Many economists ask the question ‘why does the country not introduce seemingly obvious structural reforms to boost growth and employment?’ The answer to this question is complex and relates to the power dynamic in a country. Structural reforms often have winners and losers. The losers are often diffused and dispersed, and therefore not able to mobilise to demand structural change.
In others, even if some such discipline is at work, banker horizon is excessively short until end of the CEO’s term.