Publication: Unleashing Prosperity : Productivity Growth in Eastern Europe and the Former Soviet Union
Loading...
Date
2008
ISSN
Published
2008
Editor(s)
Abstract
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.
Link to Data Set
Citation
“Alam, Asad; Anós Casero, Paloma; Khan, Faruk; Udomsaph, Charles. 2008. Unleashing Prosperity : Productivity Growth in Eastern Europe and the Former Soviet Union. © World Bank. http://hdl.handle.net/10986/6588 License: Creative Commons Attribution CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Innovation, Inclusion, and Integration : From Transition to Convergence in Eastern Europe and the Former Soviet Union(Washington, DC : World Bank, 2008)Since the fall of the Berlin Wall the transition countries of Eastern Europe and the former Soviet Union have witnessed dramatic changes in outputs, the nature of jobs, standards of living, patterns of trade and the quality of education and health services. Yet, during much of this period, institutions that shape firm behavior and outcomes, most notably the business environment, have been converging toward those in developed market economies. The countries that acceded to the European Union in 2004 are the furthest advanced in this process. The countries of the Commonwealth of Independent States (CIS) are followers but are some distance behind. The six regional flagship studies produced by the Europe and Central Asia Region of the World Bank during the last five years, of which this volume is a synthesis and culmination, attest to this evolution from their particular perspectives. Those studies have covered productivity growth, the enhancement of job opportunities, trade and integration, migration and remittances, poverty and inequality and the challenges posed by aging populations. All the reports in this series offer specific policy recommendations that are intended to help the countries of Eastern Europe and the former Soviet Union promote economic growth and foster higher living standards in the rapidly changing world in which they are undertaking the transition to a market economy.Publication Rigidities in Employment Protection and Exporting(2010-05-01)A large number of studies have shown that contribution of exporters to economic growth and development is much higher than non-exporting firms. This evidence has lead governments to improve their trade policies in order to increase foreign exposure of firms. However, improvements in trade policies can only be fully effective when they are complemented with other regulatory reforms that improve the investment climate for firms. This study focuses on a particular aspect of investment climate, namely employment protection legislation, and shows how these regulations discourage firms from exporting. Using a rich set of firm level data from 26 countries in the Eastern Europe and Central Asia region, the author shows that firms that cannot create new jobs due to restrictive labor regulations are less likely to export. Evidence shows that firms that plan to export expand their size before they start to export. However the rigidities in labor markets make this adjustment costly. Higher costs of labor decrease operating profits and lead to a higher threshold value of productivity required for entering export markets. As a result, a smaller fraction of firms chooses to export.Publication Tunisia - Development Policy Review : Towards Innovation-driven Growth(World Bank, 2010-01-01)Tunisia must move from a low value-added and low cost economy to a higher value-added, knowledge intensive economy in order to significantly reduce unemployment, its overriding challenge. This Development Policy Review (DPR) provides a discussion of the key issues and challenges that are involved in achieving this goal. Towards this end, it discusses trade integration, innovation policies and enabling environment reforms (macro stability, economic regulation and governance, financial sector and labor market reforms and capital account opening) that could facilitate the structural transformation of the economy. The DPR is organized as follows: chapter one reviews growth and employment outcomes and challenges; chapter two discusses the rationale for increasing the pace of structural transformation of the economy in order to boost growth and reduce unemployment; chapter three examines the strengths and weaknesses of Tunisia's innovation system and strategies and proposes reform options in light of the international experience; chapter four discusses key aspects of Tunisia's global integration that could further contribute to innovation and productivity growth; chapters five discusses the key improvement in the enabling environment needed to support innovation and productivity growth (economic regulation, education sector reforms, financial sector reforms and labor market); finally, chapter six discusses structural transformation issues in natural resource-intensive sectors and examine the specific sectoral reforms needed to address the trade-offs between several objectives, including growth and natural resources preservation.Publication Bulgaria - Accelerating Bulgaria's Convergence : Volume 2. The Challenge of Rasing Productivity(Washington, DC, 2007-07)The report aims to assist the Bulgarian authorities in identifying options for policies and reforms that would help to boost productivity and employment and thereby economic growth and income convergence. To achieve this, the report looks at Bulgaria's product and labor markets, human resource development, and R&D and innovation system. The reform options are arranged along a time dimension, ranging from short to medium term. The implications of the proposed policy options for the government's budget are also briefly explored, including the utilization of EU grant funds. The report concentrates mostly on the supply-side aspects of Bulgaria's product and labor markets, its education (primary and general secondary, VET, tertiary) delivery, and its R&D and innovation system.Publication Investment Climate Assessment : Enterprises' Perception in Post Revolution Tunisia(Washington, DC, 2014-02)Located in the heart of the North African coastline, adjacent to vital shipping channels connecting Europe and Asia, Tunisia has long been a regional economic influence in the Middle East and North Africa. Although socialist policies dominated the Tunisian economy throughout the latter half of the 20th century, Tunisia has re-focused its economic strategy on key indicators such as foreign investment, domestic job creation, exports and tourism. These have become the backbone of the Tunisian economy and have helped strengthen relationships with primary trading partners in the European Union. Exports such as textiles, computer arts and petrochemicals now account for a significant portion of the Tunisian economy. This liberal economic development strategy created years of stable annual growth and improved living standards well into the 2000s. However, this growth was unequal due to a culture of corruption and cronyism that reached its height during the era of former President Zine el Abidine Ben Ali from 1987 through 2011. Years of progressive economic growth were stymied by rising unemployment and government waste. Discontent for the Ben Ali government boiled over in January 2011 with a revolution to overthrow the president, ruling party and Parliament. In the ensuing months of uncertainty, declines in tourism and investment contributed to an overall economic decline that lasted throughout much of the year. The political climate also remained uncertain as Tunisians worked to form a new coalition government and transition into a democratic system.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.