Academic research on the drivers of long-run growth shows that well-functioning institutions, high regulatory quality and good governance matter for economic growth and enable countries to over-perform in the long run2. This is because institutions and regulatory quality affect incentives for people and businesses to invest in physical and human capital, technology and the organization of production.
Therefore, particular emphasis should now be placed on improving the public administration, implementing the land registry, strengthening institutions, cutting red tape, lowering the regulatory burden and ensuring the predictability and stability of legislation, reducing entry barriers into network industries, retail trade and professional services as well as on enhancing judicial efficiency.