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Economic Slowdown reaches Central and Eastern Europe: Problematic Poland

Forecast for central and Eastern Europe for 2001 and 2002. Discussion of the high risk potential for financial crises in Poland as measured by the IWH early warning system and an analysis of the underlying reasons for this development.

26. September 2001

Authors Axel Brüggemann Thomas Linne

Also in this issue

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Current trends - In East Germany the number of privat housholds increases in spite of declining population

Ruth Grunert

in: Wirtschaft im Wandel, No. 12, 2001

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Measures to improve the employment prospect of welfare recipients – the view of the participients

Cornelia Lang

in: Wirtschaft im Wandel, No. 12, 2001

Abstract

The results of measures to improve the employment prospects of welfare recipients are rather discouraging with respect to their core intention; many participants transit after the measure again into unemployment. Still (nevertheless) the majority of former participants surveyed by the IWH report a subjective evaluation, because the measure helped them to readjust to the daily routine of work. For many participants the ending of isolation and their regain of (improvement) of their selfesteem and self-confidence was important.

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Charity engagement of german savings banks: extent and regional effects

Martin Wengler

in: Wirtschaft im Wandel, No. 12, 2001

Abstract

The german savings banks spent in in the year 2000 about 542 Mio. DM for charity projects. These funds influence the soft location factors in a positiv way and support the decrease of social disparities in economic peripheral regions.

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Innovative and international – with local personnel: Results of a survey of New Economy enterprises in Saxony and Thuringia

Cornelia Lang Ralf Müller

in: Wirtschaft im Wandel, No. 12, 2001

Abstract

BT and IT firms in Saxony and Thuringia were surveyed about their recruiting activities, the scope of their product markets and their R&D activities. The major findings are: The majority of firms engage in product and process development, their product markets are not predominantly local markets, and that they recruit their labor force in the local labor market. The latter fact is explained by the existence of the modern infrastructure in higher learning and research in the new Länder (which formerly constituted the GDR). Consequently the firms are optimistic to be also able to attract highly qualified personnel in the future.The recently enacted law, which grants a number of work permits for highly qualified jobs (green card) is therefore of no great significance to these firms.

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IWH Construction Industry Survey August 2001: East German Construction

Brigitte Loose

in: Wirtschaft im Wandel, No. 12, 2001

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Germany: Cyclical Improvement not Until the End of the Year

Arbeitskreis Konjunktur

in: Wirtschaft im Wandel, No. 12, 2001

Abstract

During the second quarter of 2001 German overall production stagnated. Weak global development muddied the economic prospects of firms and prevented them from rising their output and their investment activities. In 2001 gross national product will only increase by 1%; the number of unemployed will be higher than expected. Nevertheless, we advise against an increase in public expenditure that aims at stimulating the economy. Anyhow, growing public deficits, caused by cyclical movements, should be accepted. In order to increase employment labour market reforms become more urgent. In East Germany, currently even a decline in gross national product cannot be excluded. After the first period of restructuring, which has been accompanied by structural problems, cyclical movements become more important. In addition, economic stagnation burdens labour markets. Nonetheless trying to stimulate the East German economy by government spending programmes does not seem to be a viable strategy. From the cyclical point of view they are not very efficient and concerning structural problems they are no solution.

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