Which Countries are Prepared for Change? A Forward-Looking View

Abstract

Increasingly rapid technological advances, the mobility of people and ideas, and the growing severity of global shocks, such as pandemics and climate-related disasters,will likely favor countries that are able to respond effectively and decisively to change. The evidence from the Change-Readiness Index (CRI) supports this view and shows that the right mix of policies and institutions builds on a strong foundation of government, enterprise and civil-society capabilities. When governments are effective, markets function well, and civil society has a strong voice; countries have the capabilities necessary to create sustained, inclusive growth. Data for 4 countries is examined to look for success factors in adapting to change.

Keywords: shocks, developing economies, change readiness

JEL Classification: P51