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Europe and Central Asia

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?

PISA 2012’s Success Story: Improvements in Quality and Equity in Turkey’s Education System

Will Wiseman's picture

Students at Sisli Vocational High SchoolOver the last decade, Turkey has achieved relatively high economic growth at just over 5% per year. As was discussed in a recent blog post, this translated into broadly inclusive growth- not only did income grow for all segments of the population, but there were also improvements in a number of non-income indicators of well-being, including in health and education. Last week the OECD launched the latest results from its Program for International Student Assessment (PISA), a triennial international assessment that evaluates education systems worldwide by testing the skills and knowledge of 15-year-old students. This new data allows us to revisit the question of how Turkey has fared in terms of the performance of its education system in general and with regards to inclusiveness in particular. So what does the data tell us?

World Bank to publish Purchasing Power Parities in March 2014

Grant Cameron's picture
In June 2013 we announced the upcoming release of the results from the 2011 round of the International Comparison Program (ICP). The results will include ICP 2011 benchmark PPPs and related volume measures for 199 participating countries/economies.

The Need for “Staying Power”: Russian Firms in Times of Economic Volatility

Alvaro Gonzalez's picture

In a recent blog, our colleague Birgit Hansl adds her voice to the chorus of economists warning us of Russia’s coming deceleration.  If she is right, this is especially bad news for Russia. If the recent past is an indicator of what may happen; this looming slump will have dramatic effects on the structure of the economy. 

A slowdown in Russia means a wiping out of gains made during booms.  Russia’s economy has experienced several booms and busts in the recent past.  We found that  young firms, even if they are efficient, were more likely to die off during a slump.  Not so for incumbents.  They had staying power independent of their relative efficiency.  So much for the new blood that the economy needs to diversify!

Russia's economy is concentrated and dependent on the extraction of natural resources. Recent trends are not promising. Growth in Russia has been limited to a few sectors and to a few firms. Russia is much less diversified today than it was during the Soviet Era, both within and across sectors. The bottom quartile of the manufacturing sector, ranked by operating revenue, contributes 0.6 percent of total manufacturing output while the top quartile contributes 80 percent. In addition, the average share of output for the bottom quartile of firms (in terms of operating revenue) in a manufacturing sector is 0.06 percent while the share of the top quartile is 94.7 percent.

Boosting Budget Transparency in Moldova

Victor Neagu's picture

BudgetStories.md
Did you know that funding Moldova’s Parliament costs each citizen on average $2 per year - the country spends double the share of its public budget for the cost of its Legislature when compared to Finland, Lithuania or Ireland. Or that the cost of passing a law in Moldova in 2012 was twice what it cost in 2011? These are just some of the many interesting facts I recently learned about my country through an Open Data initiative.

Budget Stories is an Open Data initiative which originated as a grassroots idea among the “think-tank” community in Moldova and has quickly developed into a popular and useful online tool for citizens, primarily by digesting raw budget execution numbers and presenting them as visually-engaging infographics.

Trade Regionalism in the Asia-Pacific: New Game, Old Rules?

Swarnim Wagle's picture

What's the next move in the major economies' Great Game? Source - wonderkris.Editor's Note: This blog draws on the forthcoming article “New Trade Regionalism in Asia: Looking Past the Sino-American Great Game," written by Swarnim Wagle, to be published in the Global Emerging Voices 2013 Working Papers. 
 
Negotiations over one of history’s most ambitious trade deals have taken another step towards defining the future of Trans-Pacific trade.
 
The latest round of discussions on the Trans-Pacific Partnership (TPP) wrapped up this past weekend in Salt Lake City, Utah. Negotiators are believed to have made headway on a number of thorny issues, clearing the way for ministerial talks to be held in Singapore, Dec. 7-10.   
 
The TPP will draw together 12 countries dotting the perimeter of the Pacific—Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. But it’s the United States’ efforts to spearhead the talks that have attracted the most attention. Concerns over a lack of transparency and the intrusive scope of the agreements’ provisions into national policymaking have led many to question its objective.
 

What Policies Will Allow Russia Achieve Environmentally Sustainable Growth?

