Publishing Institution: The Organisation for Economic Co-operation and Development / Topic: Economics

101. Export Credits and the Environment

Publication Date:: 12-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Official export credit agencies (ECAs) support exports, much of which support goes to emerging economies, by providing loan guarantees, export credit insurance and direct loans. In 2002, the amount of business covered by such support was approximately USD 50 billion. Typically, officially supported export credits are provided to enable recipient countries to fund major capital goods and projects exported by the home country of the ECA, such as roads, mining, railways or airports.
Topic:: Economics, Environment, Industrial Policy, and International Trade and Finance

102. Economic Survey of the Czech Republic, 2004

Publication Date:: 11-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Following accession to the European Union the big issue for the Czech Republic is to strengthen growth prospects. Growth potential at present is somewhat above 3 per cent, implying a moderate pace of catch-up to living standards in the EU and elsewhere. There is room for greater ambition in growth performance, and it is welcome to see this reflected in the programme of the new Czech government. This Survey underscores four main challenges. Fiscal consolidation is the dominant challenge for macroeconomic policy, and is not only necessary to cope with ageing and to bring down the tax burden but is also needed to fulfil euro-area entry conditions. A welcome programme of fiscal reform has begun, including proposals for a system of multi-year aggregate spending ceilings and significant expenditure cuts. However, to date, mainly revenue-raising measures have been implemented while the full impact of expenditure measures is yet to be realised. The attempt to secure broad political consensus on pension reform is commendable, but it must be underscored that whatever reform is finally implemented, it will have to bring considerable fiscal savings. Health-care reform also has to deliver savings, but concrete proposals have yet to be made. To facilitate assessment of the true fiscal position, extra-budgetary funds need to be more fully integrated in mainstream government budgeting procedures. Also, with the further decentralisation of public services, the need for good budgeting practices and accountability in regional and municipal governments is all the more important. The Central Bank and the Ministry of Finance have formulated a transparent strategy for entering the euro area, that foresees minimising the time spent in ERM II. Annual reports will assess the economic conditions in relation to the Maastricht Criteria and a request to enter ERM II will only being made if the probability of a positive first assessment by the EU authorities is high. The choice of a 3 per cent inflation target for the run-up to euro entry is justifiable on medium-term grounds. However there may be some difficulty communicating the consistency of this target with the Maastricht criterion for price stability. The Czech authorities should therefore pay close attention to how the Maastricht criteria are interpreted and applied by the European Commission and the ECB and adjust their communication strategy accordingly. Most of the catch-up in living standards will have to come from boosting productivity growth. This means swifter re-allocation of resources across firms as well as stronger in-firm productivity growth. While the Czech Republic is a strong competitor for attracting foreign direct investment, policy towards poorly performing firms and business start-ups has problems, slowing down the exit and entry of firms. Bankruptcy procedures are cumbersome, often long and usually end up in liquidation, with asset stripping not uncommon. Reforms have long-since been planned, and it is welcome that new legislation looks finally set to go ahead. The legislation aims at strengthening the role of creditors, speeding up proceedings and allowing composition to play a bigger role. Likewise, efforts to streamline business registration are welcome and should be implemented as soon as possible. The general business climate is also damaged by issues in network industry competition, as some services, notably internet, are expensive in international comparison. Mobility between jobs and regions is weak. Administrative extensions of collective wage agreements, strict employment protection legislation (EPL) on individual dismissals, rent control, severe poverty traps (particularly for families) and a high tax wedge have contributed to considerable long-term unemployment. The Roma population is hit especially hard in this respect. Migration is to some extent mitigating the labour-market rigidities with Slovaks filling skilled vacancies and other eastern Europeans (mainly Ukrainians) taking up unskilled jobs that are unattractive for locals. Tackling the unemployment problem requires measures across a wide front, but most notably social benefit reform is needed along with reduction in the tax wedge as well as easing of EPL. The widespread social and economic exclusion of the Roma needs more attention, particularly in the education system. A more open immigration policy is needed to address immediate issues such as the inconsistency between granting work permits as well as for better alignment of immigrants' skills with those needed on the Czech labour market.
Topic:: Economics and International Trade and Finance
Political Geography:: Europe, Ukraine, and Czech Republic

103. Competition Law and Policy in the Russian Federation

Publication Date:: 11-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: When the Russian Federation began its transition toward a market based economy, promoting competition and regulating anticompetitive behavior - issues never previously needing to be addressed - arose as new and unfamiliar subjects for state policymaking and law enforcement activities. In order to address these issues, the Russian Federation created a competition authority and basic law in 1991, quite early in its transition period. Support for competition was expressed in the 1993 Constitution, as well as in other fundamental legislation. As part of a larger study of regulatory reform, the OECD in 2003 undertook a detailed assessment of Russia fs decade of experience with competition law and policy. The Report concludes that despite early legislation on the issue and strong expressions of support for competition in the laws, the creation and protection of competition on domestic markets has not been a policy priority. Emphasis on rapid privatization limited the scope of pre-privatization restructuring to promote competition and the competition authority has been expected to serve as a general regulator of behavior in markets, assigned to fill legislative gaps and to enforce against a variety of undesirable practices in markets. Overly broad responsibilities and a lack of credible sanctions have significantly limited the impact of the competition laws.
Topic:: International Relations, Economics, and Government
Political Geography:: Russia

104. Public Sector Modernisation: Governing for Performance

Publication Date:: 11-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Performance – improving it and measuring it – has pre-occupied governments for at least half a century. Over the past two decades, public sector performance has taken on special urgency as OECD countries have faced recessions, mounting demands for more and better public services, and, in some countries, citizens increasingly unwilling to pay higher taxes. Accompanying these pressures have been demands for more public accountability.
Topic:: International Relations, Development, Economics, and Government

105. OECD Territorial Reviews: Mexico City

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Mexico City's spectacular growth into one of the world's largest metropolitan regions is giving way to new development dynamics. The Metropolitan Area of Mexico City (MAMC), with a population of approximately 18.4 million people, is undergoing two main transitions: first, from high population growth to relative demographic stability and spatial redistribution, and second, from a declining manufacturing economy focused on national markets to one based on services competing internationally.
Topic:: Economics, Government, and International Trade and Finance
Political Geography:: North America and Mexico

106. Economic Survey of Canada, 2004

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Economic performance has been solid, and macroeconomic policies are appropriate. The economy is expected to expand by close to 3.5 per cent in 2005, and the output gap will soon be closed. Monetary stimulus should gradually be removed and the fiscal policy stance needs to remain neutral. The Canadian dollar appreciated sharply in 2003 and is now probably not far from its fundamental value. Canadian firms will need to continue to adjust by making efforts to improve productivity to maintain competitiveness. Policy makers should remain focussed on policies that enhance productivity growth across all sectors. With a sound macroeconomic framework and structural policies that are mostly conducive to a well functioning economy, the country is well placed to meet the challenges of an ageing population, namely, maintaining rises in living standards through strong rates of productivity growth and policies to attenuate the expected fall in hours worked on average across the whole population, and ensuring that public finances are sustainable, especially given pressures on health care outlays.
Topic:: Economics, International Trade and Finance, and Political Economy
Political Geography:: Canada and North America

107. Economic Survey of Turkey, 2004

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Turkey is at a crossroads. After hitting the most severe crisis of its recent history in 2000-2001, the economy bounced back and is now among the fastest growing economies in the OECD. A new institutional framework for monetary and fiscal policies as well as for product, labour and financial markets, infrastructure industries, and agricultural support opened a window of opportunity to escape from the three traps of low confidence, weak governance and high informality which underpinned the boom and bust cycle of the past and to embark durably on a higher growth path. Success will depend on fully implementing and completing the new policy framework.
Topic:: Economics, International Trade and Finance, and Political Economy
Political Geography:: Turkey and Eastern Europe

108. A New World Map in Textiles and Clothing

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The textile and clothing industries provide employment for tens of million of people, primarily in developing countries, and accounted for USD 350 billion in merchandise exports in 2002, or 5.6% of the world total. The current rules governing world trade in textiles and clothing will change drastically at the end of 2004, when countries will no longer be able to protect their own industries by means of quantitative restrictions on imports of textile and clothing products. What will this mean for cotton growers in Burkina Faso and Turkey, fashion retailers in France and the United States, or shirt factories in Bangladesh, the Dominican Republic or China?
Topic:: Civil Society, Development, Economics, and Industrial Policy
Political Geography:: Bangladesh, United States, China, Turkey, and France

