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Europe and Central Asia

I believe Belarus will benefit greatly from the Human Capital Index – Here’s why

Alex Kremer's picture


On 11 October 2018, the World Bank launched its Human Capital Index, which quantifies the contribution of health and education to the productivity of the next generation of workers. The Index is part of the Human Capital Project, a global effort to accelerate more and better investments in people. Belarus didn’t participate in the Index this year.

Back in 1440, King Henry VI of England founded a college for poor scholars, providing a free education for boys whose families couldn’t afford to pay. At that time, the young students learned to read and write so that they could later work as administrators in the royal court.

A few centuries later, in 1977, I became one of “King Henry’s scholars”. I’m not working for a king, of course, but I recognize how lucky I am to have benefited from Henry’s medieval investment in human capital. One could perhaps call him a “very early adopter”.

These days, investing in people makes more economic sense than ever. Human capital – the knowledge, skills, and health that people accumulate throughout their lives – accounts for up to 68% of a country’s overall wealth, on average. In the case of Belarus, where I now live, the share of human capital in the country’s total wealth is somewhat lower, at 49.2%.

After three decades of transformation in Georgia – what’s next for the jobs market?

Florentin Kerschbaumer's picture
Georgia Job Market
Celebrating his 60th birthday recently, my father chatted with me about his career and getting his first job. He graduated as an engineer in the 1970s in Austria and faced very different employment opportunities to those I faced some decades later. There were five construction firms, all just around the corner from his home, to which he could apply for a job at that time.

When I finished graduate school in 2016, I applied for work with organizations in five different countries around the world. Suffice to say, the labor market in which my generation is competing is vastly different and far more globalized than the one my dad faced.

Sometimes overlooked, but essential - like good plumbing: Why accounting matters for development

Ed Olowo-Okere's picture



A few weeks ago, The Economist published an article on economic governance that discussed the importance of public sector accounting. It recognized the importance of maintaining existing public-sector assets and investment in new ones. These assets, according to an IMF study, account for a significant portion of GDP. But, the article asserts, filling potholes and repairing bridges are not as politically appealing as flashy new infrastructure, and few economies engage in robust public-sector accounting that demonstrates the net worth of these assets.

Maybe if governments and citizens understood the value of their public assets, they’d be inclined to invest in their maintenance – avoiding waste and even catastrophic accidents when poor infrastructure fails?

Improving public procurement in Georgia – what’s the magic recipe?

Sandro Nozadze's picture
Procurement Georgia

What exactly is procurement, you may ask? If you google the word, you’ll likely find several different definitions.
 
Essentially, procurement is about buying things. That sounds quite simple, of course, but it becomes much more complicated at the level of government buying, especially when complex risks and variables must also be considered. So, is there a way to simplify government procurement?

How Islamic finance can boost infrastructure development

Joaquim Levy's picture
Queen Alia International Airport, Jordan. © littlesam/Shutterstock
Queen Alia International Airport, Jordan. © littlesam/Shutterstock

In many developing countries, there are glaring gaps in the quantity of infrastructure per capita. For example, power generation capacity per person in these countries is only one-fifth that of advanced economies. We know that expanding infrastructure investment in economic and social services is an effective way both to promote inclusive growth and to foster local resilience to global shocks. In particular, investment in quality, sustainable infrastructure helps finance the transition towards a low-carbon, more environmentally friendly economic model. This happens notably in the renewable energy and low-emission transport sectors. Given the scale of resources needed to address the infrastructure investment gap, mobilizing the private sector for this goal has become imperative, especially in countries where financial transactions in banking and capital markets follow Islamic law (or shari’ah) principles.
 
The conventions of Islamic finance are particularly suitable for infrastructure development. They define an asset-oriented system of ethical financial intermediation built on the principles of risk-sharing in lawful activities (halal) rather than rent-seeking gains. This “entrepreneurial” approach by investors requires a high degree of transparency and creates incentives to monitor projects more carefully, which, in turn, strengthen the efficiency in building and operating infrastructure.

Resilient schools, resilient communities: Improving education infrastructure for Syrian refugees and host communities in Turkey

Ede Ijjasz-Vasquez's picture
 


Across the globe, more than 20 million children from conflict-affected countries are out of school. Missing out on schooling opportunities severely compromises the future of displaced individuals, who have left everything behind to escape conflict and violence.

Take Syrian refugees in Turkey, the country that hosts more individuals fleeing from armed conflict than any other in the world. Turkey has welcomed nearly 3.6 million of the 5.7 million externally displaced individuals as a result of the protracted crisis in Syria. Almost one-third of these people are of school age.

How Russia can further improve its tobacco taxation efforts to boost health and life expectancy

Patricio V. Marquez's picture

Over the past 10 years Russia has made great progress in increasing the life expectancy of its people. Back in the mid-2000s, we documented the dramatic decrease in life expectancy in the post-Soviet period in the report “Dying Too Young,” due especially to high mortality among working-age men. Behavioral risk factors, such high rates of cigarette smoking and alcohol abuse, economic and social dislocation, a shift in the predominant diseases and the deterioration of the health care system, including access to it, all contributed to premature death and a dramatic shrinking of the Russian population that hadn’t been seen since World War II. 

Could private job services help address the unemployment challenge in Bosnia and Herzegovina?

Josefina Posadas's picture
Employment in Bosnia and Herzegovina
Bosnia and Herzegovina: private and public employment services
Despite recent stability in economic growth in Bosnia and Herzegovina, with 3.2% growth projected for 2018, the country continues to experience an elevated level of unemployment, especially among young people.

To help address these alarming statistics, the governments in Bosnia and Herzegovina are investing substantial resources in promoting employment opportunities. These services comprise mostly job intermediation, such as counseling or job matching, and financial incentives to employers when they hire registered unemployed people. But given the magnitude and persistence of the unemployment problem, there must be other, more effective approaches that could be deployed to complement ongoing practices. One such approach is outsourcing selected employment services to private job brokers.

 

Romania: good policies and institutions can limit the impact of natural disasters

Donato De Rosa's picture


The World Bank’s recently completed Systematic Country Diagnostic highlights Romania’s vulnerability to natural disasters. Over the years, floods, droughts and earthquakes have cost the country thousands of casualties and billions of euros in damages to physical infrastructure. They have hurt the economy’s productive capacity and disproportionately affected the poor.

A vulnerable country

Countries around the world are already seeing evidence of the damaging impact of climate change, which is making past growth patterns unsustainable and reversing progress made on poverty reduction and shared prosperity.

What countries can learn from Moldova’s successful tobacco taxation efforts

Patricio V. Marquez's picture



Smoking begins at a young age in Moldova, with people starting to smoke at the average age of 17 years old. It’s a bigger concern among men here, as 30 percent of men in Moldova smoke, according to 2016 data, compared to 3.3 percent of women.


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