Second Generation Reforms

Abstract

Economic reforms include comprehensive and radical changes in the functioning of the economic system and its main rules. There is no clear and generally accepted classification of economic reforms in the literature. In this study, economic reforms are analyzed by classifying them as first-generation reforms and second-generation reforms. First-generation reforms are made in macroeconomics for the purposes of eliminating macroeconomic imbalances, ensuring stability, controlling inflation, ensuring fiscal and monetary discipline, reducing public debt. Second-generation reforms are microeconomic reforms, which include strengthening the infrastructure of the market economy, increasing efficiency, enhancing the competitive power, and strengthening the institutional infrastructure that creates competitive markets. The aim of this study is to examine the theoretical framework of first-generation and second-generation reforms in line with macroeconomic and microeconomic expectations and to explain and discuss the main areas of second-generation reforms.