Connect with us

Finance

Finland: boost employment and productivity growth to avoid lasting scars from COVID-19 crisis

Published

on

The COVID-19 crisis has plunged Finland into its deepest recession since the early 1990s even though swift government support has cushioned the shock, making for a smaller output drop than in many other OECD countries. To limit the scars from the pandemic and sustain the recovery, Finland should address underlying challenges such as boosting employment and productivity, according to a new OECD report.

The latest OECD Economic Survey of Finland notes that the COVID-19 crisis hit against a background of slowing economic growth and rising financial stability risks. The government should stand ready to provide further support to firms and workers if necessary, then focus on getting people back into viable jobs and restoring public finances. Enhancing education and skills, improving wage flexibility and reducing barriers to competition in sectors like transport, energy and retail, would help to spur productivity growth and bolster the recovery, the Survey says.

“Finland’s effective management of the pandemic is to be commended. It is now vital to support economic activity and reduce unemployment to pre-crisis levels to avoid lasting social and economic scars,” said Alvaro Pereira, Director of Country Studies in the OECD Economics Department, presenting the Survey. “Increasing the employment rate, particularly among seniors, and boosting productivity through enhancing the supply of skilled workers and reforming regulations that hamper competition, would prevent a long-term erosion in relative living standards.”

Finland’s GDP shrank by 5% in the first half of 2020, a historic contraction, but among the mildest of OECD countries thanks to targeted confinement measures that limited loss of mobility, and financial support that prevented mass bankruptcies and saved jobs. Job losses and bankruptcies will likely increase in the short run, as relief measures run out. The Survey projects Finland’s 2020 GDP will shrink by 3.3% and recover only gradually with growth of 2.1% in 2021 and 1.8% in 2022, led by private consumption and exports.

The temporary layoff scheme played a key role in protecting jobs and incomes, and Finland has long enjoyed low income inequality and relative poverty by international standards. However, 15% of workers aged 15-74 have been temporarily or permanently laid off since the crisis. The impact has been hardest on lower-income households who tend to be less able to switch to teleworking and have less secure contracts. Furthermore, some 25% of temporarily laid-off workers were not eligible for earnings-related unemployment benefits because they were not members of unemployment insurance funds. The Survey thus recommends creating a government unemployment insurance fund into which all workers – or all workers who are not members of another fund – would be automatically enrolled.

Prior to the crisis, Finland’s employment rate was already low by Nordic standards, reflecting the low employment rate of older workers. They still have access to early retirement routes, in contrast to their Nordic counterparts. Phasing out extended unemployment benefit for older workers would help to increase the employment rate of seniors.

Productivity growth is low in Finland compared with other European economies, owing to skills shortages and high regulatory barriers to competition in some sectors. The Survey recommends encouraging more school leavers to enter tertiary education by reforming the highly selective admission system and increasing the number of study places. Softening the country’s restrictive product market regulations and coordinating wage bargaining across sectors could help to gain competitiveness.

The Survey notes that recovery from the COVID-19 crisis provides an opportunity to move to a more environmentally sustainable growth trajectory compatible with meeting Finland’s demanding GHG emissions abatement targets.

Continue Reading
Comments

Finance

How to Make Your Hospitality Business More Sustainable

Published

on

Climate change and its impact on the world has been a major news story for decades, but it’s only in recent years that awareness has been pushed to the fore. This is thanks to the actions of activists such as Greta Thunberg and Sir David Attenborough.

However, it’s also because 2020 was the joint hottest year on record, tying with 2016 – although, unlike 2016, there was no El Nino event last year to contribute to these temperatures.  

While there is pressure on companies to play their part and think more sustainably, there are things that smaller businesses can do too. As someone who runs a hospitality business, you can make operations more environmentally aware. If you want to think green, here are some ideas to help. 

Consider the materials

How much paper does your business use? There’s a real trend for cardboard menus and paper flyers showcasing the latest dining deals. Hotel rooms are filled with directories and leaflets, too – and these need replacing when they get tatty.

To resolve the issue, try switching to digital. Create online menus that diners can access, have a screen detailing the latest meal deals and specials, and introduce tablets to bedrooms in your hotel. If you’re reluctant to include tablets, try creating a directory on the TV where guests can browse the services your hotel offer, from breakfast serving times to the food on offer.

Rethink utilities

How much electricity does your business use a day? How much water is wasted?

Try looking at introducing motion sensitive lighting to avoid empty rooms being lit. Also, while it can be tricky to encourage guests to think about the water they use, you can get your staff to set an example by switching off taps when not in use. Even small changes can both save energy and money.

Manage waste

Hospitality businesses see a lot of waste, especially hotels. There’s paper waste, bottles, and food waste to consider, among other things.

Having a robust recycling system in place can help to keep your business sustainable. Introduce recycling bins in guest bedrooms and have these in offices too to encourage best practice.

Additionally, separate food waste bins for your restaurant are an essential part of waste management. By keeping food waste separate, it can be easily removed from the premises.

As with any waste management, there are risks here. Staff could cut themselves on glass or encounter other injuries, so think about how to keep your team safe while they do their job. Arm protection and overalls, for instance, can be useful.

