The central problems in the economies of Emerging Europe and Central Asia are of structural nature and require domestic, structural solutions,” said Laura Tuck, World Bank Vice-President for the Europe and Central Asia region, at a press briefing during the 2013 World Bank/IMF Annual Meetings.
“Governments in the region need to take action on key challenges such as creating new jobs, addressing issue related to the aging population, and managing their natural resources.”
Unemployment has remained persistently high – more than 10 percent in Central Europe and it keeps rising in the Western Balkans, where more than one out of 5 workers is now looking for a job. Policy-makers are tasked with creating more and better jobs, which will require a multi-sectoral approach that goes beyond traditional labor market measures and regulations.
“Better incentives are needed for people to move into formal jobs, especially for low-wage earners and part-time workers,” said Hans Timmer, World Bank Chief Economist for the Europe and Central Asia region. “In particular, tax systems have to become progressive and designed in a way to allow this move into the formal sector. Additionally, countries should undertake reforms and policies to improve the environment for existing and new firms to thrive and create jobs, and to support workers to be more adaptable, ready-to-work, and mobile so they can tap into new job opportunities.”