109. Clocking in and Clocking out: Recent Trends in Working Hours

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The amount of time people spend at work is a key element in several economic and social challenges facing industrial countries, notably those associated with population ageing. OECD governments will need to bring more people into the labour force and keep them there in coming years as the ratio of older to younger people rises if they wish to maintain living standards and finance social protection. One way of doing that is to make working time more flexible. For example, part-time jobs can make it easier for mothers with young children to combine working and parenting. More flexible working hours can also help firms adjust to changing workloads.
Topic:: Civil Society, Development, Economics, and Industrial Policy

110. Farm Household Income: Towards Better Informed Policies

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Improving the income situation of farm households remains a prominent objective of agricultural policies in many OECD countries. Concerns are often expressed in response to year over year declines in national farm income levels or to fluctuating world commodity prices. Increasingly, however, attention is moving away from such partial indicators of household well-being towards a more comprehensive concept of farm household income which encompasses all income sources available to family members as well as their accumulated wealth.
Topic:: Agriculture, Civil Society, Development, and Economics

111. Economic Survey of Finland, 2004

Publication Date:: 10-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The transformation of the Finnish economy over the last decade represents one of the few examples of the "new economy" taking hold in Europe. Output and productivity growth over the second half of the 1990s was among the highest in the OECD, and the recovery from the global downturn has been much stronger than for the euro area as a whole. However, imminent population ageing threatens to expose weaknesses in the labour market. Demographic developments, which over past decades have been broadly neutral, could reduce the growth rate of GDP per capita by 1/4 of a percentage point per annum over the remainder of this decade and by almost 1 percentage point over the next decade. This, combined with the likelihood of smaller productivity gains in the information and communication technology (ICT) sector, a continuation of falling ICT prices as well as the mediocre performance in the sheltered sectors, threatens the future growth of living standards. Within a decade, and in the absence of further policy changes, these developments together could imply that Finland not only loses its top performer status but could face a protracted period of slow growth, as illustrated in the following scenario.
Topic:: Development, Economics, and International Trade and Finance
Political Geography:: Europe

112. Private Health Insurance in OECD Countries

Publication Date:: 09-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Health spending in OECD countries averages more than 8% of gross domestic product (GDP) and the share is rising. Overall, some threequarters of that spending is publicly financed. Private health insurance accounts, on average, for only a quarter of private-sector financing, although there is great cross-country variation. In a third of the OECD member countries at least 30% of the population has private health insurance, while market size is negligible in nearly as many countries. Private health insurance also plays a variety of roles, ranging from primary coverage for particular population groups to a supporting role for public systems.
Topic:: Civil Society, Development, Economics, and Human Welfare

113. Employment Protection: Costs and Benefits of Greater Job Security

Publication Date:: 09-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Deregulating labour markets – for example making it easier for firms to hire and fire employees – is at the heart of the employment debate in many OECD countries. Laws on firing or layoffs and other employment protection regulations are thought by many to be a key factor in generating labour market "rigidity", as well as one reason for the large differences in labour market performance among OECD countries, notably between the United States and some of the larger European countries.
Topic:: Civil Society, Development, Economics, and Government
Political Geography:: Europe

114. Economic Survey of Portugal, 2004

Publication Date:: 09-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Convergence of the Portuguese economy toward the more advanced OECD economies seems to have halted in recent years, leaving a significant gap in per capita incomes. The proximate cause is low labour productivity, as employment rates across the board are substantially higher than the EU average. Nor is there a shortage of capital goods in aggregate. But capital equipment in the business sector is not always efficiently used or allocated, and new technologies are not readily adopted. Furthermore, the Portuguese labour force – even its younger members – have had less formal education than workers in other EU countries, including among the new entrants from Central and Eastern Europe, and workers in Portugal also have less access to training than in many other countries. Traditional Portuguese low value-added highly labourintensive products now face increasing competition from developing countries and from the new EU entrants.
Topic:: Development, Economics, and Government
Political Geography:: Europe and Eastern Europe

115. Which Policies Can Reduce the Cost of Capital in Southern Africa?

Author:: Martin Grandes and Nicolas Pinaud
Publication Date:: 09-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Lowering interest rates and, thus, the cost of borrowing in the rand zone (Lesotho, Namibia, Swaziland and South Africa) is a priority to promote investment and economic growth. Local-currency interest rates in these countries are driven by those on rand-denominated transactions. Reducing the level and volatility of the rand premium would help reduce financing costs in the region. Policies should promote: enhancing financial-market liquidity; easier access to South African financial markets for African entities; domestic saving capacity; and the improvement of international perception of the rand. Johannesburg could become a financial "hub" for the region, channelling cheap resources to its neighbours.
Topic:: Economics, Government, and International Trade and Finance
Political Geography:: Africa, South Africa, Swaziland, and Namibia

116. Public Sector Modernisation: Changing Organisational Structures

Publication Date:: 09-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Governments have always changed their structures to respond to new priorities in a changing society, or to improve the management of existing ones. They have also taken advantage of new capacities and better governance in society in general to put some of the functions previously performed in the core public service at arm's length, or even to privatise or contract them out.
Topic:: International Relations, Civil Society, Economics, and Government

117. The OECD Principles of Corporate Governance

Publication Date:: 08-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The integrity of businesses and markets is central to the vitality and stability of our economies. So good corporate governance – the rules and practices that govern the relationship between the managers and shareholders of corporations, as well as stakeholders like employees and creditors – contributes to growth and financial stability by underpinning market confidence, financial market integrity and economic efficiency. Recent corporate scandals have focussed the minds of governments, regulators, companies, investors and the general public on weaknesses in corporate governance systems and the need to address this issue.
Topic:: Development, Economics, Government, and Political Economy

118. Economic Survey of Germany, 2004

Publication Date:: 08-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: With the effects of adverse external shocks diminishing, a strong and competitive export industry is helping the German economy out of a three-year period of near stagnation. Domestic demand has been declining over the last couple of years, as poor labour market performance has weighed on consumer sentiment and business confidence. The labour market still suffers from weak economic growth and distorted incentives, with both contributing to problems in taking up work and providing employment. Productivity growth is not high enough to compensate for the adverse effect of low labour utilization on economic growth. Fiscal targets have been missed on account of both cyclical and structural factors. The government has launched a major reform initiative to reinvigorate economic growth. These reforms are welcome, have to be continued and need to be broadened further to reduce government debt, remove fiscal distortions, and improve incentives to supply and demand labour. Furthermore, there remains considerable scope to foster the creation of new enterprises and widen product market competition, thereby also maintaining the strong innovative capacity of the economy. The major challenges are to link fiscal consolidation to public sector reform and to increase the capacity of the economy to create employment and increase productivity growth. To create confidence and to restore Germany's traditional economic strength it is necessary that reforms reflect a coherent vision about the reorientation of economic policy – combining a growth and stability oriented macroeconomic policy with structural reforms – and are implemented according to a transparent and predictable roadmap.
Topic:: Development, Economics, and Industrial Policy
Political Geography:: Europe and Germany

119. Public Sector Modernisation: Modernising Public Employment

Publication Date:: 07-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: When it comes to the nuts and bolts of government, OECD countries have one thing in common: a core public service. In other words, a centrally controlled bureaucracy made up of people working in ministries, departments and government agencies to carry out the business of government. Civil service structures have evolved around the idea that public employment is different from other types of work and therefore requires a special employment system and structure.
Topic:: Civil Society, Development, Economics, and Government

120. The Significance of Knowledge Management in the Business Sector

Publication Date:: 07-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Knowledge management – how organisations track, measure, share and make use of intangible assets such as an employee's ability to think fast in a crisis – is increasingly important in a fast-changing knowledge society. Organisations have always managed knowledge, even if they did not use the term knowledge management. For example, a person experienced in operating or repairing a particular machine could pass their knowledge on to newcomers.
Topic:: Development, Economics, Education, and Industrial Policy

121. Economic Survey of the Euro Area, 2004

Publication Date:: 07-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The euro area has shown disappointing resilience to shocks and its income gap against the best performing countries remains large and is widening. The differences between individual euro area countries are even more striking and the forces that influence convergence in economic performance across the area are largely the same as those that shape the economic performance of the area.
Topic:: Development, Economics, and International Trade and Finance

122. Economic Survey of the Russian Federation, 2004

Publication Date:: 07-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The major economic challenge facing Russia is the achievement of long-term, sustainable growth that would allow for a relatively rapid convergence between living standards in Russia and the OECD economies. The nature of this challenge is largely determined by Russia\'s economic structure. At present, Russia\'s economy is highly dependent on the export of a limited range of natural resources, chiefly hydrocarbons and metals. This presents policymakers with a number of specific problems. In particular, resource dependence makes the Russian economy especially vulnerable to external shocks. It is therefore difficult to overstate the importance of prudent macroeconomic policies, especially as the budget relies heavily on resource taxes and is thus influenced by volatile energy prices. Hence, exemplary fiscal discipline, in particular, is crucial to reducing Russia\'s vulnerability to commodity-price cycles. Yet while resource dependence brings with it certain macroeconomic risks, economic performance will continue to depend to a great extent on the performance of resource-exporting sectors for the foreseeable future. This makes reform of the natural gas sector an urgent priority. In the absence of substantial reform, the gas industry, which is critical to both exports and the domestic economy, could well stagnate or decline.
Topic:: International Relations, Development, and Economics
Political Geography:: Russia

