Competition TheMissingIngredient forGrowth? LATINAMERICAANDTHECARIBBEANECONOMICREVIEW|APRIL2024 BLatinAmericaandtheCaribbeanEconomicReview|April2024 ©2024InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW,Washington,DC20433 Telephone:202-473-1000;Internet:www.worldbank.orgSomerightsreserved 123427262524 ThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracy,completeness,orcurrencyofthedataincludedinthisworkanddoesnotassumeresponsibilityforanyerrors,omissions,ordiscrepanciesintheinformation,orliabilitywithrespecttotheuseoforfailuretousetheinformation,methods,processes,orconclusionssetforth.Theboundaries,colors,denominations,links/footnotesandotherinformationshowninthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.ThecitationofworksauthoredbyothersdoesnotmeantheWorldBankendorsestheviewsexpressedbythoseauthorsorthecontentoftheirworks. NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesofTheWorldBank,allofwhicharespecificallyreserved. RightsandPermissions ThisworkisavailableundertheCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)http://creativecommons.org/licenses/by/3.0/igo.UndertheCreativeCommonsAttributionlicense,youarefreetocopy,distribute,transmit,andadaptthiswork,includingforcommercialpurposes,underthefollowingconditions: Attribution—Pleasecitetheworkasfollows:Maloney,William,PabloGarriga,MarcelaMeléndez,RaúlMorales,CharlJooste,JamesSampi,JorgeThompsonAraujo,andEkaterinaVostroknutova.2024.Competition:TheMissingIngredientforGrowth?LatinAmericaandtheCaribbeanEconomicReview(April2024).Washington,DC:WorldBank.doi:10.1596/978-1-4648-2111-0.License:CreativeCommonsAttributionCCBY3.0IGO Translations—Ifyoucreateatranslationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThistranslationwasnotcreatedbyTheWorldBankandshouldnotbeconsideredanofficialWorldBanktranslation.TheWorldBankshallnotbeliableforanycontentorerrorinthistranslation. Adaptations—Ifyoucreateanadaptationofthiswork,pleaseaddthefollowingdisclaimeralongwiththeattribution:ThisisanadaptationofanoriginalworkbyTheWorldBank.ViewsandopinionsexpressedintheadaptationarethesoleresponsibilityoftheauthororauthorsoftheadaptationandarenotendorsedbyTheWorldBank. Third-partycontent—TheWorldBankdoesnotnecessarilyowneachcomponentofthecontentcontainedwithinthework.TheWorldBankthereforedoesnotwarrantthattheuseofanythird-party-ownedindividualcomponentorpartcontainedintheworkwillnotinfringeontherightsofthosethirdparties.Theriskofclaimsresultingfromsuchinfringementrestssolelywithyou.Ifyouwishtore-useacomponentofthework,itisyourresponsibilitytodeterminewhetherpermissionisneededforthatre-useandtoobtainpermissionfromthecopyrightowner.Examplesofcomponentscaninclude,butarenotlimitedto,tables,figures,orimages. AllqueriesonrightsandlicensesshouldbeaddressedtoWorldBankPublications,TheWorldBank,1818HStreetNW,Washington,DC20433,USA;e-mail:pubrights@worldbank.org. ISBN(electronic):978-1-4648-2111-0DOI:10.1596/978-1-4648-2111-0 Coverdesign:AlejandroEspinosa/sonideas.comEdition:NancyMorrison Competition: TheMissingIngredient forGrowth? LATINAMERICAANDTHECARIBBEANECONOMICREVIEW|APRIL2024 Acknowledgements LatinAmericaandtheCaribbeanEconomicReview|April2024 III Acknowledgements ThisreportisaproductoftheChiefEconomistOfficeforLatinAmericaandtheCaribbeanattheWorldBank.ThepreparationofthereportwasledbyWilliamMaloney(ChiefEconomist),MarcelaMeléndezArjona(DeputyChiefEconomist),PabloGarriga(ResearchEconomist),andRaulMoralesLema(ResearchEconomist).ExcellentresearchandeditorialassistanceweredispensedbyPilarRuizOrrico(ResearchAnalyst),LauraTenjo(ResearchAnalyst),JoséAndréeCamarenaFonseca(ResearchAnalyst),PabloHernandezPedraza(ResearchAnalyst),NicolásPeña-Tenjo(Consultant),MaríaJoséUribe(Consultant),RafaelVilaroucaNunes(Consultant),JacquelineLarrabure(ProgramAssistant),CeciliaLim(Consultant),LeonardoPadovaniandMartinGianelli.OthercontributionswereprovidedbyAndrésZambrano(SeniorEconomist),GuillermoVuletin(SeniorEconomist),GuillermoRaulBeylis(SeniorEconomist)andNathalieGonzalez-Prieto(ResearchEconomist),allintheChiefEconomistOffice(LCRCE). Substantivecontributionsweremadefromacrosstheregionalteams: PovertyandEquity:CarlosRodriguezCastelan(PracticeManager,ELCPV),HugoÑopo(SeniorEconomist,ELCPV),HernanWinkler(SeniorEconomist,ELCPV),AnnaLuisaPaffhausen(Economist,ELCPV),TrinidadBereniceSaavedraFacusse(Economist,ELCPV),DianaMarcelaSanchezCastro(ResearchAnalyst,ELCPV),KellyYelitzaMontoyaMunoz(Consultant,ELCPV)andKarenYisethBarretoHerrera(Consultant,ELCPV). TheforthcomingWorldBankReport,CompetitionandProductivityGrowthinLatinAmericaandtheCaribbean,preparedbytheMTI-LACteam,andsomeofitsbackgroundpapersw