Competitiveness and Private Sector Development.

Description

With a total population of over 75 million people and a strategic location between wealthy trading partners, with Russia to the east and a vast market of EU citizens to the west, the Eastern Europe and South Caucasus (EESC) region is attractive as a destination for investment and trade. It is endowed with significant human and resources ranging from the black soil in Ukraine that produces some of the best wheat in the world, to energy reserves in Azerbaijan and unexplored water resources in several countries. However, in spite of recent growth - an average of almost 8% of GDP during 1998-2008.  Read more... Foreword Table of Contents Acknowledgments Acronyms and Abbreviations Executive Summary Chapter 1. The Competitiveness Potential of Eastern Europe and South Caucasus Introduction: The unexploited competitiveness potential of the EESC region Endowments A strategically located region Figure 1.1. Investment waves towards Eastern Europe and South Caucasus: net foreign direct investments, selected regions, 1995-2010 A region endowed with plenty of natural wealth Above-average literacy rates Recent performance and challenges: Competitiveness needs to be enhanced. GDP growth recovers after the financial crisis but not to previous ratesFigure 1.2. Real GDP growth 1997-2015 (annual percentage change) Low but fast-growing labour productivity Figure 1.3. Labour productivity (defined as GDP per employee in constant 2 000 USD) relative to the world External financing: Enhancing foreign direct investment flows Table 1.1. FDI in the EESC region, 2009 Figure 1.4. External financing in Eastern Europe and South Caucasus: 1995-2009 Diversifying trading partners The private sector requires further development. Figure 1.5. Private sector share of the GDP in 2009Need to improve education and support human capital development Policy priorities for the region Box 1.1. Policies for Competitiveness Assessment Framework Human Capital Development Table 1.2. Three policy areas covered by the Policies for Competitiveness Assessment framework Access to finance Figure 1.6. Policies for Competitiveness Assessment Framework for EESC across three dimensions Investment policy and promotion Developing a public-private dialogue. Figure 1.7. Gap in perceived state of reform between the public and private sectorsHow to enhance competitiveness Figure 1.8. Competitiveness perception gap in the EESC relative to OECD 2010 Conclusion: Addressing fundamental structural issues to boost competitiveness Notes Bibliography Chapter 2. Strengthening the Pillars of Competitiveness Executive summary Introduction Methodology Figure 2.1. The 12 pillars of competitiveness Table 2.1. Countries from Eastern Europe and the South Caucasus according to their stage of development Table 2.2. GCI results for EESC economies. Competitiveness performance of the EESC region: An international comparisonFigure 2.2. Performance of EESC countries in comparison with transition economies Institutions Figure 2.3. EESC region performance across the 12 pillars of the GCI Figure 2.4. Performance of the EESC region on the Higher education and training pillar of the GCI Figure 2.5. Quality of the educational system in the EESC region between 2005 and 2010 Figure 2.6. Performance of EESC economies on selected indicators from the Goods markets efficiency pillar of the GCI.