Pro-competitive market policy and legal environment. The research focuses on these four policy domains because: Specific structural policies are needed to achieve the KBE characteristics and subsequent New Economy outcome; Increased complexity, dynamism, and synergies among structural policies in the New Economy argue that these policies are better addressed together than in a piece-meal fashion; The forces of the New Economy affect how structural policies work to transform an economy, thus warranting a fresh review of those policies.
The specific conclusions for each policy domain flow from impediments and challenges gleaned from research both for this Report and elsewhere, as well as analysis of the case studies prepared for this Report. Several conclusions are crosscutting, which reminds us that in the New Economy the inter-relationships among policies are tighter and policy authorities and implementing bureaucracies often overlap. This research suggests that certain policy reforms will be required in order to achieve the broadest economic benefits of the New Economy. However, policymakers face many challenges and must weigh many factors when making decisions.
As written from the perspective of economists, the analysis suggests that these reforms are required in order to maximize the economic development potential of the New Economy. The analysis cannot say, nor does the Report try to say, that a policymaker must or should be required to undertake any specific reform. But, it is clear that choosing to undertake reform (or not) is a causal step with implications for development and the so-called digital divide. Therefore, the conclusions in this Report should not be viewed as binding on decision-makers, beyond the rational interpretation of the results of the research and analysis contained herein. Spanning the four domains:
The New Economy presents many cross-cutting challenges and affects the conduct and performance of many policy-making agencies. In many economies a political decision to create super-ministerial responsibility for crosscutting New Economy developments is needed. Research suggests that synergies among policies are enhanced by the forces of the New Economy, yet policies tend to be “stove- piped” within the bureaucracy of policymaking (meaning that each narrowly focused team tries to keep policy making to its self).
Moreover, research suggests that access, use, and diffusion of New Economy benefits can be enhanced through public-private partnerships, particularly when domestic funds for such activities are limited. Giving the New Economy an elevated position at the bureaucratic table will promote crosscutting reforms and enable effective public-private alliances. - 5-