The combination of weak global commodity prices and recessions in several major emerging economies has resulted in renewed calls for fiscal consolidation. However, the austerity policies that dominated in many developed countries after the global financial and economic crisis of 2008 have, by and large, been proven to have been counterproductive: not only in terms of debt sustainability, but also as means of boosting employment growth.

As a number of emerging countries grapple with revenue constraints and weak growth, it is important to learn lessons from recent experience in this area, and to bear in mind that fiscal and employment goals can be achieved together.

In this regard, both the pace and nature of fiscal consolidation are of the utmost importance.