The determinants of economic success: luck and policy

A recent World Bank study shows that countries' economic growth rates are highly volatile due to the presence of "luck' - shocks such as shifts in terms of trade. But effective short- and long-term policies can help offset the effects of bad luck and create economic success stories. Good long-term sectoral and macroeconomic policies that lead to high educational enrollment rates, deep financial markets, increased equipment investment, stable and undistorted prices, and realistic interest rates are the only convincing foundation for future growth. -from Authors