Getting these areas of policy right, in turn, implies that foreign investment will start to shift in composition towards greater FDI relative to portfolio investment and in a wider range of industries. More efficient infrastructure, more competitive firms with sustained productivity growth, and more skilled labour are as integral to achieving a permanently more competitive economy as forward-looking fiscal and monetary policy settings.
How we address our home-grown economic challenges is not to suggest that global difficulties can be left unattended. Three serious disorders confront the short and medium term. The first is the effects of macroeconomic policy making in advanced economies.