Accounting for slow productivity growth in North Africa: the role of policy distortions

Abstract

This policy brief examines the slow productivity growth in North Africa, attributing it to significant policy distortions stemming from both market and government failures. It highlights the critical role of government failures in hindering structural transformation and total factor productivity growth in the region. Key recommendations are provided to address these failures, emphasizing the importance of transparency, inclusion, evaluation, and capacity building in policy design and implementation. The brief underscores the necessity of improving governance quality to mitigate policy distortions and enhance economic development, particularly in the context of North Africa's unique challenges.