Progress in transition and the link to growth

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The transition countries continued to make progress in structural and institutional reform over the past year, but with different levels of success. The SEE countries made the most significant headway, CEB made only incremental improvements while progress in the CIS countries was modest. In most countries access to finance was improved by a strengthening of local banks and better supervision. There is evidence that a commitment to reform and sound fiscal policies can lead to stronger growth over the longer term, prompting further reform efforts.

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