TRANSITION REPORT 2014 Innovation in Transition

Inclusion

Given the importance of economic inclusion for the development of sustainable economic systems, the EBRD assesses the level of inclusion across a range of market sectors in the countries where it works. This assessment was carried out for the first time last year, and Chapter 5 of the Transition Report 2013 provides a detailed explanation of the rationale behind it, as well as the methodology used. Of the three existing measures of inclusion, only the gender gaps and youth gaps have been updated this year. The regional gaps will be updated once the results of the next Life in Transition Survey – which is scheduled for 2015 – are available.

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Most of the changes in the assessment of gender gaps relate to health services and education. In the area of health services, they result from slight improvements in maternal mortality, particularly in the majority of southern and eastern Mediterranean (SEMED) countries (namely Egypt, Jordan and Morocco), as well as in Georgia, Kazakhstan, Moldova, Mongolia, Russia, Serbia, Turkmenistan and Ukraine. However, Lithuania has been downgraded from small to medium owing to a slight increase in maternal mortality. Meanwhile, three countries (Azerbaijan, Belarus and Uzbekistan) have made some progress in education by closing the gender gap in terms of enrolment in and completion of secondary and tertiary education, leading to upgrades. At the same time, completion rates for primary education have decreased among the female population of Bulgaria, Jordan and Romania, leading to downgrades. In the areas of labour practices, access to finance, and employment and firm ownership, gender gaps remain medium to large overall (particularly in the SEMED countries, where gaps are large across all three dimensions).

As regards youth gaps, most upgrades and downgrades are concentrated in the fields of education, financial inclusion and labour market structure. There have been a few upgrades in terms of the quality and quantity of education, driven by better PISA scores (Albania and Montenegro) or increases in the number of years of schooling (Bulgaria, Jordan, Latvia and Romania). Changes to the flexibility of hiring, firing and wage determination in the labour market have led to three downgrades (Bosnia and Herzegovina, Georgia and Romania) and two upgrades (Estonia and Hungary). In terms of financial inclusion, changes generally reflect improvements in the area of access to financial services, resulting in just one downgrade (Georgia) and four upgrades (Jordan, Latvia, FYR Macedonia and the Kyrgyz Republic). Opportunities for young people have not changed much in the past year, so gaps remain large in a number of countries, particularly in the SEMED region, as well as south-eastern Europe.

TABLE S.4
Inclusion gaps for gender
  Legal regulations Health services Education Labour policy Labour practices Employment and firm ownership Access to finance
Central Europe and the Baltic states  
Croatia Negligible Small Negligible Medium Large Small Small
Estonia Negligible Small Negligible Small Large Medium Medium
Hungary Negligible Small Negligible Negligible Medium Medium Medium
Latvia Small Medium Negligible Small Large Medium Small
Lithuania Negligible Medium Negligible Small Medium Medium Medium
Poland Small Small Negligible Small Medium Medium Medium
Slovak Republic Small Small Negligible Small Medium Medium Medium
Slovenia Negligible Small Negligible Small Medium Medium Small
South-eastern Europe  
Albania Negligible Medium Small Small Large Large Large
Bosnia and Herzegovina Negligible Medium Negligible Medium Large Large Medium
Bulgaria Negligible Small Small Small Large Medium Medium
Cyprus Not available Medium Negligible Not available Not available Small Large
FYR Macedonia Small Medium Small Small Large Medium Medium
Kosovo Not available Not available Not available Not available Not available Not available Large
Montenegro Small Medium Negligible Medium Large Medium Medium
Romania Negligible Medium Small Small Large Medium Medium
Serbia Small Small Negligible Medium Large Large Small
Turkey Small Small Medium Small Large Large Large
Eastern Europe and the Caucasus
Armenia Medium Medium Negligible Small Large Large Medium
Azerbaijan Negligible Medium Negligible Medium Large Medium Large
Belarus Small Small Negligible Medium Large Small Medium
Georgia Small Medium Negligible Small Large Medium Small
Moldova Small Small Negligible Small Large Small Medium
Ukraine Small Small Negligible Small Large Medium Medium
Russia Small Small Negligible Medium Large Medium Medium
Central Asia
Kazakhstan Small Medium Negligible Medium Large Large Medium
Kyrgyz Republic Medium Large Negligible Medium Large Medium Small
Mongolia Small Medium Negligible Medium Large Medium Small
Tajikistan Medium Large Medium Small Large Medium Large
Turkmenistan Large Medium Small Medium Large Large Not available
Uzbekistan Medium Medium Small Medium Large Large Large
Southern and eastern Mediterranean
Egypt Medium Medium Medium Medium Large Large Large
Jordan Medium Medium Small Medium Large Large Large
Morocco Medium Medium Medium Medium Large Large Large
Tunisia Small Medium Small Small Large Large Large
Comparator countries
France Negligible Small Negligible Small Medium Medium Medium
Germany Negligible Small Negligible Negligible Medium Small Medium
Italy Negligible Small Negligible Small Medium Large Large
Sweden Negligible Small Negligible Negligible Medium Small Medium
United Kingdom Negligible Small Negligible Small Medium Medium Medium

Source: EBRD.
Note: Methodological changes have been made in the following areas: employment and firm ownership, access to finance and labour practices. These are driven mainly by amendments to the BEEPS questionnaire. Please refer to the methodological notes in the online version of this Transition Report (tr.ebrd.com) for further details.

