Labor and Social Protection
A view from Central Europe and the Baltics
Being busy with everyday life many of us, including myself, do not spend much time thinking how our lives will look like in 20 or 30 years. However, when I travel to the countries I work on, I see the challenges faced by the elderly, especially in rural areas. These challenges include poor access to social and health services, exclusion and simply loneliness.
The countries in Central Europe and the Baltics are ageing. As a result, the size of the working age population is shrinking, creating labor shortages which could potentially challenge future growth. Ageing is also putting government budgets under pressure from the rise in age-related spending on pensions and healthcare, and the shrinking base of tax contributors.
All of this is well known. Less appreciated, however, is the fact that in many countries there is a distinct geographical pattern to ageing. Sparsely populated rural areas are seeing an increasing share of elderly people, while urban areas still attract most of the young generation. The greying of the rural population creates a challenge for public policy as rural municipalities often have fewer resources with which to address the needs of their elderly population.
In recent decades, many European countries have tried to instill greater labor market flexibility through increased use of fixed-term, temporary work contracts, as opposed to open-ended or permanent ones. The result has been dual labor markets, with temporary workers having fewer rights and job security than those on permanent contracts. One expert on the topic – Tito Boeri, Professor of Economics and Dean for Research at Bocconi University, Milan – stresses that temporary workers were especially hard hit during the Great Recession.
Country Partnership Strategies are a central element of the World Bank Group’s effort to act in a coordinated way to end extreme poverty and boost shared prosperity. But they can be hard for the average person to navigate—some are three-volume tomes, and others can be dense with technicalities. When we make them inaccessible to the general public, we often forgo a critical opportunity to build broad support for our work.
This year, the Bank Group’s India team decided to take a more innovative approach—one that has the potential to directly engage the public and perhaps even spur others to join us in our cause. In producing the Country Partnership Strategy for India, the team opted not to create a simple PDF for the website. Instead it produced a well-designed book, flush with easy-to-understand graphics and appealing photographs. It also produced a highly interactive web application that visualizes the strategy—and tracks the strategy’s progress towards its goals over time. The tool shows exactly how individual projects along with knowledge and advisory work line up with our twin goals, and what outcomes we expect in each instance.
A former hotel owner in one of the region’s major cities, who wants to remain anonymous, tells a story that should have had a happy ending. Her 40-room hotel was doing well. It had built a reputation for excellent service. She decided to capitalize on her success and expand the business by adding a restaurant. This would have provided her with another revenue steam and allowed her to attract more customers, especially foreign tourists. Apart from expanding her business, the need for new kitchen and wait staff would have meant jobs for the local community. It would also have meant more business for local suppliers of everything from food to tablecloths.
With such a long list of potential benefits, who would want to stand in the way?
Over the past year, much attention in the development community has been focused on reaching two global milestones by 2030: ending extreme poverty and promoting shared prosperity. The World Bank Group and the International Youth Foundation, together with many of our public, private, and philanthropic partners, have recognized that to reach such ambitious goals, the world must achieve broad-based and inclusive economic growth that is focused directly on youth and jobs. Here's why we think pursuing this strategy is such an urgent priority.
After dropping for many years, there has been a recent resurgence of fertility rates in Egypt. A woman born in the 1960s gave birth to an average of 1.4 children by the time she turned 25. Then there came a sharp drop, bottoming out at near 1.1 for women born in the late 1970s. But since then, fertility rates have bounced back, up to an average of 1.2 for women born in the mid to late 1990s.
What makes smart politicians? Jeffrey Frankel has an idea. His recent blog examines the allure, and trap, of universal subsidies. For one thing, they know that pulling the plug on bad policies should be done sooner rather than later. The same can be said of other policies related to investment and labor legislation. Economic democracy is a great thing. However, beware of misguided routes to achieving it.
- Egypt, Arab Republic of
- Iran, Islamic Republic of
- Saudi Arabia
- Syrian Arab Republic
- United Arab Emirates
- West Bank and Gaza
- Yemen, Republic of
- Middle East and North Africa
- Global Economy
- Labor and Social Protection
- Public Sector and Governance
How can we best help children and youth succeed in life? This question is a top concern among parents, educators and policymakers all over the world. Growing attention has focused on the key role of socio-emotional skills, such as grit (perseverance) and motivation to overcome obstacles and failures, in the path to success. Recent prominent examples of the spotlight on this topic are Salman Khan’s (of the online Khan Academy fame) Huffington Post blog on the subject, and the recent LinkedIn post by World Bank Group President Jim Yong Kim.