Connect with us

Newsdesk

Europe and Central Asia Sees Stronger Growth, Amidst Rise in Migration

Newsroom

Published

on

Economic growth for the Europe and Central Asia region will reach 2.2% in 2017, according to the World Bank’s latest Regional Economic Update, Migration and Mobility in Europe and Central Asia. This represents the strongest growth in the region since 2011, and is 0.3 percentage points above the Bank’s previous forecast in May 2017.

Growth in Europe and Central Asia comes on the back of stronger industrial production and more exports in recent months, lifting most countries in the region out of recession. Unemployment rates have dipped below pre-financial crisis levels in several countries, while labor participation rates have simultaneously risen above their 2008 levels.

Despite these important gains, however, the region still faces challenges that are testing political and economic cohesion. According to the report, new technologies are impacting the distribution of income and wealth, with many workers struggling to adjust to the new skills demand of the digital economy. In addition, the number of full-time, permanent jobs as a share of total employment has declined, as flexible contracts become the dominant employment arrangement for younger workers. This rise in the share of flexible contracts is increasing the efficiency of firms and individuals, but also creating new forms of inequality and insecurity.

“Growth is returning to the region, which is certainly good news,” says Hans Timmer, World Bank Chief Economist for Europe and Central Asia. “At the same time, however, new technologies that provide new growth opportunities are bringing about more flexible labor contracts and more uncertainty. This has increased anxiety among people. And recent concerns over the influx of refugees can be seen as a manifestation of that heightened anxiety.”

The Europe and Central Asia region has experienced a sharp increase in the numbers of refugees and asylum seekers in recent years, from 3.7 million in 2014 to 6.4 million in 2016. This large influx has created new challenges and heightened public concern over migration. The report finds, however, that refugees and asylum seekers account for only a small share of total migrants in countries across the region – with the exception of Turkey, which was host to 3.1 million refugees in 2016.

Migration has played an important role in meeting demands for labor, supporting trade, and encouraging foreign direct investment in countries across Europe and Central Asia, says the report. Migration also promotes the transfer of knowledge between host countries and countries of origin – increasing exposure to flows of information that can create economic benefits.

The report recommends that countries in the region pursue policies that ensure the successful integration of migrants into society, in order to fully exploit the benefits of migration. But policies should not focus on migration challenges in isolation. Rather, reforms should help both migrants and non-migrants alike cope with rapid technological development and increased flexibility in labor markets, thereby reducing insecurity and sharing the benefits of economic growth more broadly across society.

Continue Reading
Comments

Newsdesk

ADB Project to Improve Fiscal Management, Develop Capital Markets in Armenia

Newsroom

Published

on

The Asian Development Bank (ADB) has approved a $40 million-equivalent policy-based loan attached to reforms that help strengthen fiscal sustainability and develop the financial and capital markets in Armenia. These are crucial enablers of private sector development.

Armenia’s economic growth over the last few years has been hampered by low levels of investment, both foreign and domestic, given the high costs of local currency finance and related constraints in the financial system. Efficiency-promoting upgrades in public investment and fiscal management are also needed to ensure sustained improvements in fiscal outlook and sovereign risk pricing.

“Financial markets remain nascent in Armenia, which limits the development of the country’s private sector and the banking industry,” said ADB Senior Financial Sector Economist for Central and West Asia Mr. João Farinha Fernandes. “This also constrains public finance and fiscal management, while exposing the economy to financial stability risks. ADB’s assistance is intended to help ensure that Armenia develops a conducive fiscal and financial intermediation environment where private sector players, both big and small, can contribute to growth and development.”

ADB approved a $50 million policy-based loan in November 2018 as part of an ongoing programmatic engagement on financial reforms to strengthen public debt and fiscal risk management, and to develop financial markets in Armenia.

The Second Public Efficiency and Financial Markets Program continues these reforms by strengthening the effectiveness of the government’s fiscal risk management function; promoting the development of fiscally responsible public–private partnerships; and enhancing market transparency and predictability in public debt management. The program will also improve the infrastructure of the government securities market and money market infrastructure, enhancing the sustainability and resilience of Armenia’s finance sector.

Continue Reading

Newsdesk

Bangladesh Can Boost its Exports with Better Logistics

Newsroom

Published

on

To meet the needs of its growing economy and to boost export growth, Bangladesh needs to improve its transport and logistics systems, says a new World Bank report launched today. 

The report Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success, finds that by making logistics more efficient, Bangladesh can significantly boost export growth, maintain its position as a leading ready-made-garments and textile producer, and create more jobs. The report notes that congestion on roads and in seaports, high logistics costs, inadequate infrastructure, distorted logistics service markets, and fragmented governance hamper manufacturing and freight, further eroding Bangladesh’s competitive edge and putting its robust growth path at risk. 

“Bangladesh’s congested transportation and often unsophisticated logistics systems impose high costs to the economy,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “By making its logistics more efficient, Bangladesh can significantly optimize its connectivity, business environment, and competitiveness, putting the country on the right path to become a dynamic upper-middle-income country.”

