The joint statement released at the G-20 summit in Pittsburgh acknowledges that a strong recovery will necessitate “macroeconomic policies that promote adequate and balanced global demand as well as decisive progress on structural reforms that foster private domestic demand, narrow the global development gap, and strengthen long-run growth potential.” In the aftermath of the economic crisis, pro-growth structural reforms may be held back.
As the main focus of policy-making during the recession has been demand support, the issue of structural reform may well be downplayed or even set aside. In part this may reflect political reasons: insofar as reforms have short-term costs, the political appetite for them could be low. But this would be a lost opportunity.