World Bank2013-08-282013-08-282001-10-26https://hdl.handle.net/10986/15475Over the last thirty years, Bahia has transformed itself from a somnolent rural economy to the leading manufacturing state of the Northeast. In the process, the state government has developed a reputation as a modernizing, fiscally responsible administration. But problems remain. Growth rates, even since the last recession, have been modest. Poverty remains widespread. The aim of this report is to define ways which the state can take to provide the basis for sustained, broad-based economic growth. Overall, the report is optimistic about Bahia's prospects. The economy is increasingly diversified. New entrants to the labor force, while still under-skilled, are better educated than their forebears. The state's strong fiscal condition gives it room to address gaps in social services. But a less capital-biased growth strategy, combined with 1) federal-level reforms in fiscal policy, labor legislation, and pension regulation; and 2) state-level reforms in the management of social services, would enhance the state's growth prospects and hasten the reduction of poverty.en-USCC BY 3.0 IGOECONOMIC GROWTHLABOR FORCE POPULATIONPENSION REFORMPOVERTYLABOR REGULATIONSINDUSTRIAL POLICIESQUALITY OF EDUCATIONEDUCATIONAL MANAGEMENTFEDERAL GOVERNMENTSHEALTH INDICATORSCHILDREN NUTRITIONROAD TRANSPORTATION SYSTEMSRURAL DEVELOPMENTRURAL CREDITCHILD LABORVALUE ADDED TAXESTAX ADMINISTRATIONDEBTPUBLIC EXPENDITURESPOVERTY REDUCTIONSOCIAL SERVICES ACCOUNTABILITYAGRICULTURAL PRODUCTIONAGRICULTUREAIRALLOCATION OF RESOURCESASSET SALESAUTHORITYBIRTH RATECLIMATECLIMATIC CONDITIONSCLINICSCOST OF CAPITALDEBTDECENTRALIZATIONDEMOGRAPHICSDEPOSITSDEVELOPMENT PROJECTSDUAL ECONOMYECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC RESEARCHECONOMIES OF SCALEECONOMISTSEMPLOYMENTEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORTSFARMSFEDERAL GOVERNMENTFEDERAL LEGISLATIONFINANCIAL CRISESFISCALFISCAL DEFICITSFISCAL INCENTIVESFISCAL POLICIESFISCAL POLICYFISCAL SITUATIONFISCAL STANCEFISCAL YEARFOREIGN DEBTFOREIGN EXCHANGEFOREIGN MARKETSFORESTRYGDPHEALTH CAREHEALTH INDICATORSHEALTH OUTCOMESHOSPITALSHUMAN CAPITALILLITERACYIMPORTSINCOMEINDUSTRIALIZATIONINFLATIONINTEREST RATESINTERMEDIATE INPUTSISOLATIONLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLEGISLATIONLIVING CONDITIONSMARKETINGMIGRATIONMINIMUM WAGESMONETARY POLICIESMONETARY POLICYMORTALITYMOTIVATIONNEW ENTRANTSOILPENSIONSPER CAPITA INCOMEPER CAPITA INCOMESPOLITICAL ECONOMYPOPULATION GROWTHPOVERTY LINEPRIVATIZATIONPRODUCERSPUBLIC ADMINISTRATIONSAVINGSSAVINGS SCHEMESSCHOOLSSOCIAL ASSISTANCESOCIAL RESEARCHSOCIAL SECTORSSOCIAL SERVICESSTATE ENTERPRISESSTATE GOVERNMENTTAX INCENTIVESTAX REVENUESTRADE POLICIESTRADE REFORMSTRANSPORTURBANIZATIONVALUE ADDEDWAGE RATESWAGESWORKERSWorld Bank10.1596/15475