About HD Economics

Many countries in Europe and Central Asia (ECA) are saddled with legacy systems left behind after the collapse of the Former Soviet Union (FSU). The social sectors of education, health and social protection were perhaps the worst affected by the economic decline that followed the collapse of the FSU, as public spending in these sectors declined and the countries were left with deteriorating health centers and schools. The former large and centrally planned administrative systems of FSU countries therefore came under immense pressure to reform during the decade of transition.

At the present, countries are increasingly putting into place realistic and quantified development goals. Such goals are meant to help governments focus their resources, and to make them accountable for their actions. Sound economic analysis is a pre-requisite for analytical purposes (to understand the factors determining the current situation), for policy-making purposes (to design interventions best adapted to the issues), and for monitoring and evaluation purposes (to assess whether current policies are effective, and whether the situation is changing).

Thereafter, a robust system of monitoring and evaluation needs to be set in place that can define key indicators, track them over time, and quantify changes that have taken place. Many countries already have some monitoring systems in place, so the task is to assess their adequacy and strengthen them as necessary. In places where there is inadequate capacity to undertake economic and evaluative work, there is a need to build capacity, particularly to strengthen the processes that provide policymakers and others with feedback on the impact of policies and programs.

The Human Development Economics Analysis and Evaluation sector in ECA is focused on delivering incisive analytical and advisory services in the form of country specific economic sector work – such as Poverty Assessments, Social Assessments and Public Expenditure Reviews – and regionally relevant analytical studies – such as social exclusion (focusing on the Roma populations of Europe), operationalizing the Millennium Development Goals, and the Demographic Transition in Eastern Europe, amongst others.