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Romania

Banii, banii, banii (vremea este întotdeauna însorită)?

Isfandyar Zaman Khan's picture
Also available in: English
Money trade hands at a market in Zagreb, Croatia
Întreaga lume este într-o stare tumultoasă – schimbările climatice fac ravagii pe toate continentele şi se apropie o iarnă arctică; brazilienii cu pierdut cu 7-1 (chiar s-a întâmplat?); Prinţesa Kate este însărcinată din nou (dacă este fată o va chema Elizabeth?).

În acest context, o întrebare fundamentală persistă în mintea tuturor micilor deponenţi: „banii mei sunt în siguranţă?”

Răspunsul este pe scurt „da”. În foarte mare măsură în siguranţă.

 

Moving Toward Gender Equity: It Takes Strategy and Opportunity

Sammar Essmat's picture



“Maybe in the Middle East … but in our part of the world, there is no gender inequity.” As an Egyptian, I wasn’t surprised to hear such assertions from colleagues when I arrived in the Eastern Europe and Central Asia region to deliver a program aimed at creating opportunities for women in the private sector. With its socialist legacy, the region prided itself on gender equality. Women were historically well-represented in the state-run economic systems. I looked at legal frameworks and the Women, Business and the Law indicators and found little evidence of discrimination. Laws on the books were overwhelmingly gender-neutral. I was puzzled.
 
Then I studied data from the World Bank’s Enterprise Surveys: Women’s rates of participation in the private sector told a different story. Women’s status seemed to be collapsing with the state systems and falling as markets started opening. For instance, now, only 36% of firms in the region are owned by women; that is a lower percentage than in East Asia (60%) and Latin America and the Caribbean (40%). Only 19% of companies in Eastern Europe and Central Asia have female top managers, compared to 30% in East Asia and 21% in Latin America and the Caribbean.
 
So I faced the daunting task of delivering a gender program in a region where few believe that there are gender issues to address.

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?

Roma Inclusion: An Agenda for Action

Maria Davalos's picture
Also available in: Македонски
A Roma family in Macedonia prepares coffee during a black out
The Roma make up Europe’s largest and poorest ethnic group, with three-quarters of their estimated 10 to 12 million people living in poverty, and fewer than one in three having a job. The Roma are also much younger than the general population, with 30 percent under age 15-which can be a real boon, considering the latest demographic trends. But a Roma child’s chance at a good life starts to decrease very early.  

A recent regional study that focused on Roma and non-Roma in nearby communities from five Eastern European countries finds between 28 and 45 percent of Roma children attend preschool in four of the five study countries. However, the Roma preschool rate jumps to 76 percent in Hungary, where targeted policies have been in place; and this is about the average for non-Roma preschool rates across the five countries. Hungary’s experience offers promise because surveys show that preschool matters greatly to completing secondary school and staying off social assistance.

The Supply Side of the Coin: Is Monetary Policy (Where There Is One) Passing Results?

Matija Laco's picture

Sovereign difficulties have divided financial markets in the Euro area, thereby increasing differences in bank lending rates across countries. Policy makers in both Brussels and Frankfurt are concerned about an uneven transmission of policy interest rate cuts by the European Central Bank (ECB) to bank lending rates across the region.

Based on this situation, a key question stands out: is the link between official, market, and retail interest rates broken?

When markets are functioning properly, interest rates on loans follow the policy rate in a uniform way across countries (granted with some lag). But, in the context of the ongoing crisis, markets became somewhat irresponsive – resulting in ECB rate cuts being unevenly passed on to borrowers across Euro-area countries. This uneven distribution has meant that those countries facing greater financial difficulties had to endure tougher financing conditions than those facing fewer difficulties – as exemplified when comparing Spanish and Italian retail rates to the much-lower French and German ones.  

So far, the economic literature has been relatively robust in arguing that government bond yields or credit default swaps (CDSs), given their stability, do not exert much influence on the way banks set their interest rates for their clients. However, the crisis has shown that because of the interconnectedness of central bank and sovereign balance sheets, developments in sovereign markets affect retail interest rates.

How has this played out in the EU11 countries? Have retail interest rate decreased in those countries where central banks reduced their policy rates? Or, was this a reaction on downward movement of CDSs?

Figure 1.  Interest rates on new lending to enterprises (in Percent) and CDS spreads (in basis points) in selected EU11 countries


 

Jim Yong Kim: Countries Need to Invest in Education

Jim Yong Kim's picture

I recently visited a math classroom in Frumusani, Romania, where half of the students are Roma. It's critically important for all countries to invest in education in order to stay competitive in the global economy. That means education for all, including communities such as the Roma that have long faced discrimination. Please watch the video to hear more.

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.