scholarly journals Poverty—A Challenge for Economic Development? Evidences from Western Balkan Countries and the European Union

2020 ◽  
Vol 12 (18) ◽  
pp. 7754 ◽  
Author(s):  
Egla Mansi ◽  
Eglantina Hysa ◽  
Mirela Panait ◽  
Marian Catalin Voica

During the last few decades, economists have tried to find a solution to eradicate poverty, especially since the United Nations’ Sustainable Development Goals were launched. The target of Goal 1 is to end poverty in all its forms everywhere. While income inequality and unemployment have played a major part in contributing to poor wellbeing in the world, other factors such as political instability, a lack of good investment opportunities, and living conditions have contributed to it as well. Thus, in this work, the authors analyze the factors that impact poverty and compare these results between countries within the European Union and post-communist countries that include the Western Balkan (WB) countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia. The method used consists of both descriptive statistics and multiple regression analysis using the fixed effect model where poverty is taken as the dependent variable. The data used in this study are gathered from the World Bank and Legatum Prosperity, during the period between 2009 and 2018. The results show that income inequality does indeed impact the further progress of poverty for both the EU and WB, while economic development in terms of GDP is shown to have a more significant impact on EU than in WB, where the most significant impact was through income per capita. Other factors such as education, investment environment, and especially unemployment also significantly impacted on decreasing the poverty rate in both economic zones.

Author(s):  
Andrej Kóňa

Europe has the strongest and largest tourism in the world. As in times of economic prosperity, the industry can prosper, in the case of a change in the economic environment as a result of a crises, it is hit hard and the tourism industry throughout the European Union is suffering billions of euros in damage. It is the case of all post-communist countries and also in Slovak Republic. The effects of such fluctuations are all the greater for the country´s GDP because they do not have contingency plans in place and solutions are often chaotic or implemented too late. The article assesses the impact of several crises, including the current one associated with COVID-19 and predicts a possible approach to mitigate the consequences of the crisis and at the same time better manage the future crisis.


2019 ◽  
Vol 31 (1) ◽  
pp. 135-141
Author(s):  
Galina Zaharieva ◽  
Karina Sarkisyan-Dikova ◽  
Zdravko Lyubenov

Transport is considered one of the key sectors in terms of economic development. The quality of transport services and transport infrastructure is essential for the growth of the economy, the regular production operations in other sectors of the economy, and the satisfaction of people’s needs. As a full member of the European Union (EU), Bulgaria is committed to adopt and implement all of its internal policies and regulations, including those in the field of transport. Over the last two decades, the Community's efforts have been directed at building a well-functioning single European transport area, a transport system that is competitive and at the same time satisfies the contemporary social and environmental requirements. Therefore, a number of legislative changes concerning all modes of transport (rail, air, road and water) have been made. They all have a certain effect for the sector on a pan-European and national scale as well as for its contribution to economic development.The main objective of this paper is to analyze the contribution of transport services to the economic development of Bulgaria. The analysis is based on statistical data from various sources, such as the World Trade Organization (WTO), the World Bank, Eurostat and the National Statistical Institute of Bulgaria. These statistics include the number of persons employed in the sector, the national GDP level, and the volumes of export and import of goods and services. The analysis covers the period 2005-2017, which includes years from Bulgaria’s pre-accession and post-accession period.The results from the analysis show that transport services are a substantial part of the services sector in the country. During the investigated period the actual volumes of both exports and imports of transport services are increasing, while in relative terms the trend is different. A substantial part of the employed persons In Bulgaria are engaged in the sector of transport services – in 2017 they were 210.6 thousand, or 6.7% of all employed persons. Comparatively, according to data from Eurostat, this sector in the European Union provided employment for about 11 million people in 2016, which is more than 5% of the total employment in the Union. The paper also discusses the European regulations concerning the transport sector and the benefits from its development.


