Private sector reforms are crucial to reducing unemployment in
The private sector's ability to grow and create employment is contingent on medium- and long-term policies to provide a competitive environment, said a
Such policies must ensure that firms have fair access to resources as land, capital, and credit, the
An element that would spur investment and growth is easing bankruptcy, liquidation, and restructuring procedures. This would encourage firms to reorganise, and strengthen creditors' incentives to lend, according to the report.
Another reform should be the removal of costly energy subsidies, the
Costs and benefits of those policies must also be weighed to prevent potential ramifications of policy interventions.
Boosting the private sector will expand the quality, quantity, and distribution of jobs especially to excluded groups including women, youth, and peripheral parts of
The paper further explained that the lack of a competitive environment in the private sector reduces incentives to invest in new technologies or higher-productivity products, which results in insufficient economic dynamism and employment creation.
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