As we explained in previous posts, digital technologies present both threats and opportunities for the employment agenda in developing countries. Yet many countries lack the means to take full advantage of these opportunities, because of limited access to technology, a lack of skills, and the absence of a broad enabling environment, the so-called “analog” complements.
Most of the discussion about the future of work focuses on how many jobs robots will take from humans. But this is just a (small) part of the change to come. As we explained in our previous blog, The changes that digital technology is introducing in the price of capital versus labor, the costs of transacting, the economies of scale, and the speed of innovation bring significant effects in three dimensions: the quantity, the quality, and the distribution of jobs. Let’s see them in detail.
Recently, the OECD released the results for PISA 2015, an international assessment that measures the skills of 15-year-old students in applying their knowledge of science, reading, and mathematics to real-life problems. There is a sense of urgency to ensure that students have solid skills amidst modest economic growth and long-term demographic decline in Europe and Central Asia (ECA).
Action is needed to address these problems and ensure that everyone – regardless of race, gender, age, sexual orientation, or gender identity - has an equal chance to live a healthy and prosperous life
This is not only the right thing to do, it also makes economic sense: a growing body of evidence indicates that discrimination against LGBTI people has a negative economic impact on society.
A few weeks ago, education policy makers and data analysts around the world were glued to their laptops when the Organization for Economic Cooperation and Development (OECD) published the results of PISA 2015. More than half a million students – from 72 countries and economies representing 28 million 15 year-olds – had taken the test. PISA, an international assessment administered every three years, measures the skills of students in applying their knowledge of science, reading, and mathematics to real life problems. PISA is one of the most influential international student assessments, which provides a rich set of information on the systems strengths and weaknesses, supports development of effective policies – and at the same time, benchmarks country's achievements vis a vis other participating countries.
Global competition to attract foreign and domestic direct investment is so high that nearly all countries offer incentives (such as tax holidays, customs duty exemptions and subsidized loans) to lure in investors. In the European Union, the 28 member states spent 93.5 billion euros on non-crisis State Aid to businesses in 2014. In the United States, local governments provided and average of US$80.4 billion in incentives each year from 2007 to 2012.
In order to better understand the prevalence of incentives worldwide, the Investment Climate team in the Trade & Competitiveness Global Practice of the World Bank Group reviewed the incentives policy of 137 countries. Results showed that all of the countries that were surveyed provide incentives, either as tax or customs-duty exemptions or in other forms. Table 1 (below) shows the rate at which these instruments are used across advanced and emerging economies. For instance, tax holidays are least common in OECD countries and are most prevalent in developing economies. In some regions they are the most-used incentive.
However, despite offering incentives, few countries meet all the requirements of a fully transparent incentives policy. These include: mandating by law, and maintaining in practice, a database and inventory of incentives available to investors; listing in the inventory all aspects of key relevance to stakeholders (such as the specific incentive provided, the eligibility criteria, the awarding and administration process, the legal reference and the awarded amounts); making the inventory publicly available in a user-friendly format; requiring by law the publication of all formal references of incentives; and making the incentives easily accessible to stakeholders in practice. A T&C study now under way on incentives transparency in the Middle East and North Africa (MENA) region showed that none of the eight countries analyzed has a fully transparent incentives policy. (See Graph 1, below.)
Results for the Organization for Economic Cooperation and Development’s (OECD) 2015 Program for International Student Assessment (PISA) exercise were released on December 6. The results are instructive, not only because of what they tell us about the science, mathematics, and reading knowledge and skills of 15-year-olds around the world, but also in terms of how they compare to the 2015 Trends in International Mathematics and Science Study (TIMSS) results, which were released a week ago (click here to read my blog on key takeaways from the TIMSS results).
But do we perhaps rely too much on numbers to gain an understanding of people’s lives and the societies in which they live? Do numbers really tell us the whole story, or give us the full picture?
Nevertheless, the car industry played an important role in the economic development of the socialist Yugoslavia, representing a big employer across all former Yugoslav republics. The onset of war in the early 1990s dealt a significant blow to the car industry there, with most the production facilities closing down by the end of that decade.
And then, in the early 2000s, car companies began opening new facilities in the immediate neighborhood (Hungary, Romania, Slovakia, Slovenia) and the region began producing world renowned brands such as Audi, Mercedes Benz, Renault, and Suzuki. This represented a new opportunity for manufacturers from the region to enter new supply chains - relying on skilled and experienced labor. On top of this, FIAT also opened a new factory in Serbia, further spurring demand for locally produced automotive parts.
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.