123. Access Pricing in Telecommunications

Publication Date:: 06-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: OECD countries now have an average of 5-6 years of experience with competition in the telecommunications industry. The liberalisation process has been guided by principles such as minimising barriers to entry and ensuring that new entrants have access to essential services at non-discriminatory terms and conditions. Experience has now shown that the conventional understanding of these principles needs to be refined in order to ensure the on-going, long-term development of competition in the industry.
Topic:: Development, Economics, Industrial Policy, and Science and Technology

124. Economic Survey of Poland, 2004

Publication Date:: 06-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Poland has made impressive progress in the transformation of its economy and the accession to the European Union on 1st May 2004 marks another historical event. It follows 15 years of profound change and accomplishment. More than 75 per cent of GDP is now produced in the private sector, the economy is well integrated with those of western European nations and inflation has been brought down to low levels. After an initial fall, output has been growing continuously for more than 10 years and, on average, Poles are much better off now than they were then. However, the striking drop in employment since 1998 is suggestive of serious remaining problems. To address these, much more needs to be done, notably in terms of raising productivity, expanding employment and increasing per capita income, which is 41 per cent of OECD levels.
Topic:: Development and Economics
Political Geography:: Europe and Poland

125. Agricultural Support: How is it Measured and What does it Mean?

Publication Date:: 06-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: OECD governments have a long history of pursuing agricultural policies, with objectives ranging from supporting farm incomes to securing safe food and environmental quality. Policy measures are equally varied, including instruments such as import tariffs, export subsidies and a host of different government payments to farmers. Many of these policies share the common feature that they transfer money to farmers, and thereby impact on production decisions, incomes, international trade and the environment.
Topic:: Agriculture, Development, Economics, and Environment

126. Economic survey of Korea, 2004

Publication Date:: 06-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Korea has been one of the fastest growing economies in the OECD area over the past five years, with an annual growth rate of about 6 per cent. Such rapid growth, which has lifted per capita income to two-thirds of the OECD average, reflects Korea's underlying dynamism and its progress in implementing a wide-ranging reform programme in the wake of the 1997 crisis. However, the recession in 2003 – which was due in part to structural problems in the labour market and in the corporate and financial sectors – indicates that the reform agenda is unfinished. Sustaining rapid growth over the medium term as the contribution from inputs of labour and capital slows requires further progress in structural reform, particularly in the labour market and in the corporate and financial sectors, accompanied by appropriate macroeconomic policies.
Topic:: Development, Economics, and Government
Political Geography:: Asia and Korea

127. Competition Law and Policy in Mexico

Publication Date:: 06-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Mexico's competition policy was introduced as part of a decade-long reform initiative, begun in the mid-1980s, to end central government control and protection of domestic economic activity and to develop instead a market-based economy. A key element in the government's economic reform was the adoption, in 1993, of the Federal Law of Economic Competition (LFCE), and creation of the Federal Competition Commission (CFC) to enforce it.
Topic:: Development, Economics, and Government
Political Geography:: North America and Mexico

128. Keeping Children Safe in Traffic

Publication Date:: 05-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Road accidents are the number one killer of children in OECD countries. An estimated 100,000 children have died on the roads in the past 20 years – almost 100 per week on average. Of course, this level of fatalities is not acceptable. Road transport safety, particularly for children, should be a priority for all governments.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

129. Economic Survey of the Netherlands, 2004

Publication Date:: 05-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The economic downturn in the Netherlands, like the boom that preceded it, has been more marked than in most other European countries. This is partly attributable to greater exposure to international trade, especially with the US, and to greater sensitivity to international stock price movements. But there are also some structural policies – pension fund regulation, housing and wage setting institutions – that have undermined economic efficiency and contributed to the amplitude of the cycle. Furthermore there has been a marked deterioration in public finances, part of which is structural. Longer term growth trends too are unfavourable. In view of these developments, the main challenges are to reform those policies that have reduced efficiency and increased volatility, put public finances on a sustainable path, and, most importantly, increase trend growth by increasing both employment and productivity.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Europe and Netherlands

130. Mobilising Public Opinion Against Global Poverty

Author:: Jude Fransman and Henri-Bernard Solignac Lecomte
Publication Date:: 05-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Citizens in OECD countries quite unambiguously support more solidarity and justice at the international level; however, despite the adoption of the Millenium Development Goals (MDGs) by their governments in 2000, they remain insufficiently informed and educated about global development challenges. With increased understanding of the issues, citizens could provide greater support for more efficient and coherent development policies as well as for more funding. This requires new efforts by national authorities to report on desirable outcomes and on the results and effectiveness of international development policies towards achieving them.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

131. Security System Reform and Governance:Policy and Good Practice

Publication Date:: 05-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Security in all its dimensions is fundamental to reducing poverty, protecting human rights and achieving the Millennium DevelopmentGoals (MDGs). Security concerns not only the stability of the state and the security of regimes. It also involves the safety, well-being and freedom from fear of a nation and its people.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

132. Economic Survey of the United States, 2004

Publication Date:: 04-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Economic performance over the past two decades has been impressive. Underpinned by an increased reliance on competitive forces, which have been stronger than in most other member countries for some time, productivity and output have accelerated significantly. In recent years, helped by timely macroeconomic policy responses, the economy has demonstrated its capacity to adjust to adverse shocks, so that the per capita growth gap against other countries has widened further. The outlook is for this to continue in the next few years, with real GDP expanding by around 4 per cent per annum. Nonetheless, there are a number of challenges that need to be addressed to sustain these laudable economic outcomes. By far the top priority is to confront the current and projected federal budget deficits. The fiscal stimulus of the past few years has been helpful in supporting the recovery, but if public dissaving is not reduced, interest rates may be higher, ultimately implying slower growth in economic potential. Increased budget discipline, and indeed significant reform on both the spending and revenue sides of the budget, will be necessary because of the impending demographic pressures on government finances. Corrective fiscal measures will also assist the unwinding of the current account deficit, which is unusually large for this stage of the cycle. As the Federal Reserve begins to move the federal funds rate back to a more neutral level, it will need to be especially attentive to the clarity of its communications with the markets. Further corporate-governance and accounting reforms would help to underpin confidence of domestic and foreign investors, thereby facilitating orderly current-account adjustment. Less reliance on import restrictions and maintaining a leadership role in trade liberalisation would favour structural adjustment at home. Furthermore, despite the generally pro-competitive thrust of antitrust and other regulatory policies, a number of areas deserve attention, notably intellectual property rights, telecommunications and electricity, where further reforms would be welfare enhancing.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: United States

133. Innovative Approaches to Funding the Millennium Development Goals

Author:: Helmut Reisen
Publication Date:: 04-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: At the United Nations Millennium Summit in September 2000, world leaders adopted the Millennium Development Goals (MDGs), which set clear targets for reducing poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against women by 2015.The need for additional development funding, if the MDGs are to be achieved by 2015, is widely recognized. The figure of additional $50 billion per year, roughly the present total of ODA spent by DAC donors, is often quoted (e.g. Zedillo Report). This estimate is of back-of-the-envelope nature, and it seems to be the minimum estimate. If governments exclude the option to abandon the MDGs, they have either to double the existing ODA or to find alternative sources of comparable magnitude–or a balance of the two. The challenge to the international community is mounting by the day.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, Political Economy, and United Nations

134. OECD Environmental Strategy: 2004 Review of Progress

Publication Date:: 04-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: OECD countries are working hard to tackle the environmental problems they face, but much more ambitious policies will be needed if their national and international commitments are to be met. Progress has been made in a number of areas since OECD ministers agreed in 2001 on an Environmental Strategy for the First Decade of the 21st Century. For example, air pollution regulations have been tightened, new market-based policies to mitigate climate change at least cost are in place or planned, regulatory frameworks are being strengthened to protect the environment and human health from chemicals, and a number of key international agreements to protect the marine environment and ensure sustainable fishing have recently entered into force, thanks in part to their ratification by some OECD countries. But current policies are insufficient to adequately protect biodiversity resources, or to address climate change. Economic growth no longer leads automatically to an equal increase in pressure on the environment in some key sectors, indicating at least some “decoupling” of environmental pressures from economic growth, but the environmental impact of continuing road transport expansion, energy production, and agricultural practices remains high.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

