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What happens if you don’t pay your bill? Lessons from Central and Eastern Europe

Georgia Harley's picture


We all have regular bills to pay for the ubiquitous services we consume – whether they be for utilities (water, heating, electricity etc.), credit cards, memberships, or car payments.  But, not everyone pays.  

So why don’t people pay?  Why are some countries better at this than others?  And what can be done to improve systems for debt collection?

Come for the job, stay for the city: The attraction of magnet cities in Romania

Marcel Ionescu-Heroiu's picture
Photo by Shutterstock.com

When looking at the findings from a recent report, you will be struck to learn that more than 15% of people in Romania would consider moving to Cluj-Napoca. Today, however, this Functional Urban Area (FUA)* represents just 2.3% of the total population in the country. Cluj-Napoca is not alone in serving as an attractive urban destination – many people also expressed interest in moving to Bucharest (14.4%), Timișoara (11.9%), Brașov (11.5%), Sibiu (5.16%), or Iași (4.3%).

So, what, then, are the local administrations in these dynamic FUAs doing to attract these people?
 
The unpleasant answer is: not much, unfortunately.

Adversity gets in the brain

Magdalena Bendini's picture

“Individuality is the product of both biological inheritance and personal experience,” said Professor Charles A. Nelson during a recent presentation at the World Bank. Professor Nelson has been studying neurobiological development and the effect of adversity on the brain for some time now (e.g., here and here). So we asked him to open the black box of brain development for us and help us understand what it all means to those of us working on ending extreme poverty and boosting shared prosperity. Below are some highlights from his talk.

How can we ensure that fewer people die on Romania’s roads?

Radoslaw Czapski's picture


Ask any resident of Romania whether their roads are safe and they will answer a resounding “no”. In 2016, fatalities on Romania's road reached 1,913 - more than double the number of fatalities compared with the EU-28 average of 925. Romania’s average fatality rate over the past six years has consistently been twice higher than the EU-28 average, registering around 91 fatalities per million people, compared to 51 for the rest of the EU.
 
Alarmingly, Romania’s fatality rate keeps increasing - reaching 95 per million people in 2016. In addition to the human tragedy this situation represents a huge economic cost. According to the General Transport Master Plan, costs of fatal road crashes in Romania are alarmingly high - estimated to be at least 1.2 billion euro (5.4 billion RON) per year.

Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

A mixed report: How Europe and Central Asian Countries performed in PISA

Cristian Aedo's picture
 Aigul Eshtaeva / World Bank
While more ECA program countries are participating in the PISA assessment of 15-year-old students' skills, education poverty in these countries has only slightly declined since 2000. (Photo: Aigul Eshtaeva / World Bank)

Recently, the OECD released the results for PISA 2015, an international assessment that measures the skills of 15-year-old students in applying their knowledge of science, reading, and mathematics to real-life problems. There is a sense of urgency to ensure that students have solid skills amidst modest economic growth and long-term demographic decline in Europe and Central Asia (ECA).

Economy mega shifts are here to stay – Tap your talents to thrive

Salah-Eddine Kandri's picture
Editor’s Note: This guest blog is by Salah-Eddine Kandri, the Global Sector Lead for education at the International Finance Corporation (IFC).
 
 Li Wenyong / World Bank
According to a report from McKinsey, about 60 percent of occupations have at least 30 percent of their activities automatable. This means new sets of skills need to be acquired. (Photo: Li Wenyong / World Bank)


When I visited Peru for the first time last month for a business development trip, I met with the heads of some leading private education institutions. At the end of my visit, I decided to book a cultural tour of Lima. During the tour, I asked our guide Marcos where he learned English as I found him very articulate, knowledgeable and with a good sense of humor. To my pleasant surprise and astonishment, he told me that he learned it by himself, mainly online. He then started practicing with visiting tourists until he became more comfortable leading tours himself.      

Why we need to talk about Roma inclusion

Ede Ijjasz-Vasquez's picture

The Roma are Europe’s largest ethnic minority group, and arguably the most discriminated-against one. Despite efforts to promote Roma inclusion over the last decades—including from the European Union institutions, governments, development organizations, and civil society organizations—a large share of the Roma remain poor, and have inadequate access to basic services.

The economic benefits of LGBTI inclusion

Georgia Harley's picture
Civil Rights Defenders/Photo: Vesna Lalic
Civil Rights Defenders/Photo: Vesna Lalic
Discrimination against lesbian, gay, bisexual, transgender and intersex (LGBTI) people is an all too familiar story. Members of this community are frequent targets of violence and other human rights abuses, and often face prejudice and hardship at work, in their communities, and at home.

Action is needed to address these problems and ensure that everyone – regardless of race, gender, age, sexual orientation, or gender identity - has an equal chance to live a healthy and prosperous life
This is not only the right thing to do, it also makes economic sense: a growing body of evidence indicates that discrimination against LGBTI people has a negative economic impact on society.

Turning Romania’s secondary cities into engines of growth

Marius Cristea's picture


On March 10, a World Bank team of urban specialists will visit Alexandru Ioan Cuza University in Iasi to engage academics, students, local authorities and stakeholders in discussing the role of secondary cities in supporting sustainable growth and improved economic opportunities in Romania.
 
Strengthening Romania’s secondary cities is vital to supporting the country’s efforts in converging faster with the EU and generating sustainable, long-term growth. In turn, rapid growth comes with a set of challenges that cannot be tackled by local authorities alone.

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