a diagram in the form of a radar chart used to illustrate the progress in banking reforms basing on three variables: ▶ banking reforms index ▶ enterprises restructuring index and ▶ asset share of private banks.
Source: own work based on EBRD and World Bank data.
BUSINESS FREEdOM INdEx
a component of the ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It evaluates the ef- ficiency of business regulations introduced by the government.
CONTROL OF CORRUpTION
an index developed by the World Bank to describe ▶ governance. It assesses the degree to which public authorities use their power for the achievement of private benefits (this includes different forms of corruption), as well as the extent to which the state is “seized” by elites and groups of interest.
dOMESTIC CREdIT TO pRIvATE SECTOR IN pER CENT OF Gdp
an aggregate measure of banking development calculated as a ratio of domestic credit for the private sector to the gross domestic product, which enables the assessment of the level of involvement of financial intermediation in the financing of the economy at a given level of development.
Source: World Development Indicators (http://data.worldbank.org/indicator/FS.AST.PRVT.GD.ZS/countries; DOA: 02.01.2014).
EMpLOYMENT pROTECTION LEGISLATION, EpL
an index developed by the OECD to measure the degree of restrictiveness of the labour law with respect to es- tablishing and terminating labour relations. It is compiled as the average of three component indices calculated separately for regular contracts, temporary contracts and collective dismissals; it takes the values from 0 to 6, where 6 means the maximum level of legal protection of employees.
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ENTERpRISES RESTRUCTURINGa synthetic indicator of progress in the reform of enterprises from a centrally planned economy to industrialized market economy published by the EBRD for years 1989-2010. The values of the index range from 1 to 4.33. Source: EBRD Transition indicators (http://www.ebrd.com/pages/research/economics/data/macro.shtml#ti; DOA: 02.04.2012).
ExpENdITURES ON ALMp AS pERCENTAGE OF Gdp
The government spending earmarked for the Active Labour Market Policy (ALMP), aimed at helping the unemployed return to work. The active policy is complementary to the passive one (PLMP – Passive Labour Market Policy), aimed at alleviating the negative effects of the unemployment, mostly through a system of unemployment benefits. Source: Eurostat, 2014, LMP expenditure by type of action - summary tables (http://epp.eurostat.ec.europa.eu; variable: lmp_expsumm; DOA 25.01.2014); Lehmann H., Muravyev A., 2012, Labour Market Institutions and Labour
Market Performance: What Can We Learn from Transition Countries?, “Economics of Transition”, vol. 20, iss. 2. FINANCIAL FREEdOM
a component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It evaluates the efficiency of the banking system and the financial sector’s independence from the government’s control and interference.
FISCAL FREEdOM
component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It measures the tax bur- den imposed by the central government and local governments; it assesses the level of direct and indirect taxes and the amount of tax revenue in relation to the level of the GDP.
FREEdOM FROM CORRUpTION
a component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It measures the size of corruption; its value is obtained mostly from the Corruption Perceptions Index published by Transparency Inter- national.
