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Publication
The Crisis Hits Home : Stress-Testing Households in Europe and Central Asia
(World Bank, 2010)The Europe and Central Asia (ECA) region has been hit by a crisis on multiple fronts. Countries in ECA are facing major, interrelated, external macro-financial shocks. The first is the global growth slowdown leading to falling export market demand. In addition, the prospects for inflows of remittances to low-income countries have been downgraded as economic activity in migrant host countries has declined. The second is the financial deleveraging by major banks and other financial institutions in developed economies, which has markedly reduced the availability, and increased the cost, of external finance across public, corporate, and financial sectors. The third is the recent commodity price changes, which have involved a reversal of much of the commodity price boom of 2007 and 2008. The main objective of the study is to understand the impact of these macroeconomic shocks on household well-being. In particular, it seeks to understand the key macroeconomic shocks confronted by the region and the impact of such shocks on household welfare, including the effect on household income flows, consumption levels, and liabilities. It will also assess possible strategies to cope with the crisis and manage the adverse social impact. -
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Unleashing Prosperity : Productivity Growth in Eastern Europe and the Former Soviet Union
(Washington, DC : World Bank, 2008)The analysis presented in this report assembles, for the first time, evidence from a variety of sources in the countries of Eastern Europe and the former Soviet Union to show that policy and institutional reforms are important in achieving higher productivity growth. However, significant challenges remain in sustaining that growth. Many countries that started the reform process early, such as the new member states of the European Union, have come to resemble advanced market economies and face challenges in competing successfully in the global economy that are similar to the challenges faced by other European countries. For these new European Union members, the report argues, policies that facilitate innovation and firm expansion will be a key. But for other countries that started the reform process later, such as the countries of Southeastern Europe and the former Soviet Union, there is still a need to address the legacy of transition. For these countries, policies that accelerate restructuring and ease the entry and exit of firms will continue to be essential. This report - part of a series of regional studies of the World Bank's Europe and Central Asia region that has already covered poverty and inequality, the enhancement of job opportunities, trade and integration, migration and remittances, and the challenges posed by aging populations is intended as a contribution to the author thinking about how the World Bank may work more effectively with client states and other partners in the region to promote growth and foster higher living standards in a rapidly changing World. -
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Integrating Environment into Agriculture and Forestry : Progress and Prospects in Eastern Europe and Central Asia
(Washington, DC : World Bank, 2008)This study reviews how the integration of environmental concerns into agriculture and forestry is progressing in the countries of Southeastern Europe (SEE) and of Eastern Europe, Caucasus, and Central Asia (EECCA) since 2000 and assesses prospects for the future. The present report is a contribution to the environment for Europe process. At the Fifth Ministerial Conference in Kiev in 2003, participants decided to pay greater attention to the needs of the EECCA and adopted an environmental strategy for the sub-region. The commitments made under that strategy are taken as benchmarks against which progress is assessed, recommendations made, and emerging environmental priorities reviewed. This report also includes an assessment of SEE countries and territories. The analysis provided here is intended primarily to inform discussions during and after the sixth environment for Europe Ministerial Conference, to be held in Belgrade in October 2007. The main text of this report provides a synthesis of major regional issues and trends, with broad recommendations for future directions and priorities. The annexes provide a wealth of data along with detailed country reviews for the 22 countries and territories studied. -
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Economic Implications of Chronic Illness and Disability : In Eastern Europe and the Former Soviet Union
(Washington, DC : World Bank, 2008)This report aims to fill in the knowledge gap in this field by analyzing cross-country data on basic indicators, and by carrying out more detailed empirical analysis on causal relationships of interest, including the impact of disability on employment, wages, poverty, and children's school enrollments-focusing on four transition countries with household survey data sets that allow more elaborate econometric analyses. This report argues that it is timely to bring the economic costs of disability to the forefront of development policy because of the large impact poor health status and disabilities have on employment, poverty, children's schooling, and time spent in caring for disabled individuals, especially by adult females (which in turn inhibits higher female labor force participation prospectus). In recent years, there has been some recognition of the need to discuss disability issues in strategy documents such as poverty reduction strategy papers (PRSPs) and country assistance strategies (CASs). But in the absence of basic empirical evidence on the living conditions and behavior of disabled individuals, it is a challenge to formulate concrete steps to tackle this particular economic development problem. -
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The Caucasian Tiger : Sustaining Economic Growth in Armenia
(Washington, DC: World Bank, 2007)This book is intended to explain the factors underlying the stellar growth record that has led to Armenia's emergence as the Caucasian Tiger and to provide policy advice to the Armenian authorities to ensure the continuation of this growth. The book is presented in two parts, with Part I containing the analysis and the policy advice and Part II containing detailed background papers. The attribution for the emergence of Armenia as the Caucasian Tiger lies in the creation of an environment of macroeconomic stability and the determined pursuit of reforms aimed at establishing a market economy that was integrated with the world. This book describes that story. But the central focus of the book remains the reform agenda for the future. It is argued that the continuation of high rates of growth would require building defenses against economic shocks the country may face, and this would entail addressing the key vulnerabilities in today's economy. Thus the book is intended not only as a case study of success in post-Soviet economic transition, but also as a candid piece of policy advice for the Armenian authorities -
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Fiscal Policy and Economic Growth : Lessons for Eastern Europe and Central Asia
