The challenge:
The heterogeneity of our partner countries is reflected in the wide variety of challenges faced by their economic policies. The countries can be roughly divided into three groups:
- Economies in the least developed countries demonstrate little integration into world mar-kets. Large segments of the population work in the informal sector and in subsistence ag-riculture. Poverty is widespread in these countries, although poverty reduction strategies are being put in place.
- Newly industrializing and other countries with per capita incomes in the middle range are often highly integrated into world markets. They are often subject to enormous challenges resulting from globalization: the competitiveness and capacity of the private sector must be increased, while harmful external effects on the environment are reduced.
- In transition countries, growth and poverty reduction depend on the creation of appropri-ate economic institutions in both the public and private sectors. These must be able to guide the process of transformation and ensure economic efficiency, while finding solu-tions to the social problems that arise.
The objective:
Reducing poverty has been the most important goal of development policy since the mid-1990s. The German government is committed to fighting global poverty, particularly in accor-dance with the Program of Action 2015. Therefore, GTZ activities in the area of economic policy aim to:
- increase economic growth in partner countries,
- enable poor segments of the population to increase their productive participation in growth, and thus
- reduce poverty.
Our services:
By building appropriate capacities – e.g. economic analysis skills, strengthening of basic data, and improving the legal framework – GTZ is assisting partner countries to draft and implement appropriate economic policy measures.
