A country’s economic policy affects the nature, size and distribution of economic growth. In order to reduce poverty and social inequality, economic policy must be formulated so that disadvantaged population groups also have an opportunity to participate actively in growth and market processes (broad-based growth).
 
Taking a holistic view of the social and ecological market economy, economic policy includes the basic issues of economic and social order. Economic policy sets the framework for private sector activity (business and investment climate, fair competition policy, commercial law), for the functionality of the financial system (monetary and foreign exchange policy, regulation of financial markets) and for the labour market. In addition, economic policy helps determine the scope for action in social sectors such as education, health and social security.
 
The GIZ approach to advisory services is based on strengthening the potential and competences of public and private sector institutions in DC partner countries so that they can shape corresponding economic reforms. In the middle income countries, the focus is on the broader impact of growth and lower consumption of resources. By contrast, the least developed countries must expand the basis for their economic growth and conserve their natural resources.
 
Drawing on its many years of experience, GIZ supports its economic policy partners in over 30 countries worldwide through advisory services and packages of measures tailored to the specific conditions in a country.