2020 ◽  
Vol 12 (2) ◽  
pp. 592
Author(s):  
Sorin-Iulian Cioacă ◽  
Silvia-Elena Cristache ◽  
Mariana Vuță ◽  
Erika Marin ◽  
Mihai Vuță

Information and communication technologies (ICT) play a central role at the European level because it fosters innovation and increases productivity through an enlarged access to information. As such, the main objective of this work was to assess the impact of various ICT core indicators at the European Union level on two of their sustainable development goals: economic growth and reduction of inequality. To this purpose, we used panel data models based on data collected from the Eurostat database. We proposed two panel data regression models, according to which we found a positive statistically significant relationship between the variable measuring level of internet access and change in GDP per capita. We also found a negative relationship between the transition towards a digital society and the dependent variable INEQ_INC, namely an increase of 1% of ICT sector share in GDP will lead to a decrease of 0.27% of income inequality distribution. This result showed that the progress made in implementing a digital society may decrease societal income inequality.


2010 ◽  
Vol 1 (1) ◽  
pp. 25-42
Author(s):  
Dorota Zbierzchowska

Estonia is an example of a country, which from the beginning of its transformation employed rigid course regime in the form of a currency board. After successful suppression of inflation in the first decade of transformation one could expect, that after joining the European Union and the ERMII system Estonia will soon become a member of the Euro area. However within the next few years of economic development Estonian economy could not fulfill the condition of stability of prices. Only in the time of the World Economic Crisis and Estonian great economic breakdown all criteria of convergence were satisfied. In January 2011 the country will become a member of the monetary union. The aim of this paper is to answer the question, whether processes of inflation in Estonian economy were conditioned by the presence of a rigid currency board system. One will examine here, whether there occurs - postulated in theory - convergence of inflation pace between a country employing a currency board system and a country with a reserve currency.


2004 ◽  
Vol 11 (6) ◽  
pp. 610-624 ◽  
Author(s):  
Nüket Örnek Büken ◽  
Erhan Büken

It is accepted throughout the world today that a new approach is needed to health care, one that brings to the forefront the role of economic development. This situation has also increased the importance of the health care sector and health data have begun to take a significant place in countries’ development indicators. Health care services as a basic indicator of social and economic development in Turkey, as in the rest of the world, continue to gain in importance. However, there is a significant difference between health indicators for Turkey, which is a candidate for full membership of the European Union, and European Union countries.


Author(s):  
A. Stavytskyy ◽  
M. Kozub

The article describes the current tendencies of the development of income differentiation processes in the countries of the European Union during the last 10 years. According to the analysis of the i mpact of income inequality on the economy of the countries, there is an inverse relationship between the growth of the gap between the income of different groups of people and the economic development. In order to confirm this conclusion and calculate the real index of income inequality, the dynamic stochastic general equilibrium (DSGE) model has been developed. The authors analysed three macroeconomics objects (household, firm, government), relationships between them and made their own model of eight equations. After that, the index of income inequality of all 27 current members of the European Union has been calculated for the last 10 years. The result shows in the general negative tendency. That is why it is important to choose the right strategic direction for the future development of the country. This DSGE model is a universal model and can be applied to other regions of the world after calibration of the parameters. The improvement of the model is about its expansion by adding other sources of income to get more accurate results. As a conclusion of the article, there was analysed the main directions of reforming the European economy in order to achieve sustainable development.


