Black Sea and Central Asia PROMOTING WORK AND WELL-BEING Black Sea The Black Sea and Central Asian regions are fascinating because of their political, cultural and Central Asia and economic diversity. With the exception of OECD members Greece and Turkey, all the countries in this region are emerging from transition from the centrally-planned economies of the Soviet era into market-based societies. This transition has created opportunities for development, but has also introduced new problems and fresh challenges for governments and society. PROMOTING WORK AND WELL-BEING Issues such as migration, gender relations, social protection, job creation and ethnic relations need to be tackled, and ways to consolidate development, while not excluding sectors of society, need to be found. This book addresses some of these challenges. It analyses the opportunities and conditions of employment throughout the Black Sea region and Central Asia. It examines how different An OECD Development Centre Economic Outlook countries deal with social issues affecting well-being. It presents, thus, both a country-based view and a whole-region analysis that will be useful for policy makers and civil society in responding to the challenges ahead. Countries covered: ALBANIA, ARMENIA, AZERBAIJAN, BULGARIA, GEORGIA, GREECE, KAZAKHSTAN, KYRGYZ REPUBLIC, MOLDOVA, ROMANIA, RUSSIA, SERBIA, TAJIKISTAN, TURKEY, B TURKMENISTAN, UKRAINE AND UZBEKISTAN. la c k S e a a n d C e n t r a l A s ia P R O M O T ALBANIA IN ARMENIA G W AZERBAIDJAN O R BULGARIA K A GEORGIA N D GREECE The full text of this book is available on line via these links: W KAZAKHSTAN E www.sourceoecd.org/development/9789264047297 L L KYRGYZ REPUBLIC www.sourceoecd.org/transitioneconomies/9789264047297 -B E MOLDOVA Those with access to all OECD books on line should use this link: IN G ROMANIA www.sourceoecd.org/9789264047297 RUSSIA SourceOECD is the OECD online library of books, periodicals and statistical databases. SERBIA For more information about this award-winning service and free trials ask your librarian, or write to us at TAJIKISTAN [email protected]. TURKEY TURKMENISTAN UKRAINE UZBEKISTAN This work is published under the auspices of the OECD Development Centre. The Centre promotes comparative development analysis and policy dialogue, as described at: www.oecd.org/dev ISBN 978-92-64-04729-7 -:HSTCQE=UY\W^\: ����������������������� 41 2008 07 1 P Black Sea and Central Asia PROMOTING WORK AND WELL-BEING DEVELOPMENT CENTRE OF THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD, the OECD Development Centre or of the governments of their member countries. Also available in French under the title: Mer noire et Asie centrale PROMOUVOIR LE TRAVAIL ET LE BIEN-ÊTRE Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2008 OECD freely authorises the use, including the photocopy, of this material for private, non-commercial purposes. Permission to photocopy portions of this material for any public use or commercial purpose may be obtained from the Copyright Clearance Center (CCC) at [email protected] or the Centre français d'exploitation du droit de copie (CFC) [email protected]. All copies must retain the copyright and other proprietary notices in their original forms. All requests for other public or commercial uses of this material or for translation rights should be submitted to [email protected]. development centre oecd development centre ocde the development centre of the organisation for economic co-operation and development was established by decision of the oecd council on 23 october 1962 and comprises 23 member countries of the oecd: Austria, Belgium, the czech republic, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, luxembourg, mexico, the netherlands, norway, poland, portugal, Slovak republic, Spain, Sweden, Switzerland, turkey and the United Kingdom as well as Brazil since march 1994, chile since november 1998, India since February 2001 romania since october 2004, thailand since march 2005, South Africa since may 2006 and egypt, Israel and viet nam since march 2008. the commission of the european communities also takes part in the centre’s Governing Board. the development centre, whose membership is open to both oecd and non-oecd countries, occupies a unique place within the oecd and in the international community. Members finance the Centre and serve on its Governing Board, which sets the biennial work programme and oversees its implementation. the centre links oecd members with developing and emerging economies and fosters debate and discussion to seek creative policy solutions to emerging global issues and development challenges. participants in centre events are invited in their personal capacity. A small core of staff works with experts and institutions from the oecd and partner countries to fulfil the Centre’s work programme. The results are discussed in informal expert and policy dialogue meetings, and are published in a range of high-quality products for the research and policy communities. the centre’s Study Series presents in-depth analyses of major development issues. Policy Briefs and Policy Insights summarise major conclusions for policy makers; Working Papers deal with the more technical aspects of the centre’s work. For an overview of the centre’s activities, please