Chapter 1

Conclusion

This chapter has summarised the main structural reform developments over the past year and provided a perspective on the remaining transition challenges facing the EBRD's traditional countries of operations and those in the SEMED region where the Bank is extending its activities. On the positive side, it remains the case as in all previous years that there has been more progress in reform than reversal, and any wholesale backsliding seems unlikely. However, further major advances are still necessary to underpin and ensure future sustainable growth. Although major, irreversible backsliding in reforms has not happened and is unlikely to happen in the future, the big risk is still that stalled or feeble reforms will keep the region's growth well below potential for the foreseeable future.