Author(s):  
N. Matviienko ◽  
V. Matviienko

International tourism is gaining increasing influence on the country’s competitiveness in the world markets. The article is dedicated to Croatia, one of the most successful countries in the former Yugoslav republic. Its disintegration became one of the world’s national conflicts, where many human bloods were shed, by the way, it is similar to that which Ukraine is going through today. The Croats managed to put an end to the separatist conflict, embark on a plan for economic stability and enter the European Union. It was investigated that tourism was one of the priority development areas that the country focused on. It is determined that Croatia is one of the most important tourist destinations in the Mediterranean region, and the tourism industry is developing successfully and generating a stable income. The article considers the system of factors which became the prerequisite for the development of the tourist industry in Croatia. Their role in the development of the modern tourism industry in Croatia has been characterized. The main natural-geographical factors are investigated – relief, climate, water factor and nature reserve fund. It is determined that the advantage of Croatia is not only the clean and warm Adriatic sea but also the availability of thermal waters and mineral springs, as well as a unique natural reserve fund. The significance of human-geographical factors – socio-geographical position, historical-geographical, demographic, cultural-historical, level of socio-economic development, material and technical base and transport factors are revealed. Interestingly, the accession of Croatia to the EU was not prevented either by the territorial problems that the country had with Slovenia, nor the restrained attitude of the population towards European integration, nor the external debt of the country, which exceeded the crisis mark for the European Union. An analysis of the level of economic development in Croatia showed that Croatia had become one of the poorest countries of the EU at the time of its accession to this organization. The analysis of the main indicators of socio-economic development of the country in 2017 showed that today Croatia has become a very attractive European country, which tourists are willing to visit. The basis of Croatia’s economy is the service sector, whose share in the country’s GDP is 70.8%, of which direct revenue from tourism is 10.9%. The key factor in the development of tourism in Croatia is the material and technical base. In particular, the system of accommodation of Croatia for quality and service is not inferior to other European countries. Roads are the most modern and safe in Europe. The importance of tourism development in Croatia for the ecological and geographical factor is analyzed. It has been determined that an effective system of governance has been created in Croatia for the protection of the environment. Effective state tourism policy contributes to improving the attractiveness of Croatia in the tourist market and accelerates integration processes in the world economy.


Author(s):  
Ben Tonra

Ireland joined the European Communities—as they were known then—in 1973, alongside the United Kingdom and Denmark. In many ways, that membership was defined by the bilateral British-Irish relationship. Ireland was, to all intents and purposes, an underdeveloped appendage of the British economy, and membership alongside the United Kingdom was deemed by most of the Irish political and economic establishment as virtually axiomatic. Irish policy makers, however, took full advantage of the opportunities offered by membership; in particular the Common Agricultural Policy, the direct transfers that derived from cohesion, regional and structural funding, and the opportunity to present the country as a successful location for Foreign Direct Investment (FDI) with access to the entire European market. Irish policy makers also positioned themselves rhetorically close to the heart of European construction, which had the added value of creating an Irish antithesis to Britain’s ongoing European discontents. There are perhaps four key themes to be analyzed with respect to Ireland and its membership of the European Union. The first is the question of a small state and its sovereignty. As a former colony, with a bitter experience of imperialism and a strong sense of independence, Ireland’s pooling of sovereignty with its European partners has most often been presented as a desirable trade-off between legal, formal sovereignty and effective sovereignty. Having a seat at the main table—alongside the former imperial hegemon—was deemed to be a major advance, one that allowed the state more effectively to pursue its interests—including the resolution of conflict on the island of Ireland. The 2008 financial collapse, and Ireland’s experience of the EU-led troika briefly challenged that narrative. Subsequently, the support given by the EU26 to a resolution of post-Brexit border relations on the island substantially reinforced Ireland’s European commitment. A second theme of inquiry is that of Irish economic development within the European Union. In contrast to other similarly under-developed states and regions in the EU, Ireland is seen by many as something of a poster child for making a success of EU membership. In the run-up to the 2004 enlargement and shortly thereafter, Dublin was a magnet for central European and Mediterranean states looking to replicate the success of the so-called “Celtic Tiger.” Debate persists, however, on the precise balance of costs and benefits deriving from the model of economic development pursued by the Irish state, the role of Irish government policy therein, and consistency between Irish and EU policy priorities, especially in the field of corporate taxation and the regulation of large multinationals. A third theme of inquiry is the intersection of local, national, and European democracy. Once membership was secured, the European Union became a central and largely uncontested fact of Irish political life. Early constitutional referenda authorizing ratification of EC and then EU treaty changes, while vigorously contested, were overwhelmingly won by coalitions of the mainstream political parties and sectoral interest groups. With both the Nice (2001) and Lisbon (2007) treaties, however, ambivalence, antagonism, and complacency combined initially to thwart ratification. The gap between popular opinion on EU treaty change, which ultimately divided roughly 60/40 in favor, and the near unanimity among political elites and sectoral interests, opened a conversation on the relationship between local, national, and European democracy, which is as yet unresolved, but which many see as having further centralized policy making and distanced it from effective democratic control. A fourth theme is that of Ireland and Europe in the world. Ireland joined the European Communities with no expressed reservations on its further political integration, but as the only non-member of NATO. During those initial debates, economic arguments overwhelmingly predominated, but the political issues were aired and the implications for Ireland’s traditional military neutrality were robustly discussed. The subsequent membership of other non-aligned states ought, on the face of things, to have made Ireland’s position all the more secure. Thus, with a long and popular history of UN peacekeeping and active international engagement, the development of European foreign, security, and defense policies should not have proven to be problematic. In fact, neutrality, security, and defense remain neuralgic issues for Ireland within the European Union and have contributed in a very modest way to the challenges faced by the Union in its attempts to craft a coherent and credible common security and defense policy. This speaks to debates surrounding Ireland’s proper place in the world, the lessons of its own history and the perceived capacity for smaller states to shape the international community. These four themes underpin much research and analysis on Ireland as a member of the European Union. In an unstable contemporary climate, with many well-established expectations under threat, they also serve to identify the pathways available to navigate beyond political and economic instability both for Ireland and the wider European project.


