The Slovak economy experienced in 2002 its best performance since it pulled out of the financial crisis of 1998. However, soon after recovery was under way and had begun to generate jobs, macroeconomic imbalance resurfaced, while more than 18 percent of the labor force remains unemployed. Accession to the EU provides a window of opportunity to tackle those remaining challenges. This study suggests an eleven-point agenda for immediate policy action and a longer-term overhaul of major spending programsin the areas of education, health, and social protection. The success of this strategy is predicated on the enhancement of the country's governance framework, particularly in the areas of budgeting, decentralization, and the justice system. Book includes a fold-out map of the region. A World Bank Country Study. World Bank Country Studies are published with the approval of the subject government to communicate the results of the Bank's work on the economic and related...

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