135. The OECD Environmental Strategy: Progress in Managing Water Resources

Publication Date:: 04-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Water is a vital resource for society but needs to be managed carefully to ensure that people have access to affordable and safe drinking water and sanitation, without depleting water resources or damaging ecosystems. The OECD Environmental Strategy for the First Decade of the 21st Century, adopted by OECD ministers in 2001, highlights water management as one of the key issues in maintaining the integrity of ecosystems.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

136. Economic Survey of Norway, 2004

Publication Date:: 03-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The short-term outlook for Norway is good. Helped by global recovery, growth could proceed at above potential rates for a while, especially as inflation is well below target and there is some cyclical slack in the labour market. Interest rates are low, and fiscal stimulus needs to be withdrawn. Indeed, it will be important to rein back spending over the next few years in order to get back onto the self-imposed track of permissible spending of oil revenues that is consistent with notions of intergenerational fairness. In the longer term, the case for continuing fiscal restraint is even stronger. Reflecting both demographic factors and the maturing of the system, public spending on pensions will rise considerably over the next decades, even if the major reforms now under discussion are quickly implemented. In the future, growth of living standards will have to rely primarily on increases of productivity and employment in the non-oil private business sector. To maintain vigour in the non-oil economy, reforms in both labour and product markets, and in social policies and transfer programmes are called for. There are important interdependencies among policies in these areas and it is unlikely that success will be achieved without advancing with comprehensive reforms. More flexibility is desirable in wage setting, particularly in the public sector. Proposed changes in the fields of education and training will raise skill levels, but value for money needs to be an important criterion when prioritising the programmes. Competition should be strengthened through regulatory reform and a more active policy stance: proposed amendments to strengthen the enforcement framework are an opportunity to make competition policy more central, and should include an independent appellate body. State ownership and subsidies to agriculture should be reduced. Norway's comprehensive social programmes ensure that poverty is virtually non-existent, and a strong work ethic and a high level of social trust led to comparatively little abuse in the past. However, the very rapid rises in numbers on disability pensions and on sick leave suggest that stricter controls are needed. Advancing the reform efforts suggested above will be necessary to harness the more efficient use of resources, thereby raising non-oil potential output and ensuring that Norway maintains a high standard of living in the years to come.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Norway

137. Public Sector Modernisation

Publication Date:: 03-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Most OECD countries have been actively reforming their public sectors for two decades. Initially the problem seemed to be a relatively straightforward one of improving efficiency, reforming management practices, and divesting public involvement in commercial enterprises. These reforms have indeed had a major impact but they have also given rise to some unexpected problems of their own. Even a seemingly straightforward action such as simplifying a welfare benefit form and cutting the time taken to process it may, for example, encourage more people to apply for the benefit, increasing the workload and making it more difficult to cut waiting time. While more efficient government is certainly desirable, efficiency alone is not a guarantee of better government.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

138. The Quality of the Teaching Workforce

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The quality of the teaching workforce is a major consideration in any nation's aspirations for an educational system of high quality. Teachers form the core of the school system and a wide range of research studies has confirmed the importance of teacher quality for student learning. Thus, the development of policies seeking to improve the quality of teachers and ensure that all students receive quality teaching is a central concern for governments.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

139. Raising the Quality of Educational Performance at School

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: To succeed in a rapidly changing world, individuals need to advance their knowledge and skills throughout their lives. Education systems need to lay strong foundations for this, by fostering knowledge and skills and strengthening the capacity and motivation of young adults to continue learning beyond school.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

140. Education and Equity

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: For a more equitable society, all individuals, independently of their socio-economic background, origin and gender, should ideally have access to equivalent learning opportunities; those with organic disabilities, learning difficulties or social disadvantages should benefit from specific support; and finally, improving outcomes of all learners, and especially those who are less successful, should be a permanent objective of all educational systems.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

141. Lifelong Learning

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The concept of lifelong learning as an educational strategy emerged some three decades ago, through the efforts of the OECD, UNESCO and the Council of Europe. It was a response to the anomaly that while individuals learn throughout life, the provision of education opportunities was limited largely to the early phase of life, dominated by formal education. There was a perceived need to provide a “second chance” to those who did not benefit from educational opportunities available during childhood and youth.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

142. Corporate Governance in Developing, Transition and Emerging–Market Economies

Author:: Charles Oman, Steven Fries, and Willem Buiter
Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Corporate governance was long ignored as a matter of potential importance for the development of a nation's economy. It remained virtually invisible as a development policy issue until the East Asian financial crisis of 1997-1998, followed closely by those in Russia and Brazil, drew attention to the problems of “crony capitalism” and their perceived relationship to poor local corporategovernance practices in several emerging-market economies. Yet as the perceived threat to global financial markets raised by those crises recedes and international pressures to strengthen corporate governance in emerging markets weaken, the danger is that local efforts significantly to improve corporate governance in the developing, transition and emerging-market economies will flag.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

143. OECD Territorial Review of Montreal

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The metropolitan region of Montreal (Metropolitan Montreal) is Canada's second most populous area after Toronto, and is home to almost 3.5 million people. With its low costs, high quality of life, and wide range of industrial, cultural, educational, and social strengths, Montreal has a vibrant and dynamic economy, but its diversity and complexity can lead to institutional isolation and fragmented decision- making.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Canada

144. Economic Survey of Slovak Republic, 2004

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Slovakia is engaged in an ambitious reform process which has a potential to quicken productivity growth, increase the employment rate and accelerate the catching-up to the per capita income levels of more advanced OECD countries. Short-term outcomes may be demanding socially and politically, but stimulus to growth and job-creation should help overcome the hardship. Policymakers should fully enforce the new framework for creating and doing business and support it with the full force of law. Human capital enrichment for new entrants through education reform is critical, while intensified re-training for the long-term unemployed is also indispensable, including for the Roma population. Demand for labour will be stimulated by the planned reductions in employment costs in the low end of the market, as well as by the fundamental tax reforms raising the return to enterprise creation and development. Further cuts in social contributions, which remain among the highest among OECD countries, should be a priority. The reform of the public spending system, which is already well engaged, should facilitate such additional cuts and help promote a smaller and more effective government. Continuing efforts of fiscal consolidation will improve the macroeconomic policy mix and help maintain supportive monetary conditions in the face of currency appreciation pres- sures from EU accession, and will help meet the Maastricht nominal convergence rules on a sustainable basis prior to euro area participation. The nominal flexibility of wages and prices should be conserved in order to preserve the competitiveness of the economy, notably of the domestic manufacturing and service firms. By sticking to this multi-pronged policy agenda, Slovakia would make its growth process more balanced and more job-rich and would accelerate further its already successful catching-up process.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Slovakia

145. Economic Survey of Sweden, 2004

Publication Date:: 02-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: With sound monetary and fiscal frameworks and a good macroeconomic position, Sweden is better placed to face the longer-term challenges of an ageing population than many other OECD countries. As elsewhere, these demographic trends will put downwardpressure on growth in potential output and increase burdens on public expenditure over time. Managing this situation effectively within the welfare state approach while enjoying the highest possible living standards will be easier if the country can raise productivity growth, expand the effective labour supply, and get public finances quickly back onto their intended medium-term path. Productivity growth could be boosted further by increasing the pressures from competition in all parts of the economy, building on earlier liberalisation efforts. Effectively addressing cartels and other anti-competitive behaviour, removing regulatory obstacles and further exposing the large public sector to competition would all help. Productivity growth could also be raised if workers and capital moved more quickly and easily in response to shifts in costs and demand for different outputs. However, taking the rewards for productivity improvements in the form of lower working hours diminishes the tax base; further reductions in high marginal tax rates would reduce the incentive to do so. Although employment rates are already high overall, more could be done to get young people qualified and into the workforce earlier and to improve the integration of immigrants. Reducing the numbers of people drawing sickness and disability benefits will not only boost effective labour supply but also help ease expenditure pressures. More generally, tight expenditure restraint will be necessary to attain the government's surplus target. The budget framework could be refined in ways that would help to ensure that public finances are sustainable in the long term, while also providing room to moderate marginal tax rates in order to boost incentives to work, save and invest. Further progress towards environmental sustainability could focus on improving the cost-effectiveness of policies. Ultimately, creating faster growth and maintaining the welfare state depend on continuation of far-sighted economic management.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Sweden

146. Economic Survey of Switzerland, 2003

Publication Date:: 01-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Although trend growth of GDP has been meagre for two decades (1.25 per cent against 2.75 per cent for the OECD average), per capita income in Switzerland remains among the highest in the OECD. In recent years, output growth was less resilient than in most other OECD countries, with the economy being in recession during the first semester of 2003. This is partly due to the global slump in the financial and capital goods sectors which are very important for the Swiss economy, but the unsatisfactory growth performance is largely attributable to the timid pace of structural reforms over many years. Against this background, there are three major challenges for economic policy.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Switzerland

