Page 20 - Ekonomija i Biznis_May 2016.indd
P. 20
РMУEБGРAИINКАTERVIEW
(photo: Еconomy and business)
industrial revolution is knowledge. In mention the labor market where edu-
order to catch up, our education should cation needs to provide for supply with
be reoriented towards mass production better quality, and the flexible frame-
of technicians, engineers and software work should provide strong demand,
developers. Equally important is to build then there are the effective institutions
efficient institutions and to avoid the that make the difference between mid-
trap of middle-income countries whose dle-income and high-income countries
growth has stagnated because of ineffi- and innovation.
cient institutions. The third challenge is
to create a stable political environment. Let us turn also to the global events.
We pay high price for the present politi- Signaling interest rates of central banks
cal risks. fell to lowest levels recorded and re-
mained there for a long time. In some
At the end of last year you had a pre- countries we even see negative interest
sentation in Zagreb, which ended with rates. All of this is in order to encour-
the words: Do structural reforms or fail. age further economic recovery of the
What are the most important structural domicile economies. Is there still a need
reforms that our country needs to do in for such a stimulus? If there is such a
the next five years? need, given the negative signaling inter-
est rates, do central banks have other
D. Bogov: The word structural re- instruments to encourage economic re-
forms covers a wide range of areas, but covery?
usually refers to a flexible labor market,
favorable business climate, efficient in- D. Bogov: The period after the great fi-
stitutions, disciplined fiscal policy and nancial crisis of 2008 is unique in many
an innovative and dynamic private sec- ways. Interest rates of central banks
tor. In some of these areas we fare bet- have never been so low for so long. Bal-
ter, in other we fare worse. As the most ance sheets of central banks have never
important for the next five years I would been so inflated as a result of the ex-
20 May 2016
