Saturday, December 2, 2023

[VIDEO] Structural Reforms: The Classical Cliché

Snippets of explanations of Prof. Arief Anshory Yusuf

Structural reforms are usually held to include policy measures that:

  •  Reduce or remove impediments to the efficient allocation of resources. In many cases, the efficient allocation may correspond to “laissez-faire” or the “free-market” outcome
  • Reduce government intervention, including the removal of state imposed price controls, the abolition of state monopolies, and fewer restrictions on trade and domestic or international financial transactions.
  •     Encompass measures to address market failures not due to government intervention, including natural monopolies, dominant market positions, or distortions in the financial sector arising, for example, from asymmetric information and moral hazard.

What is allocative efficiency? Resources are allocated to the activity that society puts the highest value on.

In the end, Prof. Arief explained the concept that was made. We must have a paradigm of pre-conditions of justice so that justice is not an outcome of the growth process, but as a prerequisite, because fairness of opportunity for education must accommodate all people, there should be no discrimination so that people can be good so that there is a talent pool.

Full explanation in video