Development in Eastern Europe and the South Caucasus

Development in Eastern Europe and the South Caucasus

Armenia, Azerbaijan, Georgia, Republic of Moldova and Ukraine You do not have access to this content

OECD Development Centre

Authors:
OECD
Publication Date :
14 June 2011
Pages :
296
ISBN :
9789264113039 (PDF) ; 9789264113022 (print)
DOI :
10.1787/9789264113039-en

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The economic crisis, the second economic shock to hit the Eastern Europe and the South Caucasus region after the collapse of the Soviet Union, has been a warning and a call to action. The region has many advantages and much potential, but some of this was squandered during the boom years of the 2000s. The studies contained in this volume demonstrate that the potential is still there and that the measures that need to be taken to realise that potential are feasible and affordable. Some of them can have an almost immediate effect, such as easing access to finance for small and medium-sized enterprises and opening up new markets for the region’s goods. Others are more medium-term, such as redeveloping product lines in the steel industry or in agriculture. Some of the most critical reforms, like raising the level of education and improving health care, will require political and economic investment over the long term.

None of the recommendations in this book are, however, beyond the bounds of possibility. Governments and the private sector have an interest in implementing reforms to diversify the economy and improve the distribution of revenues. Given the enormous potential of the Eastern European and South Caucasus countries, the region has every reason to be confident about its future.

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  • Mark
  • Foreword
    The OECD is celebrating its 50th anniversary this year. Throughout its history, the OECD has assisted countries in reforming and improving their policies to promote economic growth and development. It has fostered more open societies and the rule of law and has helped build the institutions necessary for the good functioning of market-based economies. This experience has been particularly valuable to countries undergoing political and economic transitions.
  • Acknowledgements
    Development in Eastern Europe and the South Caucasus was prepared as a joint effort between the Development Centre’s Black Sea and Central Asia Initiative and the OECD Eurasia Competitiveness Programme (DAF/PSD), supported by regional correspondents located in each of the countries.
  • Acronyms and Abbreviations
  • Preface
    The transition from a centrally planned to a market economy is not an easy process and has required strong political will and wide ranging economic reforms in the countries of Eastern Europe and the South Caucasus (EESC).
  • Executive Summary and Policy Conclusions
    Development in Eastern Europe and the South Caucasus provides detailed country reviews of Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine. It explores current economic performance and the challenges of economic development and competitiveness. 
  • Armenia: Country Review
    Armenia recorded an average economic growth of 13% in 2002-07. In 2008, gross domestic product (GDP) had doubled to USD 10.3 billion compared to its level in 2002 in real terms. Investments in the construction sector, powered by migrant worker remittances and to a lesser extent by foreign direct investment (FDI), provided the basis for economic growth. 
  • Azerbaijan: Country Review
    The global economic boom of 2000-08 and the steep rises in petroleum prices resulted in very rapid growth for Azerbaijan.
  • Georgia: Country Review
    The reforms implemented between 2004-08 aimed at deregulating the economy, reducing corruption, setting up free-trade principles and creating effective administration mechanisms to ensure economic development in Georgia.
  • Republic of Moldova: Country Review
    In 2009 the economy was seriously affected by the global economic crisis and a tense political climate. Gross domestic product (GDP) declined by 6.5% year-on-year (yoy) to USD 5.4 billion, due to the collapse of domestic demand, exports, remittances and foreign direct investment (FDI). However, this fall was slightly less than the 9% forecast by the International Monetary Fund (IMF) forecast of 9%. Furthermore, industrial output was down by 25% and unemployment doubled by the end of 2009. At the beginning of 2010, improved external environment and liberalisation measures led to foreign trade and real GDP growth due to increases in industry, trade and transport activities.
  • Ukraine: Country Review
    Ukraine grew rapidly from 2000, with a yearly average of 7.4% growth until 2007. The country has strong potential from its position between Europe and Asia, large foreign direct investments (FDI), an educated labour force, fertile land and rich natural resources. Despite this, major structural problems and high resource and energy dependence led to a larger economic decline in 2009 than in many other countries. Forecasts in 2007 prior to the crisis had already predicted lower growth in 2008 (6%).
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