Alternative Paths to Structural Adjustment in Uzbekistan in a Three-Gap Framework
The author presents an internally consistent macroeconomic framework that could be used as a first step toward a more comprehensive, quantitative and qualitative assessment of the adjustment alternatives facing Uzbekistan. The three-gap framework f...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/10/2579639/alternative-paths-structural-adjustment-uzbekistan-three-gap-framework http://hdl.handle.net/10986/18036 |
| Summary: | The author presents an internally
consistent macroeconomic framework that could be used as a
first step toward a more comprehensive, quantitative and
qualitative assessment of the adjustment alternatives facing
Uzbekistan. The three-gap framework focuses on the major
imbalances of the economy for evaluating policy choices
facing Uzbekistan. It emphasizes the domestic, and external
factors that determine economic outcomes, and welfare. The
author attempts to quantify two policy scenarios-gradual as
against an accelerated policy implementation strategy. He
finds that an aggressive adjustment policy would indeed
improve most performance, and welfare indicators. Two major
ingredients of such an aggressive adjustment strategy are
the unification of the exchange rate, and implementation of
current account convertibility in the balance of payments.
The author also draws attention to the relative importance
of external financing, and the sustainability of the balance
of payments under alternative structural adjustment paths
facing Uzbekistan. |
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