The low productivity of agriculture and the coronavirus crisis have sparked a discussion about promoting self-sufficiency in agri-food products in Slovakia. Many hope that it is self-sufficiency that will guarantee twice as many cattle grazing on the pastures, tons of Slovak organic meat or eggs from happy free-range hens on the supermarket shelves. However, what…
When we talk about wages in Slovakia, we refer to gross wage. From an economic point of view, however, it is a fictitious value created by accountants. It represents an arbitrarily set point between the two key values: net wage and labor costs. Today’s gross wage is, in fact, only a “semi-gross wage”. It lacks employer-paid…
The Slovak education system has a number of problems but the generally low teacher salary is not one of them. Those who claim the opposite refer to an international comparison: the share of teachers’ wages in wages of university-educated people. Even the government reform plan says that this share reaches 88% on average in the…
Who is the Oracle of Omaha? Warren Buffet, of course. Without any doubt, the name of this investor can easily be included among world celebrities such as Lionel Messi or Arnold Schwarzenegger. The former has a nose for football, the latter for breath-taking action movies – and Buffet has a good nose for investing. It is…
In 2016, Slovakia’s Institute of Economic and Social Studies (INESS) introduced the Bureaucracy Index, which draws attention to the amount of red tape a small entrepreneur has to navigate on a daily basis. The Index is based on a straightforward methodology, using the analysis of a model micro company and all of its bureaucratic obligations—such as taxes, worktime…
When it comes to real life problems, adults usually start reminiscing about their school days with a bit of bitterness. Sometimes, they blame teachers that had failed at teaching, and on other occasions they blame themselves for not paying more attention. The skills that are missing the most often are usually those related to Economics and…
When you look closely into the part of the Programme statement of the Slovak government devoted to Education, you will find many well-meant objectives and ambitious measures. The first approach encompasses optimization of the network of schools, opening the textbook market, unification and equalization of financing, de-bureaucratization, or simplification of rules guiding establishment of primary…
Slovak government is celebrating. A lawsuit between the state and private health insurers that has been with us for two decades now, is finally over. What does it mean for Slovak citizens? Slovaks can choose out of three health insurers. The dominant one is the state health insurer VsZP. Once it held 2/3 of the…
The new Slovak government brings new hopes for an education reform. Previous governments were unable to manage the ministry. They typically came up with announcements of general changes, only to get suffocated by dealing with pointless details in the end. The current state of the education system requires us to fight two types of fire at…
Let us close our eyes and put citizens under house arrest for a few weeks. Then we open the eyes again and the virus is gone? This is not how it works. Yes, I have seen Chinese figures and I do not believe them either – gigantic continental China is supposed to have a similar number…
The contest for who is more generous is on. Slovak large-scale employers want the highest possible wage compensation, looking up to the German or Austrian Kurzarbeit system, which covers up to 85% of wage costs. Journalists and some economists argue that we should borrow as much as we can. They claim that it is to save the…
The ongoing epidemic requires an adequate response. In terms of the upcoming weeks, Slovakia should proceed in an organized and responsible manner. Such an action plan should entail the following aspects: Prepare a Detailed Plan on Closing and Opening of the Economy Decisions on a „lockdown“, regional restrictions of economic activity as well as opening…
