"The most effective way to promote investment, innovation, and growt h is to provide a supportive policy environment and institutions. The e ssentials are macroeconomic stability, undistorted prices, well-defined and well-enforced property rights, an environment that keeps business costs low, and political institutions that foster social consensus and political stability. Government should also provide adequate infrastruc ture and human capital investment-- whether as public projects or with the halp of the private sector"--Cover.

"This paper was presented at the conference 'Economic Growth and Lon g-Term Development' held in El Escorial, July 11-13, 1994."

"November 1994"--Cover.

Includes bibliographical references (p. 42-48).