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81. Financing for the Polish economy: prospects and threats

Author:
Andrzej Halesiak, Ernest Pytlarczyk, Mariusz Wieckowski, and Stefan Kawalec
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
In a properly functioning economy, finance has important role to play in making main sectors of the economy – production, trade, services – to thrive. One of the most important – and often unappreciated – channels by which finance affects the processes taking place in the real sector is the selection of investment projects. It is banks and financial intermediaries that to a great degree decide which projects are carried out in the economy at a given moment, and which are not. If financial institutions are excessively conservative (which today is often an effect of the tight regulatory environment), they will prefer low-risk projects with high levels of collateral (e.g. mortgage loans). A financial system oriented this way will rarely be a source of problems, but at the same time not inclined to finance innovative projects with high potential to benefit the economy. Thus for any economy, a very important question is whether its regulatory framework smartly balances both of these aspects: financial system safety and the need to take on risk. When analyzing the functioning of the financial system, it’s worth noting the gradual blurring of certain traditional boundaries. While decades ago households were the main source of savings in the economy, and the borrowers were enterprises and the public sector, today both households and companies are on both sides, as suppliers and receivers of capital. The boundary between the functioning of banks and capital markets is also increasingly blurred. Today banks operate broadly through the capital market, both as acquirers of securities and as issuers. One area that has been developing dynamically in recent years is the flow of financial resources bypassing traditional intermediaries: direct lending through the peer-to-peer (P2P - direct financing of a project by business partners) and crowdfunding platforms (fundraising by collecting money online).
Topic:
Demographics, GDP, Financial Markets, Economy, Banks, Investment, and Trade
Political Geography:
Europe and Poland

82. Why do we need self-employed persons? Some economic reflections, mainly tax related ones

Author:
Adam Adamczyk, Leszek Morawski, and Jarek Neneman
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
For many years, we have been hearing about the need for innovation and entrepreneurship. Successive Polish government declare their support for entrepreneurs and expand the catalog of privileges, mainly related to taxes and mandatory contributions. Not infrequently, in these discussions the self-employed are equated with entrepreneurs. In this work, we will seek an answer to the questions: Who, then, are the self-employed? Are they really entrepreneurs? Should we support their activities? And finally the fundamental question: What does the economy get from the self-employed? In this work we point out that the differences in rates of self-employment between countries may result from differences in taxation on the labor provided by self-employed and salaried workers. In the main part of the work, taking advantage of the potential of the EUROMOD tax-benefit microsimulation model, we show that in Europe there is no single model of taxation of work conducted as one’s own business. In the majority of the tax-contribution systems we examined, the profitability of employment or self-employment changes along with changes in income. In light of the regressivity of the burdens on the self-employed, as a rule it begins to be profitable only above a certain income level. In the first part of the work we define the self-employed as those who run a business, and later we distinguish within this group entrepreneurs, meaning those who take on risk and create innovations. Discussing the advantages and disadvantages of self-employment from the point of view of the self employed and the employer, we point out that the benefits – including systemic (tax and contribution) benefits, outweigh the disadvantages. We also discuss in more detail the imposition of income tax on the self-employed. In the second part we present changes in the value of self-employment over the last 25 years. Here we use data from the World Bank and certain data points from the European Union Statistics on Income and Living Conditions (EU-SILC). They allow us to observe how the relationship between the self-employed and the economy is changing: The significance of services provided for other businesses is growing. Additionally, we can see that the significance of self-employment is falling. In Poland the level of (non-agricultural) self-employment is low. The dynamics of the rate of self employment indicate that the influence of legal regulations on the scale of self-employment is secondary. It seems that in this case, technological and demographic factors are much more significant.
Topic:
Demographics, Labor Issues, Employment, Business, Social Policy, Tax Systems, and Fiscal Policy
Political Geography:
Europe and Poland

83. A Gendered Perspective on Changing Demographics: Implications for Labour, Financial and Digital Equity

Author:
Florencia Caro Sachetti, Gala Díaz Langou, and Fernando Filgueira
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Center for the Implementation of Public Policies for Equity and Growth (CIPPEC)
Abstract:
The demographic transition has been one of the greatest phenomena affecting development worldwide and its effects on gender equity are undeniable. Lower fertility and ageing populations create both challenges and opportunities for gender equity, while women still face obstacles towards labour, financial and digital inclusion. G20 countries are at very different stages of the process, yet most have birth rates below replacement levels and population is ageing. Adopting a comprehensive and intersectional approach to women’s economic empowerment that contemplates age – and gender – specific rights, priorities and needs is crucial to both fulfilling women’s rights and facing the challenges associated with demographic change.
Topic:
Demographics, Gender Issues, Labor Issues, Inequality, Finance, Digital Economy, and Economic Development
Political Geography:
Global Focus

