However, human and financial capacities in developing countries required to implement the suggested changes are likely to be insufficient. This is where international assistance and global coordination should come into fore. The traditional approach of international financial organizations, focused on promoting macroeconomic discipline, liberalization and limited role of the state needs to be significantly broadened and reoriented to cover two other critical areas. Institution building in developing countries should be a top priority, including market institutions, law enforcement institutions and public governance. The process should ensure institutional convergence with developed countries through disseminating and putting into practice institutional standards and norms in developing countries.
Institutional convergence is necessary to assure higher competitiveness in the era of globalization.
This also involves building social capital as an important factor of production necessary to reduce transaction costs and risks connected with business activities. The other priority area should be to help developing countries to establish basic physical infrastructure to make economic and social development possible, including private sector development, in form of roads, airports, sea ports, telecommunications, electricity and water supplies, etc. A traditional approach to ensure equity has been to introduce social goals into economic activities. This approach was at the heart of the early experiments with central planning, nationalization and price and wage controls. More recent attempts involved efforts to create a social market economy , to establish a capitalism with a human face , or to put people before profits .