2020 ◽  
Vol 4 (3) ◽  
pp. 36-45
Author(s):  
Lívia Benita Kiss

The significant roles of agriculture in the economic development of a country are determinative. It has already made a substantial contribution to the economic prosperity of advanced countries. Its role in the economic development of less developed countries is of vital importance. The share of the population working in agriculture is declining as countries develop. While less than 5% of the population does in rich countries work in agriculture, more than two-thirds of the people in poor countries. It is predominantly the huge productivity increase that makes this reduction in labor possible. The aim of the study is to provide a comprehensive picture of the situation of agriculture in the European Union from 2010 to 2019, with a particular focus on agricultural income and labor force developments. The number of employed in agriculture has decreased globally (by almost -14%) and in the European Union (by nearly -19%). The added value of agriculture has grown at a similar rate worldwide (by almost +22%) and in the European Union (by almost +23%). Indicators of agricultural income showed indicator A an increase of 25.56%, indicator B 39.11% and index C 20.39% in 2017 compared to 2010. In 2019 the gross value added in agriculture was the most significant in Germany, Spain, France, and Italy. Together, the four countries accounted for 42% gross value added in agriculture of EU-28. Indicator A, B and C of agricultural income showed in 2019 the most significant positive change in Bulgaria, in Denmark and Romania. Employment in agriculture was the highest in Poland and Romania in 2019. Several reasons can explain the differences in the development of agricultural performance in each European Union country. These reasons can be grouped. On the one hand, the location varies from country to country. Due to their different locations, their climatic, natural and ecological conditions are different. Another important difference is the size of the states. On the other hand, the structure and organization of society are different. Thirdly, the economic situation and status of each country are different. Keywords: Agriculture, Labor, Income, Inequality, European Union.


2019 ◽  
pp. 3-6
Author(s):  
D. A. Bogdanova

The article provides an overview of the activities of the European Union Forum on kids' safety in Internet — Safer Internet Forum (SIF) 2019, which was held in Brussels, Belgium, in November 2019. The current Internet risks addressed by the World Wide Web users, especially children, are described.


Sign in / Sign up

Export Citation Format

Share Document