The Slovak economy is experiencing a robust, broad-based expansion that is boosting living standards and promoting convergence with higher-income countries. Policies should now aim to sustain this expansion, prepare people for the future of work and ensure that the benefits of strong growth are shared amongst all Slovaks, according to a new report from the OECD.
The latest OECD Economic Survey of the Slovak Republic looks at the factors behind the country’s economic performance, as well as the policies to maintain sound public finances, improve efficiency in the public sector and promote better education and up-skilling across the workforce. The Survey projects growth of 4.3% this year and 3.6% in 2020, and lays out an agenda for making the economy more innovative and more inclusive.
The Survey, presented in Bratislava by OECD Secretary-General Angel Gurría and Slovak Republic Prime Minister Peter Pellegrini, highlights the importance of policies to enhance the social integration of Roma and maximise the benefits from Slovakia’s integration in global value chains.
“The Slovak economy continues to record remarkable performance, with sustained growth promoting strong employment, solid public finances and a healthy financial system,” Mr Gurría said. “Living standards are gradually catching up with the higher-income OECD countries and nearly all indicators of well-being have been improving for the past 10 years. To sustain economic and social progress going forward, Slovakia needs to ensure this growth is more inclusive, move towards more sophisticated and innovative production and ensure that everyone has the skills and training for the jobs of tomorrow.”
The Survey shows how Slovakia’s manufacturing economy is narrowly specialised around downstream activities, notably in the automotive industry, with low levels of domestic value-added and few spillover effects from Foreign Direct Investment for small and medium-sized enterprises or domestically-owned firms. Employment is vulnerable to automation and the workforce is not sufficiently prepared for the digital transition.
To ensure that Slovakia moves up the global value chain, the Survey highlights the need to improve educational outcomes, foster entrepreneurship and boost innovation, notably by strengthening the capacity to adopt new technologies. Facilitating immigration of skilled workers and improving the business environment, through reforms to restrictive licensing regulations and lengthy insolvency processes, is also required, the Survey said.
With the old-age dependency ratio set to rise steeply in the longer term, fiscal pressure will intensify. This makes it crucial to fully implement the 2012-13 pension reform, including the link of the retirement age to life expectancy.
As part of efforts to ensure everyone has opportunities to benefit equally from economic growth, the Survey points out the need to combat the exclusion facing Roma populations across Slovakia. Better economic and social integration of the Roma would not only reduce poverty rates and improve opportunities for these communities, but would also boost GDP and tax revenues, according to the Survey.
The education system can be made more inclusive, through expansion of high-quality early education, the employment of more Roma-speaking teaching assistants and greater Slovak language support for Roma children. Scaling-up successful EU-funded pilot programmes, such as community centres and health mediators, can boost participation and inclusion.
Strengthening the role of the Plenipotentiary for the Romani Community within the government could also lead to better policy coordination and drive efforts to better involve the Roma in dialogue and cooperation between their communities and public institutions, the Survey said.
Sweden: Invest in skills and the digital economy to bolster the recovery from COVID-19
Sweden’s economy is on the road to recovery from the shock of the COVID-19 crisis, yet risks remain. Moving ahead with a labour reform to facilitate adaptation in a fast-changing economic environment, and investing in digital skills and infrastructure, will be crucial to revive employment and build a sustainable recovery, according to the latest OECD Economic Survey of Sweden.
The pandemic triggered a severe recession in Sweden, despite mild distancing measures and swift government action to protect people and businesses. GDP fell by less than in many other European economies in 2020, thanks to reinforced short-time work, compensation to firms for lost revenue and measures to prop up the financial system, but unemployment still rose sharply. Solid public finances provided room for further stimulus in 2021 to buttress the recovery.
The Survey recommends maintaining targeted support to people and firms until the pandemic subsides, then focusing on strengthening vocational training and skills and increasing investment in areas like high-speed internet and low-carbon transport. Addressing regional inequality, which is low but rising, should also be a priority as the recovery takes hold.
The Survey shows that Sweden has been among the most resilient OECD countries in the face of a historic shock. Yet, like other economies, it faces challenges from demographic changes and the shift to green, digital economies. Investments in education and training, and labour reforms along the lines negotiated by the social partners, will support job creation and strengthen economic resilience. Building on Sweden’s leadership in digital innovation and diffusion will also be key for driving productivity.
