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WB Urges Pro-Poor Social Reforms As Poverty And Joblessness Rises

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  • WB Urges Pro-Poor Social Reforms As Poverty And Joblessness Rises

    WB URGES PRO-POOR SOCIAL REFORMS AS POVERTY AND JOBLESSNESS RISES

    PanARMENIAN.Net -
    April 26, 2010 - 13:36 AMT 08:36 GMT

    The Emerging Europe and Central Asia (ECA) Region will face a slow
    recovery from the global economic crisis in the year ahead and
    countries facing tight fiscal pressures should take care to target
    social spending on the most needy and vulnerable, the World Bank said
    at a press briefing at the World Bank/IMF Spring Meetings.

    "Countries of Emerging Europe and Central Asia were hit the hardest by
    the global economic crisis and are likely to be the slowest to resume
    economic growth," said Philippe Le Houerou, World Bank Vice President
    for the Europe and Central Asia Region. "Growth in the Region, which
    had peaked at about 7 percent in 2007, fell to a negative 6 percent
    in 2009. 2010 is going to be a tough year for the Region with growth
    projected at around 3 percent. The prospects for 2011-2013 are only
    slightly better. Rising joblessness is pushing households into poverty
    and making things even harder for those already poor."

    Emerging Europe and Central Asia is a diverse region. Differentiation
    among countries resulted in varying degrees of impact that the crisis
    has had on individual countries and will also define their prospects
    for recovery. 20 out of 30 countries in the Region experienced a
    decline in GDP in 2009, with GDP growth ranging from a negative 18
    percent in Latvia to a positive 9.3 percent in Azerbaijan.

    Overall, countries in the Emerging Europe and Central Asia Region will
    recover from the crisis more slowly than in other regions. According
    to the World Bank, current growth projections for 2011-2013 show the
    Region growing between 3 and 4 percent, as compared to approximately
    5 percent in the Middle East and about 8 percent in developing Asia.

    2010 is expected to be particularly difficult for Europe and Central
    Asia, with GDP growth forecasts about half of the forecast for the
    rest of the developing world.

    The World Bank reports that the Region has faced the greatest fiscal
    pressures among all the world's regions during the global economic
    crisis. Average fiscal deficits amounted to 6 percent of GDP in
    Emerging Europe and Central Asia between 2008 and 2009, compared with
    1 percent in the Middle East, 3 percent in Latin America, and about
    4 percent in developing Asia and Africa.

    The global economic crisis has taken a heavy toll on the Region's
    poverty reduction accomplishments of the last decade. The number of
    poor and vulnerable has risen by about 13 million in 2009, instead of
    falling by 15 million as expected before the crisis, with Armenia,
    Georgia, the Kyrgyz Republic, and Moldova particularly hard hit. As
    a result, 40 million people in Emerging Europe and Central Asia live
    below $2.50 per day, and about 160 million below $5 per day. Also,
    joblessness has been rising across the Region, with middle-income
    countries seeing greater increases in unemployment. According to
    the World Bank, the unemployment rate in 2009 exceeded 10 percent in
    Estonia, Hungary, Latvia, Lithuania, the Slovak Republic, and Turkey.
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