All nations in Balkans share the same economic problems. They had socialist economies and now they look for the right way to build both modern society and economy. They are affraid to push forward and make resolute decisions.
This could be a great example for Balkans. New Zealand also had serious problems with his economy during the 70`s and 80`s. How did they handle it?
Maurice McTigue was minister in all New Zealand`s reformist governments. Listen what he`s got to say on this subject.
The main point of Mr McTigue`s exposure is that government must step away from economy and let the citizens and business people to make the economic progress. The government`s job is to create good legal enviroment for it, not to do what people should do.
When reform government came to power in New Zealand in 1984 they saw what were the key problems:
- too much spending
- too much taxing
- too much government
What was their answer? Simply, they reduced taxes, they reduced public spendings and they reduced radically public administration.
Example: The Department of Transportation had 5600 employees before the reform. After it, it had 53 employees.
It is very important to create business-encouraging enviroment. The people from public administration who get fired need developed private-business sector which is able to absorbe them. So the most important thing is to rise private sector by reducing taxes, public spending and public monopoly.
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So, why the Balkans couldn`t do just the same thing?