147. Economic Survey of Hungary, 2004

Publication Date:: 01-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: For Hungary to maintain strong growth, macroeconomic policy has to aim for sound and sustainable public finances, low inflation and maintaining the competitiveness of its FDI-driven export sector. Fiscal consolidation has to focus on lasting structural reforms, which bring down the volume of government expenditure in a sustainable way. Revenue increases buy time for the 2004 budget, but thistime has to be used to implement measures that will durably reduce spending in a medium-term framework. The difficult balancing act for monetary policy between achieving inflation targets and steering the exchange rate for entry into the euro zone could be made easier if fiscal targets are achieved. The move to base future budgets on the joint inflation target is a welcome step to improve co-ordination between the government and the Central Bank and should be continued. In wage setting, the indicative wage guidelines should be used to communicate disinflation in the runup to EMU, and thereby limit the risk of unintended real wage increases. Wage moderation should also be assisted by measures which increase the supply responsiveness of labour. Any room created for tax cuts should be used to reduce Hungary's large tax wedge on labour, which interacts negatively with some social benefit programmes. Large regional disparities should be addressed by measures which increase labour mobility and broaden investment across regions through further improved infrastructure. Business conditions can be further improved by addressing the low level of competition in some network industries and more generally improving the conditions for market entry in the domestic sector. The considerable costs of programmes to reduce the emission of greenhouse gases and also more local air pollutants could be reduced with the wider application of economic instruments. Hungary will only be able to reap the full benefits of European Union accession and EMU entry if it establishes a sound macroeconomic framework, boosts labour force participation and sustains high productivity growth.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Hungary

148. Science and Innovation Policy: Key Challenges and Opportunities

Publication Date:: 01-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Science and technology exert a growing influence on society and the economy. Scientific achievements continue to expand the frontiers of knowledge and increasingly contribute to the technological progress that affects how people live and work. New science-based technologies help protect the environment, build safer homes, schools and factories, and develop energy- saving transport systems. Advances in genetics save lives and improve health standards throughout the world. Industries based on new technologies employ millions of highly skilled workers in the OECD and beyond. Information and communications technologies (ICT) have enhanced their productivity and made it possible for a greater number of individuals, firms and countries to take part in the knowledge-based economy.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

149. Economic Survey of the United Kingdom, 2004

Publication Date:: 01-2004
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The performance of the UK economy has been impressive in recent years, underpinned by wide-ranging structural reforms and sound macroeconomic policy frameworks. The OECD projects growth above potential in 2004 and 2005, with unemployment remaining low, but instability stemming from the housing market is a risk. Monetary policy should continue to tighten to reduce future inflationary pressures and the risk of a further sharp rise in house prices from becoming a potential source of fragility. At the same time, the current rigidity of house supply should be eased by reforming land planning, while a reform of the regressive council tax could help to reduce the risk of housing market instability. Over the projection period, government spending will continue to rise as a share of GDP, reflecting the government's ambitious targets in priority areas. Slowing spending growth may be warranted on efficiency grounds: bottlenecks have become apparent, while time is needed to pilot new innovative approaches. More generally, getting incentives right is essential to meet the ambitious service targets. Slowing spending growth would also benefit the public finances. An income-contingent contribution scheme for university graduates is an equitable way forward; other forms of user charges not compromising equity concerns could improve efficiency. Both are preferable to raising taxes. Trend growth has already been boosted by the sharp decline in structural unemployment, but measures are still needed to reduce the number of inactive, especially those on incapacity benefit. While educational performance of students has risen, policy needs to further address the lack of vocational skills as one element in a strategy to reduce the productivity gap with the best performers elsewhere. In this respect, competition is also important. The government has strengthened the competition framework and active enforcement along with the market studies of the Office of Fair Trading and the Competition Commission's market investigations should help to ensure that markets become more competitive. However, planning restrictions and market power are a problem in the retail sector and industry regulators will need to remain vigilant in the electricity, gas and telecom sectors. Ensuring macroeconomic stability, while addressing the remaining weaknesses through further structural reforms offers the prospect of continuing strong economic performance.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: United Kingdom

150. Peer review: a tool for co-operation and change

Publication Date:: 12-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Democratic governments want policies that are in the best interest of their citizens. But how can they - and their voters - be sure they are making the right choices? One answer is by learning from the tried and tested experience of others. One of the OECD's core strengths is its ability to offer its 30 members a framework to examine and compare experiences and discuss "best practices" in a host of areas from economic policy to environmental protection or strategies to create jobs.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

151. Economic Survey of New Zealand, 2003

Publication Date:: 12-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Past macroeconomic and structural reforms have been contributing to stronger growth for the last decade. The economy has also become more resilient, weathering the recent global slowdown well. Productivity growth has picked up, although not by enough to have yet moved New Zealand up the OECD income rankings. Its small size and remoteness may be factors, so encouraging global linkages is important, but more remains to be done to strengthen fundamentals. Recent economic performance has been encouraging: buoyant domestic demand has helped maintain output growth in spite of weak trading partner growth, an appreciating exchange rate and a fall in the terms of trade from recent high levels. Monetary policy will need to be vigilant, given that the economy is probably operating above potential and the housing market is strong. In considering fiscal policy options, the focus should be on those that contribute to the growth performance of the economy, whilst remaining firmly based on a prudent assessment of future revenues and of the long-term challenges connected to ageing. In its growth strategy the government appropriately emphasises fostering innovation, skills and talent, and developing global linkages, but it should maintain a level playing field and avoid sector-specific incentives. It should continue to remove regulatory obstacles to investment, particularly in the area of infrastructure, by improving and speeding up the environmental consent process. The decision to resume cutting tariffs is commendable and also furthers the objective of supporting development in poorer countries. Immigration helps to enlarge the pool of available skills and to develop global connections, both of which contribute to enhancing growth potential. Recent changes that focus admis- sions policy more toward skilled and more employ- able immigrants will help, though the temptation to link immigration policy too closely to manpower plan- ning should be resisted. The labour market functions reasonably well, but the government should avoid measures that would reduce flexibility and raise labour costs. The employment rates of marginal groups could be improved by strengthening incentives to move from welfare to work. In short, only through this whole range of efforts to boost productivity growth and improve labour market outcomes can the nation meet its income aspirations.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: New Zealand

152. Economic Survey of Japan, 2003

Publication Date:: 12-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The current economic upturn does not diminish the urgency of continuing with fundamental reforms to lay the foundation for a robust and sustainable expansion strong enough to reverse the downward trend in Japanese living standards relative to other OECD countries and to restore price stability after nearly eight years of deflation. Given the negative implications of falling prices, the Bank of Japan should strengthen its quantitative easing policy by further expanding the range of assets it purchases. In addition, the effectiveness of monetary policy depends critically on resolving the problems in the banking and corporate sectors. The authorities should follow through on the objective of substantially reducing non-performing loans and revitalising the corporate sector, while ensuring that banks are adequately capitalised, using public money if necessary. Moreover, it is important to scale back the role of government financial institutions. Given the likely negative impact of accelerated bank and corporate-sector restructuring on activity and the need to ensure that the recovery is not ended prematurely, excessive fiscal policy tightening should be avoided, while any increase in revenue due to buoyant activity should be used to reduce the deficit. Achieving the moderate fiscal consolidation projected for 2004 is a key to building confidence in the longer-term sustainability of public finances, which also requires a credible consolidation plan for 2005 and the years beyond, including measures to limit spending and boost tax revenues. Moreover, it is essential to prevent increases in spending as a share of GDP, an objective that requires reform of pension and health care pro- grammes in the face of rapid population ageing. Given the constraints on macroeconomic policy, a successful programme to revitalise the economy will require a broad programme of structural reform, focused on strengthening competition to boost consumer welfare and improve the allocation of resources. To achieve such an outcome, competition policy should be improved by making the Fair Trade Commission stronger and more effective and by creating a framework conducive to competition in network industries that have been liberalised, such as telecommunications and energy. Expanded international trade, greater inflows of direct investment and removal of outdated regulations - accelerated through the recently created special zones - also have important roles to play in boosting competition. In sum, a broad-ranging programme of carefully designed macroeconomic policies and far-reaching structural reforms to enhance Japan's growth potential is needed.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Japan

153. Fighting Bribery in International Business Deals

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Bribing public officials to obtain international business raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

154. Integrating Information and Communication Technologies in Development Programmes

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Information and communication technologies (ICTs) can play a key role in development and poverty reduction. ICTs can help promote economic growth, expand economic and social opportunity, make institutions and markets more efficient and responsive, and make it easier for the poor to obtain access to resources and services. It can also make it easier to make the voices of the poor heard in the decisions that shape their lives.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

