The National Democratic Institute for International Affairs and The Republic of Yemen Cosponsored by The United Nations Development Programme and The Government of Japan In Partnership with the Governments of: The Netherlands The United Kingdom The United States And the: Canadian International Development Agency Friedrich Ebert Stiftung International Labour Organization Irish Aid National Endowment for Democracy United States Agency for International Development Westminster Foundation for Democracy World Bank		Summary of Discussions & Recommendations for Action (results of small group discussions) TOPIC I: POLITICS OF HARD CHOICES Political Transition and Economic Restructuring Topic 1 - Topic 2 - Topic 3 - Topic 4 Purpose: To explore the challenges of implementing political and economic reforms and provide political tools necessary to achieve them. Overview: Implementing economic structural adjustment reforms is often one of the most difficult challenges that emerging democracies face. Governments need to balance the needs of citizens, particularly the poor, with the long-term benefits of "swallowing the bitter pill." There is no universal answer to the dilemma of whether political and economic reforms should be implemented consecutively or simultaneously or whether there is an appropriate timetable for the reform process. Regardless of the timing, courageous and unified leadership is needed to withstand the political pressure that structural adjustment often provokes. Recommendations: Governments should: Develop a consensus among political leaders on the importance of pursuing democratic and economic reforms. Government and opposition parties can forge agreements on essential reforms and protect these policies from day-to-day politics. Educate civil servants on reforms as a means of strengthening institutions and inspiring those who will actually implement many such measures. Increase public support for reform measures by promoting transparent and inclusive decision making. Communication should be frank and open about the inherent difficulties of economic restructuring, including a discussion of the tradeoffs. Build broad support for reforms among governing and opposition parties, women, trade unions, private sector actors, academics and workers Engage in long-term economic planning with patience and commitment, realizing that they will have to make more than one unpopular decision to implement economic reforms. Offset the negative effects of economic reforms by developing a social "safety net," (and/or poverty alleviation program) including public works projects and education, health care and welfare programs. International Financial Institutions (IFIs) should: Recognize the importance of engaging in dialogue with various sectors within the country, particularly think tanks. IFIs should increase efforts to work with domestic actors, including the government, to build understanding. Condition loans and debt relief on democratic as well as fiscal/economic criteria. Examples of such criteria include: decentralization, increased role of women in government, multi partisan support for restructuring and public participation. Conditions could be agreed between IFIs and newly emerging democracies. [ Introduction ] [ Declaration ] [ Conference Transcripts ] [ Discussion Board ] [ Forum Home ] [ NDI Home ]