09/07/2007 1:27:55 pm
Phelps and Cotis. The Confederation of Swedish Enterprise today had a seminar here in Visby about economic reform. They keynote speakers were Professor Edmund S Phelps, Nobel Laureate 2006, and Jean-Philippe Cotis, OECD Chief Economist.

Professor Phelps, whose work I find very important, made a number of good points. He questioned the definition of growth. The main aims of economic policy should be dynamism and inclusion, according to him, not certain figures of growth or employment.

In contrast, Mr Cotis used numerous figures to show the need for reform. Phelps has a point, figures may be misleading, especially as policy aims. Macro aims usually lead to narrow-sighted state interventions. But they are often useful in describing the current state of affairs.

Mr Cotis briefly touched upon why there is so little reform, desipte the great need and knowledge. Indeed the topic of my next book, I know there are many reasons, but also that they can be overcome. Many countries, after all, have reformed. It is a matter of policy and strategy.

Mr Cotis effectively countered two myths on the topic; that you need to be a small country in a big crisis. His reply was that you choose neither voluntarily. Therefore, other aspects of preconditions for reform have to be focused.