July 27, 2017

Dubrovnik, Croatia. Countries in the region should continue working on good governance for higher growth 

In many ways, Central, Eastern, and Southeastern Europe is an incredible success story. In less than a generation, countries moved from centrally-planned economies to market-based ones—transforming their legal systems, public administrations, and economic policies, to name a few key elements. Yet, for the sake of higher growth in the future, countries need to continue enhancing institutions and good governance.

Enhancing institutions and good governance—the efficient governing of a country—remains at the core of the reform agenda to raise prosperity to advanced European living standards. Many countries have joined the European Union, a vital anchor toward these goals, and others are aspiring to join.

Uneven convergence

Average income per capita in real terms (without inflation) in this region has almost doubled over the past two decades and near-term growth in most countries is robust. But convergence with advanced Europe has slowed since the global financial crisis. Growth potential has almost halved from its pre-crisis level—largely because of a slowdown in productivity growth. In addition, many higher-skilled workers have left this region in search of better opportunities abroad. Den Rest des Beitrags lesen »