Throughout East Asia, the growth process and its sources are changing in a number of important respects, especially for middle- and high-income economies. Growth is increasingly coming from the strength of innovative activities in these economies rather than from factor accumulation as in the past....

Although the relative size of the public sector has been much reduced worldwide since the early 1980s, it remains the dominant borrower from the banking system and responsible for the majority of the non-performing assets of banks....