Publications -

Growing with Productivity: An Agenda for the Andean Region

InterAmerican Development Bank (IDB)

The document diagnoses the factors limiting productivity in the Andean region and a route map for boosting growth, based on greater investment in physical capital, with an appropriate balance between public and private investment, together with labor, tax, financial and export reforms to improve productivity.

Among other symptoms of low productivity, it identifies the following:

  • Micro enterprises with low efficiency rates and low likelihood of survival
  • High level of employment in the informal sector and self-employment
  • Lack of development in the non-traditional export sector
  • Low penetration of financial products and services, which limits access to enterprises with productive potential.

Finally, the study puts forward a series of recommended public policies to mitigate these distortions and correct market faults, so that important productivity gains can be realized and the process of development and convergence of the region's income towards that of advanced economies is given greater momentum.