Syndicate content

Czech Republic

Middle class jobs are thriving in Central and Eastern Europe

Roma Keister's picture
Photo: Tomislav Georgiev / World Bank

Exponential increases in automation, computerization and digitization is having a profound impact on many people’s jobs. Branko Milanovic’s recent work on global inequality has shown extent to which the lower-middle class jobs in developed countries are being replaced by technology. In particular, economists argue that middle-skilled, routine-intensive jobs are being hollowed-out. And indeed, in Western European countries and the US there has been a decrease in the intensity of routine tasks – both manual and cognitive. However, in Central and Eastern European (CEE) countries, the amount of routine cognitive work has been on the rise. And the pay for these workers has increased faster than for high skilled workers. Why is this happening, when in the most advanced economies the opposite is happening?

Improving opportunities for Europe’s Roma children will pay off

Mariam Sherman's picture
Roma child, Romania. Photo by Jutta Benzenberg

Eight years on from the start of the global economic crisis, close to one quarter of the European Union’s population remains at risk of poverty or social exclusion. But one group in particular stands out: Europe’s growing and marginalized Roma population.

The equivalent figure for Roma children stands at 85 percent in Central and Southeastern Europe. Living conditions of marginalized Roma in this region are often more akin to those in least developed countries than what we expect in Europe.

Part of the #Youthbiz movement? Share your story!

Valerie Lorena's picture

Also available in: Français | العربية
 



A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

Why Serbia Needs to Start its Export Engine

Dusko Vasiljevic's picture

City square in Belgrade This is the story of a country located next to the largest and most connected economic block in the world, with fairly low labor costs and a relatively well educated workforce. You would expect that country to do well. However, the state of Serbia’s economy is problematic. Today, Serbia’s output is below what it was in the 1980s (in the time of Yugoslavia) and only half of its working age population has a job in the formal sector.

At the heart of Serbia’s problems are two interconnected imbalances, which explain why the country appears to be stuck on its path to prosperity. First, the economy is running on domestic consumption, which was fueled by financial inflows since 2000, while exports remain well below potential. Second, employment is driven by the state, not the private sector, with almost half (45%) of all formal jobs in the government or State Owned Enterprises.

Has EU Membership Benefitted New Entrants?

Mamta Murthi's picture

A view from Central Europe and the Baltics

Ten years ago this month the European Union expanded to include 10 new members - Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia. It was the largest expansion in the EU's history in terms of population and area, and of historic importance in that it brought into one Union countries that had formerly been on different sides of the Iron Curtain.

Given the Eurozone crisis from which the EU is slowly recovering, it is natural to ask if EU membership has benefitted the 2004 entrants.
 

PISA 2012: Central Europe and the Baltics are Catching Up – but Fast Enough?

Christian Bodewig's picture

9th Grade student Shahnoza School. Tajikistan When the Organization for Economic Cooperation and Development (OECD) launched the results from the most recent assessment of mathematics, reading, and science competencies of 15 year-olds (the Program for international Student Assessment, PISA) last December, it held encouraging news for the European Union’s newest members. Estonia, Poland, Slovenia, and the Czech Republic scored above the OECD average and ahead of many richer European Union neighbors. Compared to previous assessments, the 2012 scores of most countries in Central Europe and the Baltics were up (as they were in Turkey, as Wiseman et al highlighted in this blog recently). Improvements were particularly marked in Bulgaria and Romania, traditionally the weakest PISA achievers in the EU, as well as well-performing Poland and Estonia. Only Slovakia and Hungary saw declines (see chart with PISA mathematics scores).

Long Live The Internal Market! (But How Competitive is the EU?)

Matija Laco's picture
A vibrant private sector - with firms investing, creating jobs, and improving productivity - is absolutely essential for promoting growth and expanding opportunities. In order to support the private sector, however, governments need to step in and remove obstacles to growth and job creation. Although macroeconomic stability and sustainability are unquestionably necessary for spurring business activity, the quality of the business regulation also matters.
Collectively, the 10 indicators in Doing Business 2014 are a great tool for assessing the ease of doing business in countries and measuring the quality of their regulations.

The results can be surprising for some countries in the European Union (EU): Would you ever consider that the most difficult country to start a business in the EU is Austria? That Italy is the worst place to pay taxes? That one of the top countries in protecting investors is Slovenia? Or that Poland is the global runner-up in providing information about credit?

Why Have FDI Flows to Emerging Europe Remained Stable in Recent Years?

Gallina Andronova Vincelette's picture

Eleven of the less prosperous members of the European Union – Bulgaria, Croatia1, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, and Slovenia (EU11)—have remained attractive destinations for Foreign Direct Investment (FDI). The Czech Republic, Estonia, and Slovakia witnessed FDI levels in 2012 similar to pre-crisis levels. Poland and Bulgaria also experienced large gains in FDI in 2012.

Prospects Daily: US consumer confidence falls; inflation moderated in Chile, Peru and Mexico but rose slightly in Brazil

Global Macroeconomics Team's picture


Financial Markets…U.S. Treasuries slid for the first time in four days, with the benchmark note yields 3 basis points to 1.62%, as a government report showed U.S. employers added more than forecasted jobs in November. U.S government bonds have advanced 2.8% this year as of yesterday, after gaining 9.8% in 2011 and 5.9% in 2010.

Quote of the Week: Václav Havel

Anne-Katrin Arnold's picture

"Without a global revolution in the sphere of human consciousness, nothing will change for the better in the sphere of our Being as humans, and the catastrophe toward which this world is headed, whether it be ecological, social, demographic or a general breakdown of civilization, will be unavoidable. If we are no longer threatened by world war or by the danger that the absurd mountains of accumulated nuclear weapons might blow up the world, this does not mean that we have definitively won. We are in fact far from definite victory.

We are still a long way from that 'family of man;' in fact, we seem to be receding from the ideal rather than drawing closer to it. Interests of all kinds: personal, selfish, state, national, group and, if you like, company interests still considerably outweigh genuinely common and global interests. We are still under the sway of the destructive and thoroughly vain belief that man is the pinnacle of creation, and not just a part of it, and that therefore everything is permitted. There are still many who say they are concerned not for themselves but for the cause, while they are demonstrably out for themselves and not for the cause at all. We are still destroying the planet that was entrusted to us, and its environment. We still close our eyes to the growing social, ethnic and cultural conflicts in the world. From time to time we say that the anonymous megamachinery we have created for ourselves no longer serves us but rather has enslaved us, yet we still fail to do anything about it.


Pages