Competitiveness and Private Sector Development: Eastern Europe and South Caucasus 2011 : Competitiveness Outlook With a total population of over 75 million people and a strategic location between wealthy trading partners with Russia to the east and a vast market of EU citizens to the west the Eastern Europe and South Caucasus (EESC) region is attractive as a destination for investment and trade. It is endowed with significant human and resources ranging from the black soil in Ukraine that produces some of the best wheat in the world to energy reserves in Azerbaijan and unexplored water resources in several countries. However in spite of recent growth – an average of almost 8% of GDP during 1998 2008 – the region’s productivity levels remain 77% below the world average. The OECD Eastern Europe and South Caucasus Competitiveness Outlook examines the key policies that would increase competitiveness in the countries of the region through developing human capital improving access to finance for SMEs and creating more and better investment opportunities.