The policy recommendations suggested in the study, such as balancing risks and rewards, addressing vulnerabilities strategically, and investing in capabilities, may have potential trade-offs and unintended consequences. For example, while calculated risk-taking is essential for economic development, excessive exposure to risks could lead to financial instability or market downturns. Similarly, focusing on vulnerabilities in specific sectors or institutions may inadvertently neglect other critical areas that also require attention.
To mitigate these potential trade-offs and unintended consequences, policymakers should adopt a holistic approach that considers the interconnected nature of economic factors. By conducting thorough impact assessments and scenario analyses, policymakers can anticipate and address any unintended consequences of their policy interventions. Additionally, engaging with stakeholders, experts, and affected communities can provide valuable insights and perspectives that may not have been initially considered. Flexibility in policy implementation and a willingness to adapt strategies based on feedback and evolving circumstances can also help mitigate risks and ensure positive outcomes.