155. Economic Survey of Chile, 2003

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: A stable institutional framework in Chile has provided the foundations for growth and confidence of international markets. While a comprehensive social agenda is putting pressure on resources under the recent economic slow-down, the Chilean government should be praised for having maintained a sound fiscal and monetary stance and building on its unique institutional framework based on the freedom of choice. The current challenges are to strengthen the coherence of this development policy agenda with a vision to long-term growth and broader social consensus. Chile is a small open economy, for which international competitiveness is the cornerstone for sustainable growth. The latter is the outcome of the multiple policy synergies discussed above. The first important link is to continue preserving a sound macroeconomic framework avoiding distortions that may produce excessive real exchange rate appreciation, which could hinder the incentives to invest and expand employment in the tradable sector. The deepening of financial intermediation and development of risk capital are needed to support the emergence of new and more innovative firms. A better functioning of the labour market is critical to the development of the enterprise sector. In particular increased female labour participation would support the development of light industries and services. Investment in human capital, in particular education and workers' training, is needed to develop products with a higher technological content. The administrative conditions and regulation of product markets should also be improved, notably by reducing administrative barriers to enterprise creation and removing distortions in the tax treatment of cross-border interenterprise financial flows. These policy link-ages would help increase product variety and intra-industry trade that could contribute to reduce the vulnerabilities associated with an excessive reliance on natural resources and export concentration. In all these areas of reform, Chile is now in a position to emulate and converge towards the more advanced benchmark of OECD countries.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Chile

156. Policy coherence: Vital for global development

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

157. Economic Survey of Mexico, 2003

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Fiscal rectitude, progress towards macroeconomic stabilisation, and past structural reforms have been necessary and desirable, but have not yet been sufficient to raise potential growth to rates that would allow closing the gap in living standards with other OECD countries. Prolonged cyclical weakness, with no unambiguous signs yet of a vigorous upturn, has depressed private investment, which is also hampered by legal and regulatory obstacles in key sectors, electricity in particular. Mexico's catching-up is further hindered by low human capital accumulation. The administration has insufficiently solid and stable revenue to finance necessary social spending and public infrastructure investment on the required scale. Policies should therefore give priority to broadening the tax base and creating conditions - economic, financial and legal - in which a competitive private sector has the ability and incentives to invest more. It is also important to spend more productively in areas such as education; efforts there should concentrate on making the existing school system, and the teaching body, more effective, and on allocating more resources to the training of adults. Although the large informal sector provides a kind of safety valve for many of the low-skilled, the formal sector must become a more attractive place in the longer term in which to work and to employ. Emigration also provides a safety valve, and remittances lift many households out of acute poverty. A migration agreement between the United States and Mexico would bring benefits to both. Levels of water and air pollution are unacceptably high in Mexican urban areas, and though policies are addressing this, the (implicit or explicit) pricing of natural resources and of polluting activities is far from optimal. Overall, Mexico needs to move ahead with comprehensive structural reforms, including most immediately approval of the tax, electricity and labour reforms, so as to fully release the country's growth potential and provide resources to deal with important issues of human capital and poverty relief.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Mexico

158. The Economic Consequences of Violent Conflict in West Africa

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Violent conflict undoubtedly affects West Africa's prospects for economic development and integration. However, the nature of these effects is still poorly understood. As part of the SWAC regional programme on conflict and stability, the SWAC Secretariat undertook a literature review and an electronic consultation of southern and northern agencies and specialists in summer 2003. This aimed to assess the economic consequences of violent conflict at multiple levels; identify operational lessons on how best to deal with these effects; and highlight key areas for further work where the SWAC can add value. The core findings of the review are presented in this note.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: West Africa

159. Poverty and Health in Developing Countries: Key Actions

Publication Date:: 11-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Health is higher on the international agenda than ever before and improving the health of poor people is a central issue in development. Poor people suffer worse health and die younger. They have higher than average child and maternal mortality, higher levels of disease, and more limited access to healthcare and social protection. But health is also a crucially important economic asset, particularly for poor people. Their livelihoods depend on it. When poor people become ill or injured, their entire household can become trapped in a downward spiral of lost income and high healthcare costs.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

160. Economic Survey of Austria, 2003

Publication Date:: 10-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: To raise Austria's growth potential, significant changes in the institutional set-up will be necessary in order to achieve sound public finances, higher labour force participation - in particular among older workers - and to open up the sheltered sectors of the economy to healthy competition. Although the government's emphasis on structural spending reductions to achieve eventual budget balance while also creating room for tax cuts is appropriate, earlier fiscal easing means that under current plans budget balance will be restored only after 2007. Such a deficit path is not appropriate given Austria's high debt-to-GDP ratio. Stronger spending restraint will be necessary in order to create room for the major tax reform that the authorities are committed to. Public expenditure reform is focused on reducing public sector employment, but the cost savings are eroded by the generous early retirement programmes used to achieve these employment reductions. Comprehensive public sector reform has to address the complicated -federal fiscal relationships and make sure that tasks are allocated to the most appropriate private or public agent. More cost-benefit analysis and output performance budgeting would help to improve the efficiency with which public resources are used. The pension reform undertaken by the government marks considerable progress in moving to sustainable old-age income replacement through measures designed to increase further the labour force participation rate of older workers and women and lengthen working lives considerably. Further necessary action includes measures to improve the employability of older workers, in particular the elimination of excessive seniority wage components, and a more stringent revision of the remaining age-specific employment protection regulation. The large differences in economic performance between manufacturing, which is fully exposed to international competition, and services points to considerable scope for increasing competition by reducing entry barriers and facilitating the operations of the newly established competition authority. Proceeding along these lines will help Austria to realise the positive potential associated with Eastern enlargement while at the same time becoming more resilient to adverse supply side shocks.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:: Austria

161. OECD Health at a Glance - How France Compares

Publication Date:: 10-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: In many respects, France fares well among OECD countries in terms of indicators of the health status of its population and resources allocated to its health care system. The French population (and particularly French women) enjoys a relatively high life expectancy compared with the average across OECD countries. The French have a free choice of doctor, and can approach relatively easily both generalists and specialists. Also, the French health system has not generally experienced the problems of long waiting lists for certain treatments, as has been the case in several other OECD countries. The health care system in France is predominantly funded through public sources, but with services delivered by both the public and private sector. Universal access is provided to doctors and hospital services, with some co-payments for patients which vary depending on the type of services. Since the introduction of the Universal Health Coverage Law (Loi de la Couverture médicale universelle or CMU) in 2000, people with low income who are not covered by complementary insurance have access to doctors and hospitals free of charge. Overall, public satisfaction with the health care system in France has traditionally been much higher than in most other countries. However, health spending in France is relatively high in comparison with the OECD average.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: France

162. Economic Survey of Luxembourg, 2003

Publication Date:: 10-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The prospects for lower growth in the medium-long term will require far-reaching fiscal and structural adjustment. The authorities have made a start in reducing public expenditure growth in line with these more subdued prospects but more restraint will be necessary to meet their medium-term objectives. Adjustments to the general public pension scheme, preferably by reducing the high replacement rates, will be needed to make the scheme sustainable in the long term. The authorities have begun to tackle the early retirement problem, which will help to reduce the scale of the required adjustments to make the general public pension scheme sustainable, but more needs to be done. The reforms to the disability pension, which is one of the major routes to premature withdrawal from the labour force, should be complemented by reducing the earlyretirement pension on an actuarial basis in relation to a pension taken at the official retirement age and by reducing the ease with which imputed contributions can be obtained. Lower growth will also diminish the buffering role of cross- border employment on the national labour market, increasing the risk that adverse shocks increase structural unemployment. To counter this risk, the authorities should reduce the high replacement rates for unemployment and related benefits and ease employment protection regulation.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: Luxembourg

163. Public Sector Modernisation

Publication Date:: 10-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Most OECD countries have been actively reforming their public sectors for two decades. Initially the problem seemed to be a relatively straightforward one of improving efficiency, reforming management practices, and divesting public involvement in commercial enterprises. These reforms have indeed had a major impact but they have also given rise to some unexpected problems of their own. Even a seemingly straightforward action such as simplifying a welfare benefit form and cutting the time taken to process it may, for example, encourage more people to apply for the benefit, increasing the workload and making it more difficult to cut waiting time. While more efficient government is certainly desirable, efficiency alone is not a guarantee of better government.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

164. E-Government in Finland: An Assessment

Publication Date:: 09-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Since the late 1990s, Finland has been a leader in exploiting information and communication technology (ICT) to renew its economy and to reform its public administration. Its reputation for successfully providing proactive electronic government services and information has brought officials from around the world to learn from its experience.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

