Togo Growth Diagnostics

Garrido, Leonardo; Lundstrom, Susanna

Togo Growth Diagnostics

Autores

Descripción

This 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.

Palabras clave

ACCESS TO CAPITAL, ACCESS TO FINANCE, AGGREGATE DEMAND, AGGREGATE SUPPLY, AGRICULTURAL SECTOR, AGRICULTURE, ANNUAL GROWTH, ARREARS, AVERAGE GROWTH, AVERAGE GROWTH RATE, AVERAGE INCOME, AVERAGE INCOME LEVEL, AVERAGE PRODUCTIVITY, BANKING SECTOR, BANKS, BENCHMARK, BENCHMARKING, BENCHMARKS, BUSINESS ENTERPRISE, BUSINESS ENTERPRISES, CAPITAL ACCOUNT, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL INVESTMENTS, CAPITAL MARKET, CAPITAL MARKETS, CAPITAL STOCK, CAPITAL STOCKS, CENTRAL BANK, COMPARATIVE ADVANTAGE, COMPARATOR COUNTRIES, COMPETITIVENESS, CORRUPTION, COST OF CAPITAL, COUNTRY COMPARISONS, COUNTRY SPECIFIC, CREDIT CONSTRAINT, CREDIT MARKET, CREDIT WORTHINESS, CROSS COUNTRY, CURRENT ACCOUNT, DATA AVAILABILITY, DEBT, DEBT MATURITY, DEBT RELIEF, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPMENT POLICY, DISCOUNT RATE, DIVERSIFICATION, DOMESTIC CREDIT, DOMESTIC SAVINGS, DONOR FUNDING, DONOR SUPPORT, DYNAMIC ANALYSIS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC DECLINE, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC LITERATURE, ECONOMIC OPPORTUNITIES, ECONOMIC PERFORMANCE, ECONOMIC POLICIES, ECONOMIC POLICY, ECONOMIC REFORMS, ECONOMIC SECTORS, ECONOMIC STRUCTURE, ECONOMIC STRUCTURES, EDUCATION LEVEL, EDUCATION LEVELS, EDUCATIONAL LEVEL, EMPLOYMENT DYNAMICS, EMPLOYMENT GROWTH, EMPLOYMENT OPPORTUNITIES, ENDOWMENTS, ENROLLMENT, ENTREPRENEURSHIP, EXCHANGE RATE, EXCHANGE RATE REGIME, EXPECTED RETURNS, EXPENDITURE, EXPLANATORY VARIABLES, EXPORT DIVERSIFICATION, EXPORT GROWTH, EXPORTS, EXTERNAL CAPITAL, EXTERNALITIES, FAMILY FARMS, FARMERS, FINANCIAL ACCOUNT, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL MARKET, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCING COSTS, FISCAL POLICIES, FIXED CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN EXCHANGE, FOREIGN INVESTMENT, GDP, GDP PER CAPITA, GOVERNMENT EXPENDITURES, GOVERNMENT INTERVENTIONS, GROSS DOMESTIC PRODUCT, GROSS FIXED CAPITAL FORMATION, GROSS NATIONAL SAVINGS, GROSS VALUE, GROWTH PROSPECTS, GROWTH RATE, GROWTH RATES, HEADCOUNT RATIO, HIGH GROWTH, HIGH GROWTH RATE, HIGHER EDUCATION LEVEL, HUMAN CAPITAL, HUMAN DEVELOPMENT, INCOME, INCOME DISTRIBUTION, INCOME GROUP, INCOME GROUPS, INCOME GROWTH, INCOME GROWTH RATE, INCOME LEVELS, INDEPENDENT VARIABLES, INFORMATION TECHNOLOGY, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL TRADE, INVENTORY, INVESTMENT CLIMATE, INVESTMENT RATIO, JOB OPPORTUNITIES, LABOR FORCE, LABOR FORCE PARTICIPATION, LANDLOCKED COUNTRIES, LEGAL TENDER, LIMITED ACCESS, LIQUIDITY, LIVING STANDARDS, MACRO STABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET FAILURES, MEDIUM TERM, MIDDLE INCOME COUNTRY, MIGRATION, MONETARY POLICIES, MONETARY POLICY, OPPORTUNITY COST, PER CAPITA GROWTH, PER CAPITA INCOME, PHYSICAL CAPITAL, POLICY CHANGE, POLICY RESEARCH, POLITICAL INSTABILITY, POLITICAL STABILITY, POLITICAL SUPPORT, POOR COUNTRIES, POOR PEOPLE, POVERTY LINE, POVERTY REDUCTION, POVERTY TRAPS, PRICE INCREASES, PRIMARY EDUCATION, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC OFFICIALS, PUBLIC SECTOR, PURCHASING POWER, PURCHASING POWER PARITY, RAPID GROWTH, REAL EXCHANGE RATE, REAL GDP, RECESSION, REMITTANCES, RURAL AREAS, RURAL POOR, SAVING RATE, SECTOR ACTIVITIES, SECTORAL COMPOSITION, SELF EMPLOYMENT, SIGNIFICANT IMPACT, SOURCE OF INFORMATION, SOURCES OF FINANCE, STRUCTURAL ADJUSTMENT, STRUCTURAL BOTTLENECKS, SUSTAINABLE GROWTH, TAXATION, TECHNOLOGY FRONTIER, TOTAL FACTOR PRODUCTIVITY, TRADE BALANCE, TRADE POLICIES, TRANSPORT, UNEMPLOYMENT, UNEMPLOYMENT RATES, UNION, URBAN AREAS, URBAN POOR, URBAN WORKERS, VALUE ADDED, WOMAN