see www.oecd.org/dev ISBn: 978-92-64-04729-7 © oecd 2008 BlAcK SeA And centrAl ASIA: promotInG WorK And Well-BeInG fore foreword word this book is a product of the development centre’s work on monitoring and analysis of regional performance set out in the centre’s 2007–2008 programme of Work. It is one of three regional outlooks; the others are the African Economic Outlook and the Latin American Economic Outlook. the objective of this book is to promote the systematic monitoring and evaluation of economic performance and underlying policies in the Black Sea and central Asian regions, in order to facilitate evidence-based policy dialogue amongst the countries of these regions, as well as to facilitate dialogue and exchange of good practices between them and the members of the oecd. ISBn: 978-92-64-04729-7 © oecd 2008 AcKnoWledGementS AcKNow Acknowledgements LedGeMeNTS Black Sea and Central Asia: Work and Well-Being was prepared by a team composed of loukas Balafoutas, Federico Bonaglia (project co-ordinator), cengiz orun, richard pomfret and Shahrbanou tadjbakhsh. loukas Balafoutas and Federico Bonaglia drafted substantial sections of part one of the outlook. richard pomfret drafted part two, co-ordinating inputs from loukas Balafoutas (chapter three), Shahrbanou tadjbakhsh (chapter Five), cengiz orun (chapter Six) and Federico Bonaglia (chapter Seven). claire owen provided research assistance. reports were drafted by tamaz Asatiani and michael tokmazishvili (center for Social and economic research, tbilisi), mher Baghramyan (Armenian International policy research Group, Yerevan), Jamshed Kuddusov (resource Information Advisory centre on labour, dushanbe), roman mogilevsky (center for Social and economic research, Bishkek), veronika movchan (Institute for economic research and policy consulting, Kiev), Kosovka ognjenovic (eSpI Institute, Belgrade), Ziyodullo parpiev (center for economic research, tashkent), rasim ramazanov (research centre for development and International collaboration, Baku), Galina Selari (center for Strategic Studies and reforms, chisinau) and valentina vasile (Institute of national economy of the romanian Academy, Bucharest). Jeff dayton-Johnson, Johannes Jutting and theodora Xenogiani (oecd development centre) and Louka T. Katseli (former Director of the OECD Development Centre) also provided significant inputs. michèle Girard, librarian at the oecd development centre, was responsible for bibliographical research. A large number of government representatives and experts from academia and the private sector were involved in successive drafts. particular thanks go to participants in the Informal Advisory Group meeting that took place in paris on 14 november 2007: petr Bambas (ministry of Foreign Affairs, czech republic), Giovanni Andrea cornia (University of Florence), Gerard duchene (Université paris 1), Jean-luc dubois (Université de versailles), mihail Harbic (ministry of Foreign Affairs, romania), Hartmut lehmann (University of Bologna), pier rossi-longhi (Iom), monica matescu (ministry of labour, Family and equal opportunities, romania), rainer münz (erste Bank), Boris najman (Université paris XII), Serap ozcoskun (ministry of Foreign Affairs, turkey), Ben Slay (Undp), laura Solanko (Bank of Finland). meruert makhmutova (public policy research centre, Almaty) and tamaz Asatiani provided support in organising the two regional experts’ meetings in Almaty (28 August 2007) and tbilisi (4 September 2007). Statistical inputs and comments were also provided by the Greek permanent delegation to the oecd (panagiota tsirka), the romanian embassy in paris (mihaela popescu) and the turkish permanent delegation to the oecd (Amb. Ahmet erzoan and Beste phelivan). Wanda ollis (consultant editor) revised the manuscript and provided extensive editorial advice. colm Foy, magali Geney, vanda legrandgérard, Kathryn Bailey and Sheila lionet (oecd development centre’s publications and media Unit) turned the manuscript into the publication. ISBn: 978-92-64-04729-7 © oecd 2008 BlAcK SeA And centrAl ASIA: promotInG WorK And Well-BeInG the outlook was prepared under the overall guidance of Javier Santiso, director of the oecd development centre, and Kiichiro Fukasaku, counsellor at the development centre. Financial support from the Governments of Greece, romania and turkey and from the International centre for Black Sea Studies made this publication possible. ISBn: 978-92-64-04729-7 © oecd 2008 tABle oF contentS TABLe of 7 Table of contents coNTeNTS PrefAce 9 AcroNyMS ANd ABBreviATioNS 11 iNTroducTioN 1 PArT i recent economic development in the Black Sea and central Asia regions introduction to Part i 1 chAPTer oNe 17 Macroeconomic Performance and external Position chAPTer Two 29 integration into the Global economy PArT ii work and well-being: Policy challenges in the Global environment introduction to Part ii chAPTer Three 7 work and well-being: The observed outcomes chAPTer four 8 Labour Market outcomes and the Global Policy environment ISBn: 978-92-64-04729-7 © oecd 2008 BlAcK SeA And centrAl ASIA: promotInG WorK And Well-BeInG 8 chAPTer five 9 households’ responses and coping Mechanisms chAPTer SiX 11 Policy responses chAPTer SeveN 1 conclusions and Policy recommendations refereNceS 1 ISBn: 978-92-64-04729-7 © oecd 2008