1. Human Development Economics, Europe and Central Asia Region The World Bank H DE Including Inclusion in Europe and Central Asias Social Policy: Closing Themes Arup Banerji Budapest September 26 2007

2. Human Development Economics, Europe and Central Asia Region The World Bank 2 H DE 2 Enhancing Job Opportunities in ECA 2 Six Themes to Take Away 1.Social inclusion is especially important for Eastern Europe and Central Asia 2.Many of the approaches work best when applied across sectors/ministries 3.In parallel, new approaches are not panaceas, and are most effective when used as part of broad social policy (mainstreaming) 4.Many of the approaches to social inclusion has to be inter-generational, and education is key 5.Some policy initiatives are costly, but the money is there in most countries 6.Good quality evaluations are still lacking

3. Human Development Economics, Europe and Central Asia Region The World Bank 3 H DE 3 Enhancing Job Opportunities in ECA 3 1. The particular importance of social inclusion for ECA The challenge of convergence is still large, even at todays rapid growth rates Increasing both labor force participation and productivity are the only solutions Including those in the current populations who are excluded, into jobs, and good (higher productivity) jobs is a fairer and more sustainable solution

4. Human Development Economics, Europe and Central Asia Region The World Bank 4 H DE 4 Enhancing Job Opportunities in ECA 4 2. Cross-sectoral approaches The quality of delivered services (e.g., education quality) is central for attaining CCT goals Increasing labor demand is a prerequisite for the most successful activation policies Community-based approaches are inherently cross-ministerial Child care needs to involve education and health Mobility requires action on housing markets

5. Human Development Economics, Europe and Central Asia Region The World Bank 5 H DE 5 Enhancing Job Opportunities in ECA 5 3. Mainstreaming approaches There are many successful experiences, but they need to be embedded within a broader social policy – Employment – De-institutionalization – CCTs (and their relationship to existing transfers)

6. Human Development Economics, Europe and Central Asia Region The World Bank 6 H DE 6 Enhancing Job Opportunities in ECA 6 4. Inter-generational focus Addressing exclusion in a generation is difficult, but for the next generation it is affordable (long-term unemployed hardest to reach, to move). Better educating kids (CCTs, REF approaches for Roma, skills-building for most marginalized groups, better social care for children) a necessary approach

7. Human Development Economics, Europe and Central Asia Region The World Bank 7 H DE 7 Enhancing Job Opportunities in ECA 7 5. Available resources For many ECA countries, the marginal resources to make costly program changes exist: – EU funds (ESF/structural funds for member states, IPA for candidates, or neighborhood funds) – Oil/mineral revenue – Savings from increasing efficiency (e.g., from better targeting transfers)

8. Human Development Economics, Europe and Central Asia Region The World Bank 8 H DE 8 Enhancing Job Opportunities in ECA 8 6. Evaluation is essential Social inclusion, by its very complexity, needs experimental/pilot approaches Scientific, well-designed evaluations are critical: – For understanding results/successes – For not wasting time and resources on falures – For building political support