How can countries achieve stronger growth and raise living standards? This question is central to economic policy and remains a priority for governments worldwide.
A wide range of factors shape long-term growth outcomes, including macroeconomic stability, efficient tax systems, good governance and strong institutions, high-quality infrastructure, human capital, flexible and efficient regulatory environments, or open and competitive markets. While these factors interact in complex ways, they are often analysed in isolation, even though evidence suggests that comprehensive reform packages often deliver larger and more durable gains than stand-alone policy interventions.
The F4GC Framework provides a structured lens to examine these policy interactions and identify reform packages that can support stronger growth and more competitive economies. The framework builds on a high-level typology that distinguishes between three broad sets of policies: Enabling Factors, Market Incentives and Targeted Policies. Enabling Factors and Market Incentives consider policies that are largely horizontal in nature and that shape economy-wide framework conditions. Targeted Policies, by contrast, are designed to address specific market failures and externalities that cannot be effectively tackled through horizontal measures alone, including in areas such as innovation, energy and the environment. The three policy sets are closely interconnected, as the effectiveness of targeted interventions depends critically on the quality of the underlying horizontal policies.