After a 3% contraction in 2020, interrupting several years of growth, the Survey projects a rebound in activity with 3.9% growth in 2021 and 3.4% in 2022 as industrial production resumes and exports recover. The recovery in world trade is bolstering the Swedish economy, however the country remains vulnerable to potential disruptions in global value chains.
|The pandemic has aggravated a mismatch in Sweden’s job market, with unfilled vacancies for highly qualified workers coinciding with high unemployment for low-skilled workers and immigrants. The public employment service needs strengthening to provide better support to jobseekers, including immigrants and women, and labour policies should strike the right balance between supporting businesses and workers and supporting transitions away from declining businesses towards growing sectors.|
A rising share of youths and older people in the population, especially in remote areas, is affecting the finances of local governments, which provide the bulk of welfare services. Strengthening local government budgets and ensuring equal welfare provision across the country will require providing tax income to poorer regions more efficiently and raising the economic growth potential across regions through investments in innovation. Improving coordination between government entities and reinforcing the role of universities in local economic networks would help achieve that aim.
Fewer women than men will regain work during COVID-19 recovery
Fewer women will regain jobs lost to the COVID-19 pandemic during the recovery period, than men, according to a new study released on Monday by the UN’s labour agency.
In Building Forward Fairer: Women’s rights to work and at work at the core of the COVID-19 recovery, the International Labour Organization (ILO) highlights that between 2019 and 2020, women’s employment declined by 4.2 per cent globally, representing 54 million jobs, while men suffered a three per cent decline, or 60 million jobs.
This means that there will be 13 million fewer women in employment this year compared to 2019, but the number of men in work will likely recover to levels seen two years ago.
This means that only 43 per cent of the world’s working-age women will be employed in 2021, compared to 69 per cent of their male counterparts.
The ILO paper suggests that women have seen disproportionate job and income losses because they are over-represented in the sectors hit hardest by lockdowns, such as accommodation, food services and manufacturing.
Not all regions have been affected in the same way. For example, the study revealed that women’s employment was hit hardest in the Americas, falling by more than nine per cent.
This was followed by the Arab States at just over four per cent, then Asia-Pacific at 3.8 per cent, Europe at 2.5 per cent and Central Asia at 1.9 per cent.
In Africa, men’s employment dropped by just 0.1 per cent between 2019 and 2020, while women’s employment decreased by 1.9 per cent.
Throughout the pandemic, women faired considerably better in countries that took measures to prevent them from losing their jobs and allowed them to get back into the workforce as early as possible.
In Chile and Colombia, for example, wage subsidies were applied to new hires, with higher subsidy rates for women.
And Colombia and Senegal were among those nations which created or strengthened support for women entrepreneurs.
Meanwhile, in Mexico and Kenya quotas were established to guarantee that women benefited from public employment programmes.
To address these imbalances, gender-responsive strategies must be at the core of recovery efforts, says the agency.
It is essential to invest in the care economy because the health, social work and education sectors are important job generators, especially for women, according to ILO.
Moreover, care leave policies and flexible working arrangements can also encourage a more even division of work at home between women and men.
The current gender gap can also be tackled by working towards universal access to comprehensive, adequate and sustainable social protection.
Promoting equal pay for work of equal value is also a potentially decisive and important step.
Domestic violence and work-related gender-based violence and harassment has worsened during the pandemic – further undermining women’s ability to be in the workforce – and the report highlights the need to eliminate the scourge immediately.
Promoting women’s participation in decision-making bodies, and more effective social dialogue, would also make a major difference, said ILO.
Global electricity demand is growing faster than renewables
Renewables are expanding quickly but not enough to satisfy a strong rebound in global electricity demand this year, resulting in a sharp rise in the use of coal power that risks pushing carbon dioxide emissions from the electricity sector to record levels next year, says a new report from the International Energy Agency.
After falling by about 1% in 2020 due to the impacts of the Covid-19 pandemic, global electricity demand is set to grow by close to 5% in 2021 and 4% in 2022 – driven by the global economic recovery – according to the latest edition of the IEA’s semi-annual Electricity Market Report released today. The majority of the increase in electricity demand is expected to come from the Asia Pacific region, primarily China and India.