(Washington, DC: World Bank, 2007)This study explores public finance policies in the transition countries of Europe and Central Asia (ECA) and their likely effects on economic growth. The analysis is organized in three parts. Part one reviews public finance systems across the ECA region with regard to overall size, structure of expenditures and revenues, and patterns of fiscal adjustment over time. It compares these patterns and trends in ECA countries against those in fast-growing economies in other regions, and it explores possible relationships between these public finance variables and rates of economic growth. Part two undertakes detailed analysis of public expenditures policies in four major areas: infrastructure, education, health, and pensions. Part three turns to the revenue side of the budget and looks in detail at two issues of particular importance in current policy debates: the impact of flat income tax reforms and the level and structure of taxes on labor. -
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Growth, Employment and Living Standards in Pre-Accession Poland, Volume 2. Background Papers
(Warsaw: World Bank, 2004-03-22)This report builds on the wealth of existing literature on living standards and inequality in Poland and is intended to continue the ongoing debate. The focus is on lack of access to economic opportunities as the most important dimension of poverty in Poland and one that is strongly associated with social exclusion, vulnerability and other dimensions of poverty. The report ' s main objectives are to: (i) describe what happened to Polish living standards after the " shock therapy " of the early 1990s and in the less prosperous last five years; (ii) highlight the main factors behind the recent increase in poverty and inequality; (iii) identify the main risk factors associated with social exclusion and " transient " and " permanent " poverty in pre-accession Poland; (iv) address the growth of a hard-core of chronic poverty; and (v) point to policy measures that may help Poland to move closer to the Lisbon targets for employment and social inclusion. This report consists of two volumes. Volume 1 presents the main findings and their policy implications. It begins with a general overview of the macroeconomic climate and its changes over the transition period. It then moves on to address the links between economic growth and poverty reduction in the high growth years (when poverty declined considerably) and in the following slow-down in growth (during which poverty increased). A description of the poverty profile and its changes over the last decade follows and leads to an analysis of the strong link between skills levels, employment opportunities and social inclusion as a way of avoiding poverty. Particular attention is paid to the growing divide between the chronically poor and the rest of the population. The role of social transfers as an important safety net for the most vulnerable (but also a potential barrier to effective long-term poverty reduction) is then discussed, along with the role currently played by civil society and informal networks as non-governmental safety nets. Finally some options are presented on policies that may help to meet the European Union targets for employment, social inclusion and reduction in inequalities. -
Publication
Slovenia : From Yugoslavia to the European Union
(Washington, DC: World Bank, 2004)The main objective of the book is to analyze Slovenia's threefold transition in the context of a broader transition process in Central and Eastern Europe and to contribute toward filling the obvious gap in the literature on this subject. The book provides an overview of the most important developments faced by Slovenia during its transition-the achievements, the problems, and the challenges-and discusses the lessons that have been learned and the main challenges that Slovenia can expect to face. Interdisciplinary in character, the book focuses on socioeconomic and political aspects and integrates them into the existing pool of knowledge about the transition process. -
Publication
Poland and the Knowledge Economy : Enhancing Poland's Competitiveness in the European Union
(Pruszkow, Poland: Rewasz Publishing House and the World Bank, 2004)The Poland Knowledge Economy Assessment (KEA) aims to provide policy options for securing sustainable growth, and improving competitiveness, by creating an environment conducive to business development, and investment in general, as well as to knowledge generation and absorption via innovation, and learning, in particular, as well as by stimulating investment in innovation, and in learning systems. This KEA argues that efficient, and relevant lifelong learning systems, Information and Communication Technologies (ICT), institutions and funding mechanisms to support innovative research and development (R&D), are essential components of the National Innovation System (NIS). The foremost theme of this report is securing sustainable growth and competitiveness in Poland, by stimulating investment in R&D, and in appropriate learning systems, which have a key role in developing a country's absorptive capacity-the ability to identify, assimilate, and exploit knowledge from both domestic, and external sources. Therefore, policies that support the development of inter-firm linkages, and the capacity to absorb new knowledge that can be gained through such linkages, are crucial elements. As regards R&D and innovation, efforts need to be made to build institutions and provide financial incentives aiming to increase Polish R&D. Nevertheless, it should be stressed that an improvement in the business environment in Poland is a necessary condition for raising the R&D within firms. Most importantly, efforts need to be made to increase the quality, and relevance of the formal education system, ensure the provision of life long learning systems to the entire population, and improve the linkages between academia, the scientific, and business communities that assist the transfer of technology in other countries. It is proposed that the regulatory framework be updated to the European Union (EU) 2002 level, and that the capacity, and market credibility of the Office of Telecommunications and Post Regulation (the regulatory authority), be strengthened in order to sustain competition. The implementation of e-government services for businesses, as well as citizens is key for improving the efficiency, and competitiveness of Polish business. -
Publication
Toward Country-led Development : A Multi-Partner Evaluation of the Comprehensive Development Framework--Findings from Six Country Case Studies
(Washington, DC, 2003)Collectively, the six country case studies provide an unusually rich source of material on the local dynamics of the aid business and the realities that countries face when they try to adopt CDF principles in earnest. In order to make this material more accessible (full case studies are over 70 pages), OED has summarized each study to about 15 pages and gathered all six summaries into this volume, which is intended to complement the main synthesis report for the CDF evaluation, Toward Country-Led Development: A Multi-Partner Evaluation of the Comprehensive Development Framework. This volume can also be used alone, to enrich the discussion of development assistance in a particular case study country or as a basis for comparing country experiences. Since the main purpose of the CDF evaluation was to look at what had happened since the CDF was launched, priority was given to interested countries where pilot implementation of the CDF was the most advanced (on the grounds that these countries would offer the greatest potential for learning). Consideration was also given to Regional balance. One non-CDF pilot country (Burkina Faso) was chosen as a control.