This paper surveys the recent history of Western European growth. It concludes that this experience
has been disappointing and that further reforms are desirable in many countries. The requirement
for reform comes both from achieving ‘close-to-frontier’ status and from the opportunities provided
by the new technological era. The paper goes on to consider the effects that the current crisis may
have on medium-term growth rates. The lesson from the 1930s is that, if the current crisis leads to a
similarly bad downturn, the policy reaction in terms of greater state intervention will not be
conducive to improved growth prospects
