The head of the International Monetary Fund, Christine Lagarde, has issued a stark warning that living standards will fall around the world unless governments take urgent action to increase productivity by investing in education, cutting red tape and incentivising research and development.

Whether or not, you agree that her prescription is what is needed to improve productivity – or is complete, it is good that someone so influential is spreading the message about the need for productivity development.

I actually think she has got it mostly right – I would add infrastructure development, and would add training to education … but her summary is pretty effective and ‘chimes’ quite well with the findings of the recent World Productivity Congress.