Beyond convergence: Poland and Turkey en route to high income

Abstract

This paper compares and contrasts the policy reform experiences of Poland and Turkey en route tohigh income. For both countries, globalization has presented unprecedented opportunities to catch up,unleased by integration into European and global markets and the establishment of macroeconomicdiscipline. These opportunities were reinforced by the creation of economic institutions to strengthencompetition and support private entrepreneurship, catalyzed by the convergence process with theEuropean Union. Both Poland and Turkey have shown resilience following the 2008 global crisis, butcontinued success will require renewed structural reform measures. Dealing with the challenging ofaging while at the same timeŞnding a way to sustain productivity growth through greater domesticinnovation is shaping Poland’s policy agenda. Turkey's structural and demographic potential as well asits strategic location between the markets of Europe and Asia offers attractive value proposition toinvestors, which could be further enhanced with improvements in business regulations and economicgovernance