165. Checklist for e-Government Leaders

Publication Date:: 09-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: E-government is more about government than about "e". As a tool to achieve better government, e-government offers potential solutions to leaders across the whole of government: IT managers, programme managers, agency heads, government-wide e-government planners and co-ordinators, and politicians all have a role to play. Yet the roles of these leaders differ, and even the role of an individual leader changes as e-government develops in a given country. At the beginning there may be an immediate need to foster innovation and diffusion of technology, whereas organisational change becomes more important once IT applications are in place. Certain key e-government principles are common to all leaders, though their relative importance will differ. While the elements in this policy brief may be applicable to leaders at various levels, they are especially relevant to leaders with broad responsibilities and a strategic vision of e-government.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

166. Attracting Investment to China

Publication Date:: 09-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Foreign investment has played an important role in China's economic development for almost a quarter of a century and is vital for that development to continue. But while China has been highly successful in attracting foreign direct investment (FDI) so far, and has made significant progress in improving its FDI policy framework, it has not fully exploited its potential to attract investment from OECD countries. To make the most of the potential benefits of joining the World Trade Organization (WTO) and to increase FDI inflows while enhancing their contribution to domestic development China will need to persevere with efforts to bring its laws and regulations into harmony with internationally recognised standards and to ensure they are fully and consistently implemented at local level.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: China

167. Economic survey of Canada, 2003

Publication Date:: 09-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Canada's economy has done comparatively well over the past two years, demonstrating a noticeably improved resilience to unfavourable shocks. Over the medium term the economy is poised to achieve growth rates that compare favourably with past performance, but that will not be enough to eliminate the per capita income gap with the United States. The fundamental challenge is to make Canada an even more attractive place to live, work and invest. While past reforms have begun to pay off, there is still unfinished business. To boost the employment rate further the government should reduce disincentive effects arising from the tax and benefit systems by, for example, making greater use of in-work benefits and reintroducing experience rating of Employment Insurance users. Faster productivity gains are more likely to be achieved in an economic environment conducive to innovation. A key to greater dynamism is strengthening competition by eliminating remaining foreign ownership limits and barriers to internal and external trade and continuing electricity deregulation. Investing in skills should also remain a priority, with a particular emphasis on adult education. The nation has benefited by importing human capital from abroad through immigration but needs to intensify its efforts to remove the obstacles that prevent immigrants from having their skills fully utilised in the labour market. Having introduced a sound fiscal framework and reformed its public pension system Canada is in a better position than most other countries in facing ageing-related fiscal challenges, but the trend rise in health-care costs remains a risk. With the recent budget the government chose to address the short-term needs of the existing system. But, ultimately, ways to control the rise in budgetary costs - whether through incentives to raise efficiency or through cost sharing - will need to be explored, otherwise the resources needed to finance the future burden should be set aside in advance, for example by setting a bolder debt reduction target. Finally, environmental sustainability will be enhanced with least cost to the economy if the ambitious greenhouse gas emissions reduction is achieved through market-oriented instruments rather than command and control measures or voluntary agreements.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: United States and Canada

168. Civil Society and the OECD - November 2002 update

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The OECD recognises the valuable contribution that civil society can make to the public policy-making process, and attaches great importance to the Organisation's own consultation and dialogue with civil society organisations (CSOs). This continuing dialogue builds trust in public institutions and promotes public understanding of the benefits and challenges of global economic and social change.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

169. Policy coherence: Vital for global development

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

170. Environmentally Sustainable Buildings: Challenges and Policies

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The building sector is economically important in OECD countries, accounting for a significant proportion of industrial activities and jobs. In fact, the construction industry - buildings and infrastructure such as roads and electricity networks - accounts for around 5%-15% of their gross domestic product (GDP), and 45%-55% of their gross capital formation. The industry also provides 5%-10% of total employment in OECD countries. The building sector also has a great impact on the environment. Building activities such as design, construction, use, refurbishment and demolition all affect the environment, either directly or indirectly. p>
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

171. Trade Capacity Building: Critical for Development

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The global annual welfare gains from further multilateral trade liberalisation, involving both tariff reduction and trade facilitation, would be substantial. Recent OECD estimates suggest that they would range, depending on the precise scenario, between US$117 billion and US$173 billion. For individual economies, depending on the region to which they belong, the gains would amount to annual real increases in gross domestic product (GDP) of between 0.2% and 1.8%, the OECD estimates show. These figures are sufficiently impressive to inspire international action. But would the gains be automatic? Would significantly improved market access be enough to stimulate diversification and trade-led growth? And will increased trade necessarily contribute to reducing poverty and achieving the other Millennium Development Goals identified by the international community?
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

172. Opening up Trade in Services Opportunities and Gains for Developing Countries

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Services, from health and education to telecommunications and transport, are becoming the single largest sector in many economies. Not only do they provide the bulk of employment and income in many countries, but in areas such as the financial or telecommunications sectors, services provide vital input for the production of other goods and services. So the efficiency of the services sector is crucial to the efficiency of the overall economy.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

173. Service Providers on the Move

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The development focus of the current multilateral trade negotiations launched in Doha in late 2001 has highlighted the need for trade liberalisation in areas of export interest for developing countries. When it comes to services, a key issue for these countries is the temporary movement of people across borders to supply services, for example in areas such as nursing or information technology.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

174. Regionalism and the Multilateral Trading System

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Regional trade agreements (RTAs) are an integral part of international trade, accounting for almost half of world trade and expected to grow further in the next few years. These agreements operate alongside global multilateral agreements under the World Trade Organization (WTO), and have both positive and negative effects. They can be attractive, for example, because it may be easier for a small group of neighbouring countries with similar concerns and cultures to agree on market opening in a particular area than to reach agreement in a wider forum such as the WTO. They can also offer new approaches to rule-making and so act as stepping stones on the way to a multilateral agreement.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

175. Trade Facilitation: The Benefits of Simpler, more Transparent Border Procedures

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: International trade has grown rapidly in recent years, and with it the relative importance of border procedures such as Customs requirements, adding to the cost for governments and business, and ultimately for the customer. Indeed, surveys suggest that border-related costs such as the expense of supplying the required Customs documents or the surcharges arising from procedural delays when importing goods could total as much as 15% of the value of the goods being traded in some cases.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

176. The Doha Development Agenda: Tariffs and Trade

Publication Date:: 08-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The opening of markets has boosted trade and economic growth worldwide in the past few decades. Yet tariffs – taxes imposed by importing countries on foreign goods – still remain a key obstacle to market access. The potential benefits of further reducing this obstacle are significant. OECD estimates indicate that scrapping all tariffs on merchandise trade and reducing trade costs by 1% of the value of trade worldwide would boost global welfare by more than USD 170 billion dollars a year. These gains would contribute a boost to regions around the world, adding the equivalent of up to 2% to the present annual gross domestic product (GDP) in some areas. No wonder that both developed and developing countries consider substantial tariff reductions as a central goal of the current multilateral trade talks in the World Trade Organization (WTO).
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

177. Economic Survey of euro area, 2003

Publication Date:: 07-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Entering its fifth year of existence, the European Economic and Monetary Union (EMU) has met major headwinds. At the advent of the single currency the euro area experienced solid economic growth, with unemployment falling and public finances rapidly improving. However, a number of structural problems were exposed with the cyclical downturn since 2001, from which the area is recovering only hesitantly. The challenges facing policy makers at present are both of a short-run and medium-run nature. Policy makers are currently grappling with sluggish demand. Responding to this challenge, monetary policy has been eased and fiscal policy reacted through the automatic stabilisers. However, the room for manoeuvre was reduced by lingering inflationary pressures and earlier insufficient fiscal adjustment in several member states. Meanwhile the euro exchange rate has appreciated significantly. Over the medium term, the Community has set ambitious targets and a vast programme for enhancing the performance of labour, product and financial markets. This programme needs to be pursued with vigour, thereby raising the odds of large gains in trend growth and jobs while making it easier to achieve sound fiscal positions.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: Europe

