Beyond central bank reform, it is not clear
whether there is a general EM story that can be
told about institutional reform.
What can be said
is that countries that have pursued reforms to
improve their institutional quality, strengthen
their weak fnancial and goods markets and
reduce their high level of state intervention in
their economies have benefted. Just examining
the decade to 2016, it is possible to detect a
positive relation between real economic growth
and structural performance indicators.
At the top
of the reforms list are Hong Kong and Singapore.
Both countries boosted their scores in the
structural reforms index by up to one-fifth to
about 1.5 and both experienced real economic
growth of between 2.5 and 4.5 per cent each
year. In contrast, countries such as Venezuela
and Argentina saw their structural index scores
fall further negative and both saw their
economies grow between zero and two per cent
in real terms