Developing countries told to adopt realistic macroeconomic models

Luanda – Developing countries, such as Angola, are expected to launch macroeconomic models adapted to the local reality to ensure good implementation of efficient public services.

This was stressed by the Colombian economist, Mario Galindo, on Tuesday in Luanda.

Mario Galindo was speaking to Angop on the fringes of a lecture on “Macroeconomic models for developing countries, sponsored by the Faculty of Economics of the Agostinho Neto University (UAN).

The economist underlined that the economies of developing countries are different from those of industrialised countries, adding that one should not copy them in every detail.

The expert Mario Galindo recognised the efforts made by governments and businessmen, focused on quick answers, but warned that science does not give quick answers.”

According to him, developing countries are very concerned about economic aggregates, inflation, growth rate, but they forget that the economies of their countries are different from those of industrialised countries.

He also acknowledged that macroeconomic phenomena in developing countries are similar to those of industrialised ones.

“For many years it was thought that in macroeconomic theory one should not apply the same methods applied to the industrialised countries, because it was thought that economic agents did not act in rational way”, he noted.

He recalled that nowhere in the world do people like to pay taxes. But governments need to collect taxes, and it is necessary to realize the motivations that lead people in each country to pay taxes.

As for the economy of Angola, Mario Galindo said there is a very large import component, calling for the need to diversify the economy to avoid dependence on imports.

The lecture addressed aspects related to stabilisation of inflation, macroeconomic policies, convergence, growth and corruption, as well as informal economy and development.

Source: Angola Press News Agency