Issues that have a direct bearing on the quality of economic growth include deforestation, damage to water and energy sources, and air pollution. In the short-term, governments should engage in stimulatory policies to provide a floor to the impact of constrained global growth prospects. Most countries in the region have both the fiscal and monetary space to undertake such policies without adverse macroeconomic consequences. Policies that “recalibrate” prices of natural capital so that social and environmental costs and economic and social benefits are internalized in the economy are critical for changing growth paths.