FREEdOM hOUSE FREEdOM RATING, Fh
FH is calculated as the average of the indices of Civil Liberties and Political Rights. The Civil Liberties index includes the evaluation of 4 areas: the freedom of speech and religion, the freedom of association, the rule of law, per- sonal freedom and individual rights. The Political Rights index includes 3 areas, i.e.: the election process, political pluralism and the operation of the government. The Freedom House Freedom Rating takes values from 1 to 7; the lower the value, the greater the freedom. Depending on the value of the index, a country may be classified as: free (from 1.0 to 2.5), partly free (from 3.0 do 5.0) or not free (5.5 to 7.0). The index is published by the Freedom House. Source: http://www.freedomhouse.org/report-types/freedom-world#.UxX6f4WSze4, [DOA: 1.03.2014]
GOvERNANCE
according to the definition proposed by Kaufmann et al., it is: traditions and institutions by which authority is exercised in a country; they include: “the process by which governments are selected, monitored and replaced; the
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and Absence of Violence, ▶ Government Effectiveness, ▶ Regulatory Quality, ▶ Rule of Law and Control of Cor- ruption. The maximum value for any of these indices is 2.5 and the minimum -2.5. The higher the value the better governance in a given area. The indices are published by the World Bank.Source: Kaufmann D., Kraay A., Zoido-Lobatón P., 1999, Governance Matters, The World Bank, World Bank Institute Policy Research Working Paper no. 2196; the database of World Bank - Worldwide Government Indicators “Governance Matters”, http://info.worldbank.org/governance/wgi/index.aspx#home, [DOA: 1.03.2014]
GOvERNMENT EFFECTIvENESS
an index describing ▶ governance developed by the World Bank. It evaluates the quality of public and civil service, the extent to which they are independent from political pressure, as well as the quality of the developed policies and its implementation, and the credibility of the ruling in the implementation of these policies.
GOvERNMENT SpENdING
a component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It assesses the level of all government spending (both equivalent and transfers).
Index of economIc freedom (IEF) OF ThE hERITAGE FOUNdATION
a synthetic indicator assessing the scope of economic freedom in 10 areas constituted by the following indi- ces: ▶ property rights, ▶ freedom from corruption, ▶ fiscal freedom, ▶ government spending, ▶ business free- dom, ▶ labour freedom, ▶ monetary freedom, ▶ trade freedom, ▶ investment freedom, ▶ financial freedom. The Index of Economic Freedom and its particular components take values from 0 to 100, where 100 means the maximum scope of freedom. Depending on the value of the index, countries are categorized as: repressed (0- 49.9), mostly unfree (50-59.9), moderately free (60-69.9), mostly free (70-79.9) and free (80-100). The index is published by the Heritage Foundation. In this report, the values of the Index of Economic Freedom are given for the year they concern and not the year of their publication.
Source of the data: http://www.heritage.org/index/explore?view=by-region-country-year [DOA: 1.03.2014]
INdEx OF LABOUR MARKET FLExIBILITY
one of the components of the Global Competitiveness Index, Pillar 7A - Flexibility published by the World Economic Forum. The values of this index are obtained from surveys conducted in particular countries among managers of companies. Thus, it is a subjective measurement of labour market flexibility. It takes values from 1 to 7, where 7 means the maximum level of flexibility. This index has been published since 2006 and its values are calculated as a weighted average of observations from two consecutive years.
Source: World Economic Forum (http://www.weforum.org/issues/competitiveness-0/gci2012-data-platform/; DOA: 12.12.2013).
INvESTMENT FREEdOM
a component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It assesses the freedom of locating capital in a given country by both domestic and foreign owners.
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MONETARY FREEdOMa component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It assesses the stability of the level of inflation and price control.
NON-wAGE LABOUR COSTS/ TAx wEdGE
it is the amount of taxes and social security contributions expressed as the percentage of the total labour costs. This indicator was calculated for a single person earning 67% of the average wage.
Źródła: Eurostat, 2014, Tax rate on low wage earners: Tax wedge on labour costs (http://epp.eurostat.ec.europa.eu; zmienna: earn_nt_taxwedge; DOA: 25/01/2014); Lehmann H., Muravyev A., 2012, Labour Market Institutions and
Labour Market Performance: What Can We Learn from Transition Countries?, “Economics of Transition”, vol. 20, iss. 2. pOLITICAL STABILITY ANd ABSENCE OF vIOLENCE/TERRORISM
an index describing ▶ governance, developed by the World Bank. It assesses the likelihood of destabilization of power and that the government will be overthrown in an unconstitutional way or by violence, including by politi- cally motivated violence and terrorism.
pROpERTY RIGhTS
a component of ▶ the Index of Economic Freedom, developed by the Heritage Foundation. It assesses the degree to which the state protects the property rights of individuals and the execution of economic contracts.