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The Trade and Structural Adjustment Project (TASAP) study finds that in tackling the challenge of structural adjustment, all countries, developed and developing - albeit with differing degrees of emphasis - will benefit by adopting at the national level an appropriate policy framework: macroeconomic policies which promote stability and growth; labour market policies which help develop workers’ skills and which facilitate a smooth transfer of resources from declining to expanding activities; an efficient regulatory framework; a sound institutional and governance framework; and liberal trade and investment policies which support structural adjustment by contributing to growth, innovation and competitiveness
For the poorest countries, the study emphasises the importance of appropriate institution building and the development of human and physical capital. A summary of policy recommendations were included as "Recommendations for Good Practice".
The study further emphasises that governments are strongly encouraged to pursue reform across different policy areas in a complementary way – to reduce resistance to change, by helping ensure that those disadvantaged by one reform benefit from another, and to foster synergies between policies.
Governments are also encouraged to rely, as much as possible, on generally applicable measures to address adjustment costs, including through the tax and social security system, for reasons of both equity and efficiency.
The study finally underscores that multilateral efforts including through the Doha Development Agenda are of particular importance in promoting the mutual interests of trade liberalisation, locking-in domestic reform and providing a roadmap for future liberalisation and reform.
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