GOLDEN GROWTH
be had in noncontroversial areas such as digital trade. Between 1998 and 2003, many countries in Europe showed that product markets can be made more competitive. The momentum for market regulation was lost during the boom years between 2004 and 2008. Now it should be regained. As chapter 3 discusses, Europe has shown that trade in one modern service—banking—can grow quickly and contribute to economic growth.
Answers to questions on page 87
Factory Asia is growing faster, but goods trade in Europe is more sophisticated. The single market is working quite well for traditional services such as travel and transport, but it is underperforming in modern services such as insurance, information technology, and other business services. The European Union’s hobble Th E U i ’ agricultural i lt l policies li i h bbl the extension of the single market to its neighbors, and Europe is missing an opportunity to improve the lives of 75 million people in the eastern partnership countries. 126