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152. Different Choices, Divergent Paths: Poland and Ukraine
- Author:
- Thorvaldur Gylfason, Eduard Hochreiter, and Tadeusz Kowalski
- Publication Date:
- 12-2022
- Content Type:
- Special Report
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- We compare the economic growth trajectories of Poland and Ukraine since 1990 to try to understand the extent to which the observed growth differentials can be traced to increased efficiency in the use of capital and other factors (intensive growth), rather than to simple accumulation of capital (extensive growth). We stress the role of qualitative factors such as education, governance and institutions. We ask whether the EU perspective and NATO membership played a role. We discuss the closely related histories of the two countries and note the stark differences between them, including their different approaches to the EU vs Russia, full vs incomplete transition to a market economy, and democracy vs anocracy, as well as different initial conditions. We compare key determinants of growth and growth trajectories, using economic as well as social indicators, and trying to disentangle efficiency and accumulation and combine path dependence and the role and scope of creative destruction. While Poland had the shortest and mildest transformation recession among CEE countries, Ukraine has been stagnant, or in decline, since 1990. The statistics we report and the stories we tell suggest that both countries have a complex relationship with democracy and that the nearly threefold difference in per capita GDP at PPP in 2021 in Poland’s favour, with the ratio of investment to GDP similar in both countries, can most plausibly be traced to: (a) Poland’s more extensive and diversified exports, and fewer restrictions on trade, in addition to more comprehensive and quicker restructuring of the national economy inspired by the EU perspective; (b) Poland’s more extensive and better-quality education; (c) Poland’s greater democracy and longer experience of democracy, lower levels of corruption, better governance, and freer press; (d) Poland’s smaller agricultural sector and greater emphasis on manufacturing; and (e) Poland’s lower inflation and higher level of financial development. Furthermore, Poland built market-friendly institutions to EU specifications and joined NATO. Against all this, Ukraine had more economic equality and lower unemployment as well as, from the early 1990s, a lower initial level of income per person, but was hampered by political divisions, path-dependent corruption and poor governance. During the global Covid-19 pandemic, Ukraine apparently suffered fewer deaths than Poland, despite fewer vaccinations.
- Topic:
- Economics, Education, Governance, Reform, European Union, Economic Growth, Inflation, Exports, Transition, and Labor Market
- Political Geography:
- Europe, Ukraine, and Poland
153. Innovation and New Directions: Searching for Novel Paths in Arab Education Reform
- Author:
- Wafa Al-Khadra, Shaikha Jabor Al-Thani, Nathan J. Brown, Heba El-Deghaidy, Rima Karami-Akkary, Marwan Muasher, and Christina Zacharia
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Carnegie Endowment for International Peace
- Abstract:
- In October 2018, Carnegie published a report calling for fundamental educational reform in the Arab world and arguing for the need for that reform to move “from schooling to learning” in order to “serve the needs of pluralistic societies and foster the development of active, responsible citizens who are empowered to deal with complexity and advance constructive change.”1 The report gave a number of recommendations encompassing the different fields within which education takes place: the school, the state, and the society at large. This paper, with many of the authors of the first report participating again, attempts to go in further depth about the findings of the first report. It is evident that Arab governments still see education reform as a top-down effort that continues to perpetuate power relations and authoritarian thinking, sidelining critical and creative thinking among students. The paper places special emphasis on several reform efforts that are being implemented across the Arab region, many in a bottom-up approach that attempts a collaborative approach with governments but is not held hostage to old authoritarian thinking. Rather than simply admiring the problem, the paper attempts to highlight several experiences taking place within different Arab educational systems, not so much because these experiences are necessarily transportable but rather to point out that together with the challenges, there are also successes that can be built on. Consistent with Carnegie’s strategy of working with experts from the region, the paper has once again drawn on the practical experiences of experts from the Qatari, Jordanian, and Egyptian educational systems as well as from the regional, bottom-up experience of the TAMAM project, led by the Arab Thought Foundation and the American University of Beirut and spanning eight different countries. Under the able coordination and facilitation of Nathan J. Brown, these experts have authored a document that I hope will further contribute to the debate on education reform in the region—and help push it forward. I want to acknowledge the Asfari Foundation for their generous financing of this project, and hope that policy recommendations in this paper will help guide future education policies in the Arab world.