84. The Demographic Transition Theory of War: Why Young Societies Are Conflict Prone and Old Societies Are the Most Peaceful

Author:
Deborah Jordan Brooks, Stephen G. Brooks, Brian D. Greenhill, and Mark L. Haas
Publication Date:
02-2019
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The world is experiencing a period of unprecedented demographic change. For the first time in human history, marked disparities in age structures exist across the globe. Around 40 percent of the world's population lives in countries with significant numbers of elderly citizens. In contrast, the majority of the world's people live in developing countries with very large numbers of young people as a proportion of the total population. Yet, demographically, most of the world's states with young populations are aging, and many are doing so quickly. This first-of-its kind systematic theoretical and empirical examination of how these demographic transitions influence the likelihood of interstate conflict shows that countries with a large number of young people as a proportion of the total population are the most prone to international conflict, whereas states with the oldest populations are the most peaceful. Although societal aging is likely to serve as a force for enhanced stability in most, and perhaps all, regions of the world over the long term, the road to a “demographic peace” is likely to be bumpy in many parts of the world in the short to medium term.
Topic:
Demographics, War, International Security, Democracy, and International Relations Theory
Political Geography:
Russia, United States, Japan, China, Germany, and Global Focus

85. Demographic Factors Affecting the Level of Financial Literacy in Rural Areas: The Case of Vietnam

Author:
Phùng Thanh Quang and Khuc The Anh
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
This article measures the level of financial literacy in the rural areas of Vietnam. The financial literacy is usually concerned by financial institutions and government organizations. This is considered to be an indicator that contributes to the assessment of the quality and potential growth of the financial system. In the article the determinants of financial literacy in Vietnam are identified. In result the authors propose a designed financial literacy enhancement programme for implementation.
Topic:
Agriculture, Demographics, Finance, Rural, and Literacy
Political Geography:
Asia and Vietnam

86. Harnessing the Demographic Dividend to Fast-Track Industrialisation: A Case in the ICT sector

Author:
Tengetile G. Hlophe and Thula Dlamini
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Eswatini ranks very low in the Global Competitiveness Index (GCI). Conceivably, this draws from the fact that Eswatini is a consumer of goods and services produced from outside the economy. In this paper, we use data from the GCI, International Telecommunications Union (ITU), and Global Innovation Index (GII) to argue that Eswatini should focus its industrial policy towards the creation of tacit productive capacities amongst SMEs in the manufacturing sector to drive large-scale industrialisation. The paper shows that by doing this, Eswatini will position herself to be a leader in the manufacture of industrial goods in the region and in the long-term be able to attract foreign investors to the country. In particular, the study analyses panel data of 5 African countries to illustrate that manufacturing in the ICT sector could contribute to increased economic growth, particularly if targeted towards technologies that are in high demand among the youth- such as smartphones, laptops, and other similar gadgets. The paper juxtaposes its main treatise with Africa’s youth bulge and shows that with every 1% increase in the youth population there will be a 4.79% increase in the adoption and usage of ICTs by the youth. This suggests that there is an opportunity for the country to anchor its industrial policy on the production of those technologies that are in high demand amongst the youth. The key message in the paper is that building tacit knowledge and skills in the manufacturing of high technology products could reduce youth unemployment, attract foreign investments, and create opportunities for industrial development and industrialisation. The paper concludes with some considerations for industrial policy in Eswatini.
Topic:
Demographics, Development, Manufacturing, Industrialization, and Industry
Political Geography:
Africa and Eswatini

87. Unification in Action? The National Identity of North Korean defector-Migrants: Insights and Implications

Author:
Christopher Green and Stephen Denney
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
What can the resettlement of North Korean defector-migrants into South Korean society today tell us about Korean national identity and the likely challenges of integrating the two Koreas tomorrow? In this paper, we report findings from a 2016 national identity survey of 334 North Korean defector-migrants currently residing in South Korea. It compares responses to that of native South Koreans and considers in-group differences of opinion. Overall, we find no substantive identity divergences between those from North Korea and native South Koreans. We do, however, find evidence of significant in-group identity differences, namely cohort effects. Older defector-migrants are more likely to see their “Koreaness” as defined by ethnocultural traits, feel closer to South Korea, and be more “patriotic” than younger migrants.
Topic:
Demographics, Migration, Refugees, and Domestic Politics
Political Geography:
Asia, South Korea, North Korea, and Korea

88. One City, Two Realities: Jerusalem Public Opinion Survey 2018

Author:
Dan Miodownik and Noam Brenner
Publication Date:
04-2018
Content Type:
Case Study
Institution:
Israel/Palestine Creative Regional Initiatives (IPCRI)
Abstract:
This public opinion survey covers different issues of life in Jerusalem of its Israeli and Palestinian residents. It surveys their expressions about local needs, who they view as their local leadership, their social attitudes and ways of communication. It also explores perceptions of violence, life satisfaction and also questions about the future of Jerusalem and municipal elections. ​ This survey is a part of a larger peacebuilding initiative in Jerusalem called “Building Visions for the Future of Jerusalem: A Bottom-Up Approach”. As such, the survey is one of a few ways to collect and give voice to the residents’ needs and perceptions regarding their life in Jerusalem. Its final objectives are to to better understand the foundations for cooperation between the two populations in this contested city, in order to assist in improving their well-being.
Topic:
Demographics, Territorial Disputes, Public Opinion, and Survey
Political Geography:
Middle East, Israel, Palestine, and Jerusalem

89. Urbanization in Sub-Saharan Africa Meeting Challenges by Bridging Stakeholders

Author:
Jamal Saghir and Jena Santorn
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Urbanization is transforming the world. According to the 2017 Drivers of Migration and Urbanization in Africa report by the United Nations, more than half of the global population now lives in urban areas. This figure is projected to increase to 75 percent by 2050, at a growing rate of 65 million urban dwellers annually. Sub-Saharan Africa (SSA) is often regarded as the world's fastest urbanizing region. Urban areas currently contain 472 million people, and will double over the next 25 years. The global share of African urban residents is projected to grow from 11.3 percent in 2010 to 20.2 percent by 2050. SSA’s 143 cities generate a combined $ 0.5 trillion, totaling 50 percent of the region’s gross domestic product (GDP). Urban centers play a critical role in fighting poverty and sustaining economic growth, and are often considered the future of prosperity in the developing world. While strategic urbanization is highly dependent on national macroeconomic policymaking, city governments, the private sector, development practitioners, and urban planners also have critical roles to play. Linking the urbanization management efforts of different stakeholders presents an opportunity for economic growth in a region undergoing an immense demographical shift.
Topic:
Demographics, Migration, United Nations, Urbanization, Economic Growth, and Private Sector
Political Geography:
Africa and Sub-Saharan Africa

90. What’s next for healthcare in Poland: diagnosis and prognosis

Author:
Alicja Domagała, Christoph Sowada, Krzysztof Kuszewski, Marzena Tambor, and Stanisława Golinowska
Publication Date:
12-2018
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The health protection system is the object of constant pressures and difficulties in mitigating them, and even more so eliminating or at least reducing them. Changes are undertaken under the influence of a one-sided political assessment, the interests of various groups of participants or the protests of successive groups of medical staff. There is no professional and fully documented diagnosis of the system, made by independent experts, which could serve as the basis for a comprehensive health protection reform plan, rather than individual, incidental changes that disrupt the system’s already very fragile balance. A well thought-out reform, properly distributed over time, so that at no point does it cause negative health effects. A reform agreed among stake-holders and adopted with understanding of the need for changes, so that it is supported by society. A reform for which there will be funds, institutions and engaged professionals – leaders in health protection. A reform that won’t be criticized or changed when the government changes. Such a reform is waiting to be presented and debated. We begin this process by pointing out and presenting the system’s main problems. At the top of the list of issues that must be taken up urgently we place the problem of insufficient resources, but associated with other activities that are essential to achieve higher effectiveness in accomplishing health goals. There is no single miraculous way of balancing and fixing the functioning of the health protection system. This requires both greater financing, qualitatively and quantitatively appropriate staffing, and good institutions. Financial resources are a necessary condition but not a sufficient one – if there is no staff or appropriate institutions, and these are shaped over years. In this publication we present four subjects, corresponding to that list of the main issues that must be addressed urgently. We begin with the problem of good governance, meaning achieving a decisive improvement in institutional solutions in health protection. Next we take up the problem of the need for growth in financial outlays, with judicious public and individual responsibility. We strongly accent the need for development in Poland of medical and support staff, presenting the problems of neglect and the deep shortage of professionals, which is currently paralyzing the health service. The final text, though no less important in the group of priority problems in health protection, concerns public health and demands that it be properly valued by treating care for the health of the population as an investment in human capital with a measurable and significant rate of return.
Topic:
Demographics, Health, Labor Issues, Governance, Health Care Policy, Social Policy, and Public Policy
Political Geography:
Europe and Poland