Policy Reform and the Price of Gradualism

The challenges of ageing, migration and globalisation are often perceived as internal and external threats that eventually will transform our socio-economic system. From a dynamic perspective however, every change offers opportunities. Johan Albrecht explains that as societies and economies can adapt to new circumstances and conditions, policymakers need to decide on how to guide and steer the necessary adaptation processes. Without reforms, the unavoidable adaptation is only postponed and will eventually turn out to be much more expensive. In response to the current reform challenge, Belgian pragmatism has so far favoured gradualism. Several analyses from independent organisations not only highlight the risks from the soft and gradual approach; they show that ambitious reforms bring net-gains for all societal groups.