRIES © OECD 2010 _it E d it io nl y u le O d se ea e R O EC Chapter 2 w se n D Br o 2.
Most OECD countries had accomplished these basic reforms by the late 1980s. Barriers to investment typically take the form of procedures for screening or authorising foreign investors, or rules that bar or limit foreign investment in designated sectors or activities. In the OECD area, most barriers to investment were lowered or eliminated along with liberalisation of trade. However, less obvious constraints remain in place. Removing these non-tariff trade barriers and remaining restrictions on foreign investment is a current challenge.