Based on current policy settings and economic trends, electricity generation from renewables – including hydropower, wind and solar PV – is on track to grow strongly around the world over the next two years – by 8% in 2021 and by more than 6% in 2022. But even with this strong growth, renewables will only be able to meet around half the projected increase in global electricity demand over those two years, according to the new IEA report.
Fossil fuel-based electricity generation is set to cover 45% of additional demand in 2021 and 40% in 2022, with nuclear power accounting for the rest. As a result, carbon emissions from the electricity sector – which fell in both 2019 and 2020 – are forecast to increase by 3.5% in 2021 and by 2.5% in 2022, which would take them to an all-time high.
Renewable growth has exceeded demand growth in only two years: 2019 and 2020. But in those cases, it was largely due to exceptionally slow or declining demand, suggesting that renewables outpacing the rest of the electricity sector is not yet the new normal.
“Renewable power is growing impressively in many parts of the world, but it still isn’t where it needs to be to put us on a path to reaching net-zero emissions by mid-century,” said Keisuke Sadamori, the IEA Director of Energy Markets and Security. “As economies rebound, we’ve seen a surge in electricity generation from fossil fuels. To shift to a sustainable trajectory, we need to massively step up investment in clean energy technologies – especially renewables and energy efficiency.”
In the pathway set out in IEA’s recent Roadmap to Net Zero by 2050, nearly three-quarters of global emissions reductions between 2020 and 2025 take place in the electricity sector. To achieve this decline, the pathway calls for coal-fired electricity generation to fall by more than 6% a year.
However, coal-fired electricity generation is set to increase by almost 5% this year and by a further 3% in 2022, potentially reaching an all-time high, according to the Electricity Market Report. Gas-fired generation, which declined 2% in 2020, is expected to increase by 1% in 2021 and by nearly 2% in 2022. The growth of gas lags that of coal because it plays a smaller role in the fast-growing economies in the Asia Pacific region and it faces competition from renewables in Europe and North America.
Since the IEA’s last Electricity Market Report in December 2020, extreme cold, heat and drought have caused serious strains and disruptions to electricity systems across the globe – in countries ranging from the United States and Mexico to China and Iraq. In response, the IEA is establishing an Electricity Security Event Scale to track and classify major power outages, based on the duration of the disruption and the number of affected customers. The Texas power crisis in February, where millions of customers were without power for up to four days because of icy weather, was assigned the most severe rating on this scale.
Empowering “Smart Cities” toward net zero emissions
The world’s cities can play a central role to accelerate progress towards clean, low-carbon, resilient and inclusive energy systems. This...
Crime of Ecocide: Greening the International Criminal Law
In June 2021, an Independent Expert Panel under the aegis of Stop Ecocide Foundation presented a newly-drafted definition for the...
Indictment of Trump associate threatens UAE lobbying success
This month’s indictment of a billionaire, one-time advisor and close associate of former US President Donald J. Trump, on charges...
Climate change could spark floods in world’s largest desert lake
For years it appeared as though Lake Turkana, which sits in an arid part of northern Kenya, was drying up....
Sweden: Invest in skills and the digital economy to bolster the recovery from COVID-19
Sweden’s economy is on the road to recovery from the shock of the COVID-19 crisis, yet risks remain. Moving ahead...
The New World Order: The conspiracy theory and the power of the Internet
“The Illuminati, a mysterious international organisation made up of the world’s top political and social elites, controls the workings of...
Western Indian Ocean region has declared 550,000 square kilometers as protected
The Western Indian Ocean region has declared 143* marine and coastal areas as protected – an area covering 553,163 square...
Intelligence2 days ago
USA and Australia Worry About Cyber Attacks from China Amidst Pegasus Spyware
Eastern Europe3 days ago
Latvia developed new tasks for NATO soldiers
Middle East2 days ago
A New Era in US-Jordan Relations
Africa Today3 days ago
Greenpeace Africa responds to the cancellation of oil blocks in Salonga National Park
Development2 days ago
10 new cities chosen for World Economic Forum circular economy initiative
Europe3 days ago
NATO’s Cypriot Trick
Economy2 days ago
The EU wants to cut emissions, Bulgaria and Eastern Europe will bear the price
Green Planet2 days ago
Reusing 10% Will Stop Almost Half of Plastic Waste From Entering the Ocean