Innovation, Inclusion, and Integration : From Transition to Convergence in Eastern Europe and the Former Soviet Union

Abstract

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.