Sustained Productivity Growth Will Accelerate the Convergence toward Advanced Economies

countries in the Region are to improve incomes and move rapidly toward convergence with the advanced market economies. The growing and vibrant private sector in many of these countries will drive productivity enhancements, but public policies should promote these enhancements. The barriers to and the sources of productivity growth are, of course, different in each country and will require a differentiated mix of public policies. That mix is best developed at the national level by taking into account countryspecific initial conditions and institutions. How successful countries will be in moving forward on the path of prosperity will depend on how well they are able to design and implement public policies and compete among themselves to unleash the creativity of private markets.