Productivity growth has fallen persistently over the last decade. Measures to combat corruption, strengthen the rule of law, reduce state control, and reinforce skills and innovation would raise productivity. While red tape has been reduced recently, more progress is needed at the regional level. Making the economy less dependent on rents from natural resource extraction will be key to stronger and more stable income growth.
- Continue fighting corruption, focusing on transparency and accountability mechanisms in the public sector and strengthening judicial independence.
- Continue reducing administrative barriers. Push ahead with privatisation of state-owned banks and other state-owned enterprises (SOEs). Shorten the list of strategic sectors with prior approval required for foreign investment and streamline the approval process.
- Raise the efficiency of infrastructure spending, promote competition in the transport sector and increase co-ordination to address urban transport challenges.
- Strengthen life-long learning and vocational education. Increase overall education funding, while continuing to restructure education institutions.
- Continue broad-based support for innovation and the adoption of new technologies, in particular to improve energy efficiency. Shift research from the Academy of Science to universities and increase competitive grant funding.