First, make the market function more efficiently so that risk is priced correctly. If market failures occur and consequently the price mechanism doesn’t work, public policy should look into the incentives existing for financial market participants and - if need may be - adapt the framework. Too big an appetite for risk is at the heart of subsequent financial crises.
In addition, the transition to a market economy and the progress of industrialization of these former socialist countries and the developing Asian countries have stimulated the industrialized countries to strengthen the competitiveness of their economies.