TABLE S.5

Inclusion gaps for youth
  Labour market structure Opportunities for youth Quantity of education Quality of education Financial inclusion
Central Europe and the Baltic states
Croatia Medium Large Small Medium Medium
Estonia Small Medium Negligible Medium Small
Hungary Medium Medium Negligible Small Medium
Latvia Small Medium Negligible Medium Small
Lithuania Medium Medium Small Medium Large
Poland Medium Medium Small Medium Medium
Slovak Republic Medium Large Small Large Medium
Slovenia Medium Small Small Small Negligible
South-eastern Europe
Albania Medium Large Small Medium Negligible
Bosnia and Herzegovina Medium Large Medium Not available Small
Bulgaria Small Large Negligible Medium Small
Cyprus Small Large Small Medium Medium
FYR Macedonia Medium Large Medium Large Small
Kosovo Not available Not available Not available Not available Not available
Montenegro Medium Large Small Medium Medium
Romania Small Large Negligible Medium Small
Serbia Small Large Large Medium Large
Turkey Medium Large Large Medium Large
Eastern Europe and the Caucasus
Armenia Small Large Small Medium Negligible
Azerbaijan Medium Large Small Large Small
Belarus Not available Medium Negligible Not available Medium
Georgia Small Large Negligible Medium Medium
Moldova Medium Large Small Large Negligible
Ukraine Medium Small Small Large Negligible
Russia Medium Medium Negligible Medium Medium
Central Asia
Kazakhstan Small Medium Small Large Medium
Kyrgyz Republic Medium Large Medium Large Negligible
Mongolia Small Medium Large Not available Small
Tajikistan Medium Medium Small Not available Negligible
Turkmenistan Not available Not available Small Not available Negligible
Uzbekistan Not available Not available Small Not available Small
Southern and eastern Mediterranean
Egypt Medium Large Large Not available Negligible
Jordan Small Large Medium Medium Medium
Morocco Medium Large Large Large Medium
Tunisia Medium Large Large Large Small
Comparator countries
France Medium Medium Negligible Small Medium
Germany Medium Negligible Small Small Negligible
Italy Medium Large Negligible Medium Large
Sweden Medium Medium Small Small Small
United Kingdom Small Medium Small Small Negligible

Source: EBRD.
Note: Methodological changes have been made in the following areas: opportunities for youth and financial inclusion. These are driven mainly by the availability of new data. Please refer to the methodological notes in the online version of this Transition Report (tr.ebrd.com) for further details.

TABLE S.6

Inclusion gaps for regions
  Institutions Access to services Labour markets Education
Central Europe and the Baltic states
Croatia Medium Medium Small Medium
Estonia Small Medium Negligible Small
Hungary Medium Small Large Small
Latvia Small Medium Small Medium
Lithuania Medium Large Small Small
Poland Medium Medium Medium Small
Slovak Republic Medium Small Medium Small
Slovenia Small Negligible Small Small
South-eastern Europe
Albania Medium Medium Large Small
Bosnia and Herzegovina Large Large Large Small
Bulgaria Medium Medium Medium Medium
Cyprus Not available Not available Not available Not available
FYR Macedonia Small Medium Large Large
Kosovo Medium Large Large Small
Montenegro Medium Medium Large Small
Romania Medium Large Medium Medium
Serbia Large Medium Large Large
Turkey Medium Large Medium Large
Eastern Europe and the Caucasus
Armenia Medium Medium Large Medium
Azerbaijan Medium Small Large Small
Belarus Medium Negligible Small Negligible
Georgia Negligible Large Large Medium
Moldova Medium Large Large Large
Ukraine Medium Medium Medium Small
Russia Medium Small Small Medium
Central Asia
Kazakhstan Small Small Medium Medium
Kyrgyz Republic Medium Large Medium Small
Mongolia Negligible Medium Medium Medium
Tajikistan Medium Large Large Small
Turkmenistan Not available Not available Not available Not available
Uzbekistan Large Medium Large Large
Southern and eastern Mediterranean
Egypt Not available Not available Not available Large
Jordan Not available Not available Not available Small
Morocco Not available Not available Not available Large
Tunisia Not available Not available Not available Not available
Comparator countries
France Negligible Medium Medium Medium
Germany Negligible Large Negligible Medium
Italy Large Medium Negligible Small
Sweden Medium Small Small Small
United Kingdom Medium Small Small Large

Source: EBRD.
Note: Please note that the regional gaps have not been updated this year, as they are largely based on the results of the EBRD-World Bank Life in Transition Survey, the next round of which is scheduled for 2015.