Adriana Jordanova Damianova's picture

The Russian Federation’s accession to the World Trade Organization (WTO) is an event of exceptional importance.  On many levels, there are concerns that the environment in Russia will  be negatively affected by trade liberalization.   A growing body of research looking at economic and physical linkages between trade, environment and development shows that  these linkages are often complex and interdependent. 
 
Scientists have implicated that from an economic perspective, trade liberalization and environment are related because most economic output is  based on input from the environment, including the energy for processing them, and waste released to environment.  However, the effect of trade liberalization  on the environment would vary depending on  sector, country policies, markets, technologies and management systems. Changes in environmental quality as a result of potential expansion of “dirty industries” (e.g., ferrous and non- ferrous metals, chemicals) could be mitigated by effective and transparent enforcement mechanisms.  Russia’s economic gains from trade liberalization are estimated at  about $49 billion annually.  For these gains to be environmentally sustainable, it will be crucial to implement complementary “do-no-harm” policies tailored to address environmental concerns. This  will be pivotal in  sustaining the sources of gains from WTO accession in the long run.
 
So how does trade liberalization affect environmental quality?

Treading Water While Sea Levels Rise

Rachel Kyte's picture
Also available in: Español | Français | العربية

 UNFCCC/Flickr

At the UN climate talks that ended wearily on Saturday night in Warsaw, negotiators showed little appetite for making firm climate finance commitments or promising ambitious climate action. But they did succeed, again, in keeping hope alive for a 2015 agreement.

The final outcome was a broad framework agreement that outlines a system for pledging emissions cuts and a new mechanism to tackle loss and damage. There were new pledges and payments for reducing deforestation through REDD+ and for the Adaptation Fund, however the meeting did little more than avoid creating roadblocks on the road to a Paris agreement in 2015. In one of the few new financial commitments, the United Kingdom, Norway, and the United States together contributed $280 million to building sustainable landscapes through the BioCarbon Fund set up by the World Bank Group.

At the same time, COP19 was an increasingly emotional Conference of Parties to the UN Framework Convention on Climate Change. The overture to this round of climate drama was provided by Typhoon Haiyan. Haiyan added, sadly, more to the mounting evidence of the costs of failure in tackling climate change. The language is inexorably moving towards one of solidarity, of justice. But for the moment, this framing is insufficient to prevent emission reduction commitments from moving backwards.

And yet again, as was the case in the climate conferences in Cancun, Durban, Doha, and now Warsaw, outside the official negotiations, there is growing pragmatic climate action driven by climate leaders from every walk of life.

The sense of urgency and opportunity is building, it just fails to translate into textual agreement.

Meet the Innovators: Tech Entrepreneurs Forge a New Future for the Western Balkans

The countries of the Western Balkans – which include the states of the former Yugoslavia, along with Albania – are not exactly world-famous for their entrepreneurial spirit. Yet if you look at their societies more carefully, you’ll soon find a surprising number of new companies dotted throughout the Western Balkans. They’re already setting their sights beyond smaller domestic markets: They’re looking to Europe, and the world.

Creating Jobs in Armenia

Ulrich Bartsch's picture

 

Tim Richards, Mine Manager of the Amulsar Gold Mine explains the mine lay-out to Chris Sheldon, Sector Manager of Mining at the World Bank
Tim Richards, Mine Manager of the Amulsar Gold Mine explains the mine
lay-out to Chris Sheldon, Sector Manager of Mining at the World Bank.
Armenians love beach vacations. The problem is, their local options along the shore of Lake Sevan are not always good enough. Armenia being  a landlocked country,  reaching other beaches involves a long drive to the Georgian coast on the Black Sea, or at least two flights—one to reach Moscow or a European hub, and the next to get to an actual  beach. The latter option has another snag: flying out of Armenia is expensive, and offers little flexibility when it comes to choosing routes and departure times. 

Until recently, Armenia was not only landlocked, but also policy locked: a restrictive aviation policy limited options and increased prices for passengers and cargo coming in to or leaving Armenia’s Zvartnots airport outside of Yerevan, the capital. The  government had granted exclusive rights to a private, Armenian-owned airline, Armavia, for ten years starting in 2003, and therefore restricted competition from foreign airlines. So, even a regular holiday  sometimes started with a long road trip to Georgia’s capital Tbilisi to connect with cheaper flights there.
 

 


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