6. GEMINI Policy Reform to Get the Mojo Back

There are many reform options for emerging markets to move forward in a world of chaos. There is good macroeconomic management, including fiscal, monetary, and debt policy, but there is an urgency of having a new model that includes the best parts of the Washington consensus and state capitalism. Continued focus on human development and financial sector expansion, including small and medium enterprises, while creating a strong regulatory framework, are key. Selective capital controls can help insulate countries from volatility. Building state capacity and having a well-managed industrial policy can help jumpstart growth. Reforms that invest in human capital and enhance productivity are important. Finally, it is key to manage climate change through increased climate finance, including from the private sector, and support renewables to steer the long-term energy transition away from fossil fuels. The role of China, India, South Africa, Russia, Saudi Arabia, and Indonesia will be especially important in the years to come to work with advanced economies to address both climate change mitigation and adaptation.