By Babajide Komolafe

All countries need to focus on structural reforms to drive future economic growth, says Robert  Zoellick,  World Bank President.

“All countries – developed and developing – need to focus on the structural reforms – the microeconomic policies – that will drive future growth”, he said  at the 14th Annual Global Private Equity Conference of the International Finance Corporation.

Explaining the importance of structural changes to the recovery of the global economy, Zoellick said, “Structural changes are essential to enhance productivity, competition, and innovation for developed and developing countries – whether it’s so that Europe can restore its economic performance, or China can avoid the so-called “middle income trap” and meet its challenges in the coming decades.

Structural reforms are important for the United States, too.  In practical terms – and for investors like you – what does structural reform mean? It means strengthening the fundamentals of productive supply-side growth in all sectors – agriculture, manufacturing, services.

It means investing in infrastructure – especially through public private partnerships.  It means private sector development – the engine of innovation and job growth: markets; investment; small and medium-sized businesses; as well as focusing on jobs training and skills.

It means expanding markets – through both the hardware and software of trade: regional integration; ports and infrastructure; lowering the costs of formal, informal, or logistics barriers.

At the same time, structural reform means investing in green growth and energy efficiency – because “growing dirty, cleaning up later” is not a viable option.  Environmental degradation cannot be the price for short-term growth.

Structural reform also means investing in human capital: Efficient and affordable safety nets – because only 1 out of every 5 people in the poorest countries has any form of social protection;   Basic financial services – because more than half the world’s poor, almost 2.4 billion people, are “unbanked”.

Basic nutrition and health – because without these essentials, people cannot begin to achieve their potential; and   Quality education, connected to training, which leads to better jobs, more innovation, and greater gains for all.
Investing in people means tapping the energies and genius of all: young people, the elderly, and not least girls and women – an under-realized source of growth everywhere.”