Efficient logistics, the report argues, has become one of the main drivers for global trade competitiveness and export growth and diversification. For Bangladesh, improving its logistics performance provides an opportunity to increase its world market share in garments and textiles, which account for 84 percent of its total exports, expand into new markets, and diversify its manufacturing and agriculture into high-value products. 

The report notes that improving Bangladesh’s logistics requires a system-wide approach based on greater coordination among all public institutions involved in logistics and with the private sector, increasing the effective capacity of core infrastructure, and removing distortions in logistics service markets to reduce costs and improve quality. At a regional level, harmonizing its logistics systems and aligning its customs with that of its neighbors could turn Bangladesh into an important node for regional freight flows and further boost its trade. 

“There’s no doubt that reforms and investments for better transport and logistics will yield Bangladesh substantial economic benefits and strengthen its competitive advantage,” said Matías Herrera Dappe, Senior Economist at the World Bank and author of the report. “But the solution to logistics is not just to invest more but to invest better, by focusing on the service gap, and creating the incentives for high quality and competitive logistics services.”

Continue Reading

Newsdesk

New development models to drive growth and employment for youth in Africa

Newsroom

Published

on

The United Nations Environment Programme (UNEP) today launched the Global Environment Outlook-6 (GEO-6) for Youth in Africa report on the margins of the 17th session of the African Ministerial Conference on the Environment (AMCEN).

The report analyses the economic opportunities that Africa’s natural resources can provide for job creation and sustainable development. It also provides a package of solutions to tackle Africa’s youth unemployment through the Green Economy.

“This Publication is anchored substantively in the UNEP’s sixth Global Environment Outlook (GEO-6) Regional Assessment for Africa,” said Juliette Biao Koudenoukpo, Director of UNEP’s Regional Office for Africa. “This Assessment has a very clear message; Africa has an opportunity to use its large young population to drive its growth.”

Africa’s youth remains the most hit by unemployment. One-third of Africa’s 420 million youth aged 15 to 35 are unemployed. Of these, 35 per cent are vulnerably employed and 19 per cent are inactive. These numbers will increase dramatically unless urgent actions are not taken.

The report recommends that Africa’s natural capital should be managed sustainably to enhance the livelihoods of African young population, create more sustainable and decent jobs as well as increase social and economic cohesion.

“The Green Economy calls for a paradigm shift in the way that we produce and consume. If young people are the centre of such a shift, they will secure a sustainable future replete with sustainable livelihoods,” said Professor Lee White, Minister for Environment, Forest and Oceans of Gabon and outgoing President of AMCEN. “The Global Environment Outlook-6 for Youth, Africa: A Wealth of Green Opportunities digs deep into that future and shows young people how they can secure their livelihoods through green jobs.”

Natural resources remain a key source of employment in Africa. Eight out of ten people’s employment on the continent are supported by natural resources. Nearly six million Africans are employed in the fisheries and aquaculture sector, ten million people work in the wildlife sector and an average of 54 per cent in the agricultural sector.

The report includes case studies and success stories on African youth who have invested in natural resources to develop entrepreneurship, improve their knowledge and skills as well as create jobs and sustain their livelihoods.

The report calls on governments to encourage youth to invest in green economy through creating platforms for innovation in sustainable development. While confirming the potential of youth in leading green growth in Africa, the report strongly establishes the correlation between green economy and decent jobs.

Continue Reading

Latest

Newsdesk4 hours ago

ADB Project to Improve Fiscal Management, Develop Capital Markets in Armenia

The Asian Development Bank (ADB) has approved a $40 million-equivalent policy-based loan attached to reforms that help strengthen fiscal sustainability...

South Asia6 hours ago

Remapping Indian Occupied Kashmir: A Multipronged Travesty

The second Presidential Order on the Reorganization of Jammu & Kashmir by India in 2019 is yet another outlandish decision...

Europe8 hours ago

What Motivated Russia’s Participation in the Battle of Navarino?

On October 20, celebrations in honor of the 192nd anniversary of the Battle of Navarino with the participation of President...

Middle East10 hours ago

Iran’s Dangerous Game in Iraq Could Lead to Deep Quagmire

Citizens of Baghdad continue to fight against the current regime after over a month of protests reached a fever pitch...

Reports13 hours ago

Austria: Reforms will be necessary to uphold high well-being levels

Austria stands out for its high levels of economic and social well-being. Preserving these will require reforms to improve competition...

South Asia14 hours ago

Kartarpur Corridor: A message of Peace and Prosperity

Kartarpur corridor was opened on 9 November 2019 (Saturday). It paved the way for the Sikh community to visit one...

New Social Compact16 hours ago

Nairobi summit: Women’s empowerment a ‘game changer’ for sustainable development

The global goal of a sustainable future for all cannot be achieved until women, girls and young people gain control...

Trending

Copyright © 2019 Modern Diplomacy