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Is Economic Growth Good for the Bottom 40 Percent?

Mamta Murthi's picture
Also available in: Română

Lessons from the recent history of Central Europe and the Baltics

Economic growth has returned to Central Europe and the Baltics. With the exception of Slovenia, all countries are expected to see positive growth in 2014 - ranging from a tepid 0.8% in Croatia, to more respectable growth rates of 2.2% in Romania and 2.8% in Poland, to highs of 3-4.5% percent in the Baltic Republics. Europe, more broadly, is also turning the corner and is expected to grow at around 1.5%.

Amidst this much welcome growth, however, one question remains: will economic growth be good for the bottom 40 percent and can they expect to see their incomes grow?

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).

What Can the EU Learn from Poverty Maps?

Mamta Murthi's picture
Also available in: Română
 

“A picture says a thousand words.”  This old adage came to mind the other day when we presented poverty maps on Central and Eastern Europe to the European Commission.  Technically speaking what we presented are small area poverty maps which give a more reliable estimate of poverty at county or local administrative unit level than would have been possible using national household surveys alone.

So what’s new?  The World Bank has been drawing poverty maps for some years now, as have some governments. What’s new is that the European Union, which redistributes resources from richer countries to poorer ones, is in the process of finalizing its programs for the next financing period, 2014 to 2020. These programs are aimed at reducing disparities in standards of living.   Being poorer on average than the rest of Europe, countries in Central and Eastern Europe will receive significant resources for investments to raise their standard of living.