Structural reforms play an essential role in ensuring long-term economic growth. However, their implementation often faces a significant obstacle — social resistance.
The IMF’s “World Economic Outlook, October 2024” report highlights this issue extensively. Chapter 3 outlines the reasons and factors affecting public acceptance of reforms and offers solutions to overcome these challenges.
Resistance to reforms stems from various factors. First, people often perceive changes as a threat to their well-being. Second, the level of trust in the government and its ability to fairly distribute the benefits of reforms plays a crucial role. The report emphasizes that effective communication is important but not enough. Building trust between the state and its citizens is essential. This requires active public engagement at all stages, from planning to implementing reforms.
According to IMF data, the most successful reform examples included compensatory measures. These measures help mitigate the negative impacts on vulnerable groups. For instance, in developing economies, providing subsidies and temporary income support has helped reduce resistance. However, financial support alone is insufficient. The government must demonstrate a commitment to considering the interests of various groups in society.
Implementing reforms during a crisis requires a special approach. In recent years, many countries’ economies have faced numerous shocks — the pandemic, geopolitical conflicts, and rising energy prices. All of this increased social tension and reduced citizens’ willingness to support reforms.
The IMF notes that for reforms to be successful, governments need to use comprehensive strategies. These strategies should include transparency, citizen feedback, and the implementation of compensatory mechanisms.
The report presents data from 11 countries that have implemented structural reforms. The experience of these nations shows that success is possible even in the face of resistance. For example, strategies based on informing the public about the benefits and goals of reforms helped increase support. However, simply providing information is not enough. Actions are needed to reinforce confidence that the benefits will be fairly distributed.
Why do people resist reforms? The IMF report presents survey results showing the reasons behind negative attitudes. The main reasons include the fear of job loss, concerns about growing inequality, and the belief that reforms will only benefit a limited group. These concerns are particularly pronounced in countries with high levels of social polarization. In such conditions, governments need to take measures that reduce dissatisfaction and strengthen social protection.
Promoting reforms requires clear strategies. The IMF underscores the importance of tools that build public trust. These include creating public advisory councils, involving independent experts, and holding public hearings. It is essential for citizens to feel that their opinions are considered and that they can influence the process.
A comprehensive approach involves measures aimed at mitigating the negative effects of reforms. The report notes that the use of compensatory measures, such as temporary subsidies and retraining programs, helps reduce social tension. For example, in European countries dealing with an influx of refugees, integration programs have proven effective. Such measures can serve as a model for other countries implementing reforms.
Despite the difficulties, reforms are necessary for long-term growth. The report emphasizes that without reforms, many economies will face problems such as an aging population, declining productivity, and weak economic growth. At the same time, reforms should be carried out with social realities in mind. In conditions where public dissatisfaction can lead to protests and political instability, governments must act with caution.
The IMF states that the success of reforms depends on the authorities’ ability to adapt to circumstances. For example, when implementing pension reforms, it is important to consider the level of trust in the social protection system. If citizens feel that their rights are being restricted, resistance is inevitable. Therefore, compensatory measures should be planned in advance, and their implementation mechanisms should be well thought out.
The conclusions of the report are clear: to ensure public acceptance of reforms, mere information is not enough. A system of measures that includes public participation, transparency, and trust is necessary. Only in this way can support for reforms be secured and a foundation for sustainable economic growth be established.
Prepared by: Lina Yegil kizi, expert of the Economy.kz portal
