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This Selected Issues paper explores the question of what kind of structural policies could boost productivity growth in small middle-income countries (SMICs), including Namibia. The findings suggest that although macroeconomic stability and trade openness are necessary for productivity growth, they are not sufficient. SMICs need to improve the quality of their public spending, most notably on education to minimize the skill mismatch in the labor market, reduce the regulatory burden on firms, improve access to finance by small and medium-sized enterprises, and create the enabling environment to facilitate structural transformation in these economies.
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