Country Economic Memorandum

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  • Publication
    From Swimming in Sand to High and Sustainable Growth: A Roadmap to Reduce Distortions in the Allocation of Resources and Talent in the Pakistani Economy
    (World Bank, Washington, DC, 2022) World Bank Group
    This report focuses on growth in Pakistan, and on key aspects of its proximate determinants: productivity, capital, and talent accumulation. Productivity is crucial in accounting for differences in standards of living across countries and time. In addition, and particularly at the level of development of Pakistan, factor accumulation, investment, and human capital, also matters. Specific and policy relevant questions around these broad themes are this report's center of attention. The underlying framework of analysis and orientation of public policy recommendations is what is known as the 'ABC' of growth. This 'ABC' implies improving allocative efficiency of resources and talent, encouraging business-to-business connections and spillovers, and strengthening firms' capabilities. Public policies oriented to create an enabling environment around these three pillars will be powerful in boosting sustainable growth. However, the efficient allocation of talent and resources, and the business-to business interactions leading to spillovers and the conditions to upgrade capabilities, are limited by economic distortions (or market failures) that inhibit the growth process, sometimes making it as difficult as swimming in sand.
  • Publication
    Poland Country Economic Memorandum: The Green Transformation in Poland – Opportunities and Challenges for Economic Growth
    (Washington, DC, 2022) World Bank
    Poland’s economic development story is one of success: since the early 1990s, the country has transitioned to a market economy, integrated into the European Union economy and global supply chains and sustained robust growth, avoiding the middle-income trap and increasing the resilience of its economy. Poland has sustained strong growth over the past three decades, making substantial advances in converging towards the European Union (EU-27) average per capita income, although there is still a considerable gap in both productivity and income convergence when compared with aspirational peers. Poland successfully transitioned to an EU-integrated market economy, moving from upper middle-income to high-income status in less than a decade and a half. Its economy underwent a deep structural transformation, supported by cost-competitiveness, and is now well-diversified and more resilient to shocks. Long-term growth has been supported by increased total factor productivity (TFP), grounded in efficiency gains, although capital accumulation has remained the main contributor to growth. While capital deepening did occur, investments in Information Communication and Technology (ICT) and in intangible assets that have high growth potential lagged those of peers. A skilled labor force has contributed more to growth in the case of Poland than it did in peer countries. The COVID-19 pandemic, however, has resulted in important learning losses, as observed throughout the world, and together with reversals in education reforms in recent years could weigh down on labor quality and productivity in the future.COVID-19