Garrido, LeonardoLundstrom, Susanna2012-03-192012-03-192010-12-01https://hdl.handle.net/10986/3993This paper starts by analyzing past growth trends and sources of growth in Togo, as well as the structure of the economic actors in the country. The second part explores the current binding constraints to rapid and sustainable growth. For increased international competitiveness and growth, Togo will need to raise efforts to streamline its costly and cumbersome business procedures. However, for this to have a sizable impact, Togo must prove to potential investors that political stability is permanent and that corruption, poor budget execution and mismanagement of state owned enterprises belongs to the past. As a result of the new government's reform agenda and the return of international aid, a window of opportunities for high returns to the still limited public investments has opened up. This is especially true in infrastructure and connectivity services, which would not only take advantage of Togo's geographical location as a regional hub, but also make growth in Togo more inclusive. And as economic opportunities arise for the private sector, there is a need to restructure the banking sector, which has already started, to smooth distortions in the credit market. Promising sectors within agriculture that are vital to economic growth, employment opportunities, and poverty reduction remain important, but will need to overcome a number of coordination failures. Not least due to the history of government interventions causing economic distortions, the government must allow for a stronger role for private operators and encourage it wherever possible. Finally, although education does not exhibit constraints to economic activity in Togo today, it is of importance to improve the quality of education, not least to profit from and catalyze the opportunities related to Togo's potential as a regional hub.CC BY 3.0 IGOACCESS TO CAPITALACCESS TO FINANCEAGGREGATE DEMANDAGGREGATE SUPPLYAGRICULTURAL SECTORAGRICULTUREANNUAL GROWTHARREARSAVERAGE GROWTHAVERAGE GROWTH RATEAVERAGE INCOMEAVERAGE INCOME LEVELAVERAGE PRODUCTIVITYBANKING SECTORBANKSBENCHMARKBENCHMARKINGBENCHMARKSBUSINESS ENTERPRISEBUSINESS ENTERPRISESCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL MARKETSCAPITAL STOCKCAPITAL STOCKSCENTRAL BANKCOMPARATIVE ADVANTAGECOMPARATOR COUNTRIESCOMPETITIVENESSCORRUPTIONCOST OF CAPITALCOUNTRY COMPARISONSCOUNTRY SPECIFICCREDIT CONSTRAINTCREDIT MARKETCREDIT WORTHINESSCROSS COUNTRYCURRENT ACCOUNTDATA AVAILABILITYDEBTDEBT MATURITYDEBT RELIEFDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT POLICYDISCOUNT RATEDIVERSIFICATIONDOMESTIC CREDITDOMESTIC SAVINGSDONOR FUNDINGDONOR SUPPORTDYNAMIC ANALYSISECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CRISISECONOMIC DECLINEECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC LITERATUREECONOMIC OPPORTUNITIESECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC POLICYECONOMIC REFORMSECONOMIC SECTORSECONOMIC STRUCTUREECONOMIC STRUCTURESEDUCATION LEVELEDUCATION LEVELSEDUCATIONAL LEVELEMPLOYMENT DYNAMICSEMPLOYMENT GROWTHEMPLOYMENT OPPORTUNITIESENDOWMENTSENROLLMENTENTREPRENEURSHIPEXCHANGE RATEEXCHANGE RATE REGIMEEXPECTED RETURNSEXPENDITUREEXPLANATORY VARIABLESEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORTSEXTERNAL CAPITALEXTERNALITIESFAMILY FARMSFARMERSFINANCIAL ACCOUNTFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL SECTORFINANCIAL SERVICESFINANCING COSTSFISCAL POLICIESFIXED CAPITALFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN EXCHANGEFOREIGN INVESTMENTGDPGDP PER CAPITAGOVERNMENT EXPENDITURESGOVERNMENT INTERVENTIONSGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROSS NATIONAL SAVINGSGROSS VALUEGROWTH PROSPECTSGROWTH RATEGROWTH RATESHEADCOUNT RATIOHIGH GROWTHHIGH GROWTH RATEHIGHER EDUCATION LEVELHUMAN CAPITALHUMAN DEVELOPMENTINCOMEINCOME DISTRIBUTIONINCOME GROUPINCOME GROUPSINCOME GROWTHINCOME GROWTH RATEINCOME LEVELSINDEPENDENT VARIABLESINFORMATION TECHNOLOGYINTEREST RATEINTERNATIONAL BANKINTERNATIONAL TRADEINVENTORYINVESTMENT CLIMATEINVESTMENT RATIOJOB OPPORTUNITIESLABOR FORCELABOR FORCE PARTICIPATIONLANDLOCKED COUNTRIESLEGAL TENDERLIMITED ACCESSLIQUIDITYLIVING STANDARDSMACRO STABILITYMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET FAILURESMEDIUM TERMMIDDLE INCOME COUNTRYMIGRATIONMONETARY POLICIESMONETARY POLICYOPPORTUNITY COSTPER CAPITA GROWTHPER CAPITA INCOMEPHYSICAL CAPITALPOLICY CHANGEPOLICY RESEARCHPOLITICAL INSTABILITYPOLITICAL STABILITYPOLITICAL SUPPORTPOOR COUNTRIESPOOR PEOPLEPOVERTY LINEPOVERTY REDUCTIONPOVERTY TRAPSPRICE INCREASESPRIMARY EDUCATIONPRIVATE INVESTMENTPRIVATE INVESTMENTSPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC DEBTPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC OFFICIALSPUBLIC SECTORPURCHASING POWERPURCHASING POWER PARITYRAPID GROWTHREAL EXCHANGE RATEREAL GDPRECESSIONREMITTANCESRURAL AREASRURAL POORSAVING RATESECTOR ACTIVITIESSECTORAL COMPOSITIONSELF EMPLOYMENTSIGNIFICANT IMPACTSOURCE OF INFORMATIONSOURCES OF FINANCESTRUCTURAL ADJUSTMENTSTRUCTURAL BOTTLENECKSSUSTAINABLE GROWTHTAXATIONTECHNOLOGY FRONTIERTOTAL FACTOR PRODUCTIVITYTRADE BALANCETRADE POLICIESTRANSPORTUNEMPLOYMENTUNEMPLOYMENT RATESUNIONURBAN AREASURBAN POORURBAN WORKERSVALUE ADDEDWOMANWorld Bank10.1596/1813-9450-5509