Look at the décor

As well as the day-to-day operations in your business, it’s worth thinking about the materials used in the design and décor. Where possible, try to source reclaimed furniture and trawl the vintage and flea markets for beautiful pieces that could work well in your hotel foyer or guest rooms.

By taking the time to reassess the way your business runs, you could find that you’re lowering your carbon footprint and becoming more sustainable.

Continue Reading

Finance

Uzbekistan Continues to Modernize its Tax Administration System

Published

on

 The World Bank’s Board of Executive Directors approved today the Tax Administration Reform Project in Uzbekistan, which is designed to improve the operational efficiency and effectiveness of the State Tax Committee (STC) and deliver better services to local taxpayers.

The project will be supported by a $60 million concessional credit from the International Development Association (IDA), with financing provided to the Government at a very low-interest rate and a repayment period of 30 years.

“The Government of Uzbekistan has prioritized reforms in the tax administration system to create a better business and investment environment. The new project will help the STC improve its work in the interest of taxpayers,” said Marco Mantovanelli, World Bank Country Manager for Uzbekistan. “In particular, the project will allow to broaden the tax base, leading to a reduction in the informal sector of the economy, which is estimated to be around 50% of GDP; to increase tax revenues; and to help firms and companies create new jobs, benefiting from a more efficient tax administration system.”

The project includes three key components directed at improving the STC’s operational, institutional, technological and human resource capacities, and promoting voluntary compliance across Uzbekistan.

Component 1 will invest in automating the STC’s core tax administration business processes. This includes developing the STC’s new tax management information system to reduce paperwork and simplify the process of paying taxes by businesses and individuals countrywide; upgrading hardware and technological infrastructure; creating a new data center for the STC; and improving governance and the planning capacity of the STC’s IT department.

Component 2 will assist with designing and implementing measures to reduce the informal sector of the economy. This includes improving the STC’s enforcement capabilities to detect and discourage tax evasion; encouraging businesses to stay out of the shadows, including through the use of non-tax incentives; and developing cooperative relationships with the private sector, including through designing new or simplified tax policies and procedures and building partnerships to change taxpayers’ behavior.

Component 3 aims to strengthen the STC’s human resource and institutional capacities to attract, develop, and retain skilled and knowledgeable tax officials. This includes improving STC’s human resources management policies and building capacity through the continuous professional development of tax officials. 

Continue Reading

Finance

Top 5 Examples of Best Nonprofit Grant Proposals

Published

on

small-business-economy

Introduction

Compiling a grant proposal is a complicated task. Nonprofits have to conduct ample amounts of research, create multiple drafts and compile everything to fit the criteria of the grant foundation. The odds of getting your proposal accepted are already stacked against you and the best way to ensure success is by staying prepared. One way you can make your grant proposal air-tight is by reviewing successful grant proposals. You can add points from previously successful documents to strengthen your case. 

Preparation is key

Drafting a grant proposal can be a lengthy process. It is a good idea to start gathering data and reviewing it beforehand. Reviewing successful grant proposals can help you get new ideas and perhaps, inspiration even. You can find a list of effective examples on the internet and we have compiled a few here to make things easy for you.

5 Examples of effective grant proposals

To ease the understanding, the examples are divided as per the sectors for which nonprofits often work.

Education

Education is a key foundation for society and if you are looking to seek a grant to support an educational initiative, this particular example might be conveniently helpful.

Salem Education Foundation: This particular grant was submitted by a school that sought to receive funding for enriched learning opportunities that lay beyond the scope of a conventional classroom. This particular grant proposal was written for history students of the school.

Youth

Children can be the most at-risk group of society and there are a multitude of nonprofits that aim to help them. Consequently, there are a huge number of grants that aim to help children fulfill their potential and lead happy lives. The following example is how a grant proposal should look like when the focus of their goal is improving the lives of children.

William T. Grant Foundation: This grant is given to those groups that actively conduct research that is solely focused on improving the lives of young people in the United States. The foundation often publishes accepted grant proposals to help guide those looking to apply. Review their proposals for a better idea on how to craft yours.

Individual and family support

If your nonprofit is actively seeking to serve the disadvantaged population of society, then you will need to submit a proposal that highlights their plight. The following proposal is an example that will help you decide the inclusions for your proposal.

Kennett Area Senior Center: This particular grant was submitted by the Kennett Area Senior Center to the community grant foundation. The grant proposal was a request for funds to provide assistance and necessary services for senior citizens.

Arts

If your nonprofit is aiming to raise funds for an arts program or a project, the following example demonstrates what your grant proposal should look like. Upon review you will be clear on what to include in your documentation:

University of Minnesota’s Imagine Fund: Take a look at various successful proposals that were submitted to the Imagine Fund program. This program is known for supporting arts-related projects.

Science

Whether it is scientific research, conservation, or any form of scientific endeavor, the following proposals can provide you with ideas for your grant proposal. You can review them and figure out what to include and how you can solidify the strength of your proposal.

NIAID: The National Allergy and Infectious Diseases grants various funds to institutes and nonprofits looking to drive advancement in the field of science and scientific research. You can peruse through various types of successful grants and figure out what made each one stand out.

Final thoughts

These examples are just some of many grant proposals that have achieved success. By studying them and reviewing the literature, your nonprofit can take away ideas and insights which can be useful in drafting your proposal.

Continue Reading

Publications

Latest

Trending