For the successful and proper functioning of the economy, the interplay between the micro and macro segments of the economy is mandatory. The relationship between the two phenomena intertwines to bring about the desired objective of a nation. At the micro level of the economy lies the consumers and the private firms engaged in the consumption and the production of goods and services. The generalization of the activities of the two entities culminates to the final status of the macro level. Whilst the external environment does have an impact on the performance of the economy, it is the cumulative effect of both microeconomic forces and the performance of enterprises that supports the macro level of the larger economy. Consequently, any dismal performance of the micro economy need not directed to the macro level of the economy.

This paper is explanatory in nature, and it strives to show the relationship between actions at the micro and macro segments of the economy explicitly. Particularly, the paper explores the

Globally, there lies the notion that ineffective performance at the indaividual level can blame on the external environment. However, contrary to the expectations, the cumulative actions of individual firms and businesses feed the macro economy, resulting to a strong or weak economy depending on the nature of the microeconomic players shaping the macro economy. The macroeconomic environment is inevitable for corporate, national competency and economic recovery.

As for the aggregate economy, the provision of relevant information, effective demand, adequate supply, property rights and minimization of corruption are the key determinants of the national domestic product per capita, whose impact outmatches the human resource role in the economy. Consequently, if the actions of the micro players feed into the total system, most of the business environment will receive direct influences of the microcosmic actions. Therefore, the whole concept is a trickle up program that always remains at work.

The provision of a stable political system and the enactment of sound and practical macrocosmic conditions are the principles of economic growth and development. However, from studies conducted by many scholars, the idea is a necessity for the anticipated economic growth and development, and it lacks the necessary push to be sufficient. Aggregately, the results of empirical studies in many countries challenge the whole concept that economic growth is an inevitable subject to working macroeconomic policies institutionalization.

Though multilateral bodies like the World Bank are active advocates of macro-economic reforms, most studies indicate that microcosmic reforms are also necessary. Without the necessary micro changes, the expected growth in the gross domestic capital per capita resulting from effective macro-economic reforms will be out of proportions. As a result, there lies the urgency to expedite the integration of both macroeconomic and competitive analyses into the aggregate reform process. Consequently, if the same economic reforms align themselves to the World Bank-version of microeconomic reforms, then the world will still experience a continuous stream of successful disappointments.

In conclusion, macro-economic reforms are not always there to help in the economic reform process. As from existing literature, this paper establishes the underlying relation that exists between the micro level and aggregate level of any country’s economy. However, the article also establishes that this cordial relationship still needs more research to enhance the case for microeconomic level changes in the world.