World Bank economist on reforms: incentives not to emigrate to Lithuania are down

Business

DELFI recalls that the LFMI expressed its opposition to tax reforms and the pension system before their adoption in the Sejm.

The letter circulated to parliamentarians of the Institute indicated that the progressive rate of GPM would hinder the growth of the salaries of the best specialists and send a negative message to investors. and the result of the cancellation of the transfer of contributions to Sodra to second-pillar pension funds will be preserved and unreformed

Reform supporters, for their part, argued that the progressive rate of GTC would be introduced in exchange of the ceiling of Sodra, Sodra ", the abolition of the division of private and state accumulation will be canceled.

Three trends

The Bulgarian writer of S. Djankov also presented three important trends in his labor market that are relevant to him, not only today but also in the future.

"First, this current activity is based on much less physical badets than in the past. Previously, banks needed expensive buildings in inner cities, so their customers realized that they were reliable. Today, it is no longer necessary, electronic banking works better and much faster.

This may be useful for countries like Lithuania or Bulgaria with good human capital, but their physical capital is lower than in other countries. "The second trend noted by the economist is the much larger dynamics of the business."

"Even today, even a small business can become a global phenomenon in a few years.In the past, for example, Ikea needed about 60 years before becoming global in terms of Swedish phenomenon They needed to set up offices in each country, set up logistics centers, sales departments, etc.

In the new economy, entering or leaving the market is much faster. understand Lithuania, where bankruptcy procedures take a long time, about 2.5 years. "

Finally, according to S. Djankov, today's economy is flexible not only for not only companies, but also employees. "New technologies allow people to work from home or anywhere in the Internet, and decentralized work is becoming more and more possible. mond e for 20-30 years

Competition for workers, especially in Europe, is becoming increasingly fragile. This is the most important question that should worry the government – how to keep its own employees at home and attract them from abroad, "said the representative of the World Bank