- Topic:
- Education, Reform, and Innovation
- Political Geography:
- Middle East and Arab Countries
154. How to save the WTO with more flexible trading rules
- Author:
- Robert Z. Lawrence
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Peterson Institute for International Economics (PIIE)
- Abstract:
- The clash between the Western and Chinese economic systems is threatening the world trading system, with countries increasingly using trade as a tool to coerce other countries. It is imperative to return to an inclusive, rules-based international trading order before the problems in trade spill over into the other geopolitical frictions that plague the world. This Policy Brief argues for a system that steers between two extremes that have emerged: “deep integration,” a single undertaking in which all members of the World Trade Organization (WTO) are expected to adhere to all rules regardless of their preferences and circumstances, and “decoupling,” in which groups of countries centered on the United States or China limit trade with each other. Instead, Lawrence says, the world trading system should have a “variable geometry” that allows open plurilateral agreements among self-selected members that desire deeper integration on particular issues while allowing members that prefer to implement distinctive domestic policies to remain outside some of these agreements and follow a set of more limited rules. The universal rules would permit diversity but still promote trade between all countries through measures such as safeguards that would deal mainly with the most harmful systemic frictions. If the multilateral system is not up to the task of creating such an approach, it is likely to lose its relevance as differentiated regional or topic groupings become increasingly dominant.
- Topic:
- Economics, International Trade and Finance, World Trade Organization, Reform, and Trade
- Political Geography:
- Global Focus
155. The World Bank, the IMF, and the GATT/WTO: Which institution most supported trade reform in developing economies?
- Author:
- Douglas A. Irwin
- Publication Date:
- 12-2022
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics (PIIE)
- Abstract:
- The 1980s and 1990s saw a policy revolution in developing countries in which many highly protected (if not closed) economies were opened to world trade. These reforms were largely undertaken unilaterally, but international economic institutions such as the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade/World Trade Organization supported these efforts. This paper examines the ways in which these institutions promoted, or failed to promote, trade policy reform during this pivotal period.
- Topic:
- Development, World Bank, Reform, Trade, IMF, and WTO
- Political Geography:
- Global Focus
156. A reform strategy to transform energy: From piecemeal to systemwide change
- Author:
- Steven Fries
- Publication Date:
- 08-2022
- Content Type:
- Working Paper
- Institution:
- Peterson Institute for International Economics (PIIE)
- Abstract:
- The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report on Climate Change Mitigation highlights the vast gap between climate change mitigation actions and climate stabilization goals. But its broad policy prescriptions are likely to leave policymakers pondering what specific actions to take. Informed by accumulating evidence on transforming aspects of energy systems like power generation from solar and wind resources and battery electric cars, this paper develops a more pointed energy reform strategy than that of the IPCC to deliver the necessary systemwide changes. It makes the case for two unorthodox policies. One is for governments to provide, in addition to R&D supports, market-creating supports for early deployment of low-carbon technologies in initial markets. The second is to sequence emissions pricing after innovation and market-creating supports and differentiate this pricing across key energy sectors rather than imposing one economywide price. Compared with a single price, targeting higher emissions pricing on sectors that are costlier to decarbonize still promotes cost-effective emission cuts but limits adverse distributional impacts. The paper also considers nonprice barriers to change and ways to coordinate domestic reforms across countries.
- Topic:
- Climate Change, Economics, Reform, Carbon Emissions, and Energy
- Political Geography:
- Global Focus
157. Reigniting labour productivity growth in developing countries: Do structural reforms matter?
- Author:
- Kwamivi Gomado
- Publication Date:
- 08-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- While the negative effects of the 2008 global financial crisis on labour productivity are still fresh in people’s minds, the COVID-19 pandemic raises concerns that productivity will continue to decline. To boost labour productivity and regain economic performance, there is an empirical consensus on the role of structural reforms that allows an efficient reallocation of resources such as labour by reducing rigidities in markets. This study analyses the role of certain structural reforms in improving labour productivity in 35 developing countries over the period of 1990–2014. From the local projection method, our results show that structural reforms have a positive impact on productivity growth in the short and medium terms. The results also illustrate that reforms induce an efficient reallocation of resources within but not between sectors. Taking the business cycle into account in estimates shows that structural reforms stimulate labour productivity growth better in periods of low economic growth.
