This is seen as a more fruitful way to generate additional employment and increases incomes. At the same time, there is full recognition that lower income groups require special assistance of various types, and that another important role for Government is to assure the provision of adequate physical and social infrastructure. It is generally felt that Government does not necessarily have to provide such infrastructure itself, but it is responsible for guaranteeing that those needs are met. These changes in orientation have been accompanied by an emphasis on different classes of macroeconomic policy instruments. In some countries, reserve ratios still play a role in monetary management.
Trade policies involve customs duties more than quantitative controls.
In addition, the institutional and regulatory frameworks are increasingly seen as central to adequate functioning of the economy, and a considerable amount of policy work throughout the developing world deals with issues such as budgetary processes, public service reform, rates and tariffs on public services, investment and taxation codes, privatisation of state-owned enterprises, financial regulations, land tenure issues, labour market regulations, environmental regulations, rules for management of natural resources and the role and financing of local government. In such areas, the dividing line between macro and sectoral policies inevitably blurs. Nevertheless, decision makers at the macro level are responsible for ensuring that all such policies have a consistent focus and complement each other. That is one of the reasons for drawing up a document such as this National Development Strategy. The context of our macroeconomic policy has changed significantly in recent years.