178. Economic Survey of France, 2003

Publication Date:: 07-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: After several years of rapid expansion, the French economy has entered into a period of below potential growth, with a negative output gap opening up. Monetary conditions have been relaxed, while fiscal policy has eased excessively, provoking the European Commission to initiate an excessive deficit procedure. As uncertainty dissipates towards the middle of this year, the economy should pick up speed, reaching a growth rhythm of around 2 per cent in 2004. Nevertheless, over the medium term, in the absence of substantial reforms the ageing of the population risks threatening economic and fiscal equilibrium. Current pension and healthcare reform initiatives and plans to redress spending over the medium term go in the right direction. However, in order to ensure medium and long-term fiscal sustainability, additional policies to slow the expansion of health and pension spending are required, while efforts to raise employment rates and potential output are needed to improve the economy's ability to finance future ageing-related expenditure. Here, programmes that offer the possibility of on-the-job training should be expanded so as to reactivate young and lowskilled workers, while reforms to early-retirement schemes and the pension system need to be continued so as to restore work incentives for older workers. Ongoing tax and labour market reforms and policies to facilitate the development of high-tech and fast growing enterprises, which should help promote investment and higher productivity growth, also need to be pursued. The opening of the capital of stateowned enterprises and their eventual privatisation, and planned improvements to governance structures should help promote growth, but revenues from sell-offs ought to be used to reduce debt. Finally, in order to better manage the totality of public expenditures, the authorities need to implement reforms that can be used to ensure that all spending organisms contribute to controlling spending. Here, it will be necessary to implement mechanisms that would improve the effectiveness of measures to control healthcare spending. Moreover, decision-makers need to be more directly confronted with the long-term consequences of their actions. Initiatives such as decentralisation and the new budget framework law should help in this regard. Pursuit of reforms along all of these lines should permit society to meet the fiscal challenge posed by population ageing, while retaining high levels of service.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: Europe and France

179. Economic Survey of Italy, 2003

Publication Date:: 06-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The traditional dynamism and flexibility of the Italian economy has faltered in recent years, in part because of the unfavourable developments in the international economy. Furthermore, structural reforms have not yet gone far enough to turn the tide. Despite supportive fiscal policies and monetary conditions, growth is sluggish, confidence is at a low ebb, inflation is above the euro-area average, and there are perceptions of a pervasive loss of competitiveness. As regards fiscal policy, room for manoeuvre has now been greatly reduced by tax cuts – desirable in themselves – and significant additional corrective measures will be required for some years to come, if medium-term targets are to be achieved and long-term fiscal sustainability is to be assured. Such corrective measures should be of a structural and permanent nature, with prime candidates being savings in public pensions and health care, and increased public sector efficiency. The pension system is very expensive, in large part because it still encourages early retirement, thus resulting in inefficient public spending and low employment rates. These perverse features need to be removed. Public health spending is not efficiently administered: recent agreements on standards and financing with regions are a step forward, and a more incisive control of costs could derive from the quarterly monitoring of spending that has already been implemented. In public administration, the retirement of large numbers of public employees creates opportunities for a more effective and less costly redeployment of human resources. Overall economic performance would be improved by policies that further strengthen competition in product markets, for example by not eroding the powers and independence of the sectoral regulators. Privatisations should be vigorously resumed and effective financial market monitoring of firms ensured. Speedier bankruptcy procedures should be introduced that give priority to efficient reallocation of resources. Together with less rigid employment protection legislation, this might encourage more small firms to expand to levels that would permit more investment in both human and R capital. Recent employment developments have been positive, and further improvements could be achieved by encouraging the social partners to allow wages of workers of all ages to more closely reflect their productivity and local conditions. Planned improvements in the social safety net and the functioning of employment services should also boost job creation by making employees willing to accept more flexible employment conditions. In the longer term, increasing the levels of output and living standards will also depend on raising the skills and qualifications of Italy's labour force. Proposed educational reforms could improve them both and thereby help to realise Italy's full economic potential.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy
Political Geography:: Italy

180. From Red Tape to Smart Tape: Administrative Simplification in OECD Countries

Publication Date:: 06-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: One of the most common complaints raised by businesses and citizens in OECD countries is the amount and complexity of government formalities and paperwork. Enterprises and citizens spend much time and devote significant resources to activities such as filling out forms, applying for permits and licences, reporting business information, notifying changes etc. In many cases, practices have become extremely complex, or irrelevant and cumbersome, generating unnecessary regulatory burdens – so-called “red tape”. The costs imposed on the economy as a whole are significant. When excessive in number and complexity, administrative regulations can impede innovation, create unnecessary barriers to trade, investment and economic efficiency, and even threaten the legitimacy of regulation and the rule of law.
Topic:: Diplomacy, Economics, International Organization, International Trade and Finance, and Political Economy

181. The OECD Guidelines for Multinational Enterprises: A Key Corporate Responsibility Instrument

Publication Date:: 06-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The OECD Guidelines for Multinational Enterprises are one of the world's foremost corporate responsibility instruments and are becoming an important international benchmark for corporate responsibility. They contain voluntary principles and standards for responsible business conduct in such areas as human rights, disclosure of information, anti-corruption, taxation, labour relations, environment, and consumer protection. They aim to promote the positive contributions multinational enterprises can make to economic, environmental and social progress.
Topic:: Economics, Environment, Human Rights, International Organization, and International Trade and Finance

182. MAgricultural Policies in OECD Countries: A Positive Reform Agenda

Publication Date:: 06-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: OECD countries have recently agreed to a positive reform agenda for agricultural policies. Central to this agenda is the need to set out clearly the objectives of agricultural policies, and to monitor the performance of alternative policies in attaining them. In most cases, the best way to achieve an objective is to target it directly. Thus, where agriculture is deemed to provide public services, such as a pleasing countryside or environmental benefits, any required support for those services could be provided directly, rather than through policies that stimulate output. Conversely, environmental degradation could be taxed or regulated at source. Where agricultural households have low incomes, there may be a case for policies that concentrate benefits among poorer households, as opposed to blanket support measures that pay more to larger (and typically wealthier) farmers and to landowners. Reform along these lines would improve the cost-effectiveness of government programmes, and would greatly reduce disruptions to international markets. At the same time, not everyone will gain from reform, at least in the short term. There may therefore be a need for temporary adjustment assistance for farm households that are negatively affected. The broader opportunities to improve economic well-being call for policies that respond explicitly to a more diverse range of societal interests.
Topic:: Agriculture, Economics, Environment, and International Trade and Finance

183. Feasible Financing Strategies for Environmentally Related Infrastructure

Publication Date:: 05-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: An important obstacle to achieving environmental goals in many countries has been the failure to adequately address the associated financial issues: the costs of achieving goals; how those costs could be minimised; and the challenge of matching costs with available resources. The need for a fresh approach has become evident as central European countries come to terms with mobilising substantial financial resources to comply with challenging EU environmental requirements, and as the countries of Eastern Europe, Caucasus and Central Asia (EECCA) struggle to maintain even the low levels of services currently delivered by environmentally-related infrastructure.
Topic:: Economics, Environment, and International Trade and Finance
Political Geography:: Europe, Central Asia, and Eastern Europe

184. Public-Private Partnerships in the Urban Water Sector

Publication Date:: 04-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The urban water sector presents difficult economic and political choices for governments. The provision of water and sanitation services has undoubtedly reduced disease and yielded other health benefits. Free or cheap access to water has also spurred a variety of other uses from maintaining lawns to washing cars. At the same time, this sector is plagued by a long history of under-pricing, and opposition to full cost pricing for ethical and social reasons. These factors have contributed to the unwillingness of many governments to acknowledge water as a finite natural resource and an economic good – a commodity that needs a market price reflecting the cost of provision and its true value to society.
Topic:: Agriculture, Economics, Government, and Industrial Policy

185. Improving Water Management: Recent OECD Experience Water management - a serious challenge for sustainable development

Publication Date:: 03-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: There is widespread concern that poor water management will be one of the major factors limiting sustainable development during the next few decades. Water shortages are common in many regions, and are exacerbated by the pollution or degradation of many water bodies. There are conflicting demands for available water resources, both between human, economic, and ecosystem needs and between regions sharing a single water basin, in some cases leading to geopolitical security threats. World population roughly doubled over the last 50 years, while water consumption worldwide quadrupled. With urban populations growing faster than rural populations, the financial pressures on urban water utilities are intensifying.
Topic:: Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

186. Disability programmes in need of reform

Publication Date:: 02-2003
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: OECD countries spend at least twice as much on disability-related programmes as they spend on unemployment. Disability benefits on average account for more than 10 percent of total social spending. In the Netherlands, Norway and Poland they reach as much as 20 percent.
Topic:: Development, Economics, Government, Human Welfare, and Non-Governmental Organization
Political Geography:: Norway, Poland, and Netherlands

187. Civil Society and the OECD - update November 2002

Publication Date:: 11-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The OECD recognises the valuable contribution that civil society can make to the public policy-making process, and attaches great importance to the Organisation's own consultation and dialogue with civil society organisations (CSOs). This continuing dialogue builds trust in public institutions and promotes public understanding of the benefits and challenges of global economic and social change.
Topic:: Development, Economics, International Trade and Finance, and Non-Governmental Organization

188. Territorial Review on Helsinki, 2002

Publication Date:: 11-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The on-going structuring of the Greater Helsinki Region (GHR) should be encouraged by the central government. Managing the growth of the Helsinki region is crucial to avoid urban sprawl and the waste of resources, especially in the long run. With priorities for the Greater Helsinki Region identified, there is room to negotiate a general agreement between the central government and municipalities of the