- Topic:
- Labor Issues, Financial Crisis, Reform, Business, Economic Growth, and Productivity
- Political Geography:
- Global Focus
158. Improving tax policy in Latin America and the Caribbean: A balancing act
- Author:
- Felipe Larraín B. and Pepe Zhang
- Publication Date:
- 12-2022
- Content Type:
- Special Report
- Institution:
- Atlantic Council
- Abstract:
- Latin America and the Caribbean is in the midst of a delicate economic transition, with five of the LAC6 countries attempting a tax reform before their GDPs recovered to pre-pandemic levels.1 As the region confronts rising inflation, the economic spillovers of the war in Ukraine, and budgetary pressures left behind by the pandemic, governments should improve their taxation systems to rebuild fiscal stability, stimulate growth, and enhance equity – a delicate balancing act among overlapping policy priorities. Regional taxes are a heavy administrative burden, requiring nearly twice the time to complete in LAC as in the OECD.2 At the same time, the region struggles with average tax evasion of 5.6 percent of GDP3 and a continued overreliance on corporate income taxes.4 With still-high public debts and fiscal deficits, governments must respond by implementing policies to streamline and modernize revenue collection and management. What are the pros and cons and trade-offs involved in increasing or decreasing the region’s three main taxes (VAT, PIT, and CIT)? How can governments optimize enforcement and collection without resorting to rate changes? What policies outside the tax authority are needed to support tax reforms? How can policymakers better navigate the thorny politics of tax reforms? The following pages provide new analysis and concrete recommendations to address these questions. Drawing on the powerful expertise of its authors in addition to valuable commentary and insight from private, nonpartisan strategy sessions, legal experts, and regional governments, this report is a strong addition to the Adrienne Arsht Latin America Center’s #ProactiveLAC Series, which aims to provide insight and foresight to LAC countries on how to advance economic reactivation and long-term prosperity.
- Topic:
- Markets, Reform, Economic Growth, Tax Systems, Macroeconomics, Fiscal Policy, Financial Institutions, and Inclusion
- Political Geography:
- Latin America and Caribbean
159. Unlocking the Power of Reformers to Achieve Better Progress on Extractives Governance
- Author:
- Columbia Centre on Sustainable Investment
- Publication Date:
- 01-2022
- Content Type:
- Policy Brief
- Institution:
- Columbia Center on Sustainable Investment
- Abstract:
- This project arose out of conversations over the past few years between CCSI staff and high-level officials in extractive industry (EI) ministries in Africa, the Cauca- sus, and Latin America. After describing the need for an array of genuine reforms in the governance of their re- spective countries’ energy and mining sectors, these of- ficials expressed their frustration at the resistance they encountered from within their own government when pushing for reform. These pressures come from above and below.
- Topic:
- Politics, Governance, Reform, Sustainability, and Progressivism
- Political Geography:
- Global Focus
160. Two decades of Tanzanian health policy Examining policy developments and opportunities through a gender lens
- Author:
- Roosa Lambin and Milla Nyyssölä
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Tanzania has undertaken important health sector reforms in the new millennium, and the most recent Health Sector Strategic Plan (2021–26) lays out ambitious targets to achieve universal health coverage. Yet, women in Tanzania continue to face significant barriers in accessing healthcare and the country is grappling with important gender-biased health challenges disadvantaging women. The aims of this paper are two-fold. First, we examine the evolution of Tanzania’s health policy over the past two decades (2000–21) from the perspective of enhancing financial protection for working-age women. Second, we explore policy options for genderresponsive health insurance expansion in the context of Tanzania. Methodologically, the paper draws on a scoping study of diverse literature and data and a review of evidence from other contexts with public health insurance schemes. We find that Tanzania has a fragmented health system that relies on several independent schemes introduced throughout the years, characterized by insufficient risk-pooling. Such a system provides insufficient financial protection for workingage women and female-headed households, which are financially less secure than dual-earner households. Although expanding health insurance coverage represents a viable corrective measure, future reforms must account for women’s lower financial contribution capacity to enable equitable access. Additionally, the policy design requires gender-mainstreamed investments in awarenessraising, service quality, and benefit packages.
- Topic:
- Health Care Policy, Reform, Women, Finance, and Health Insurance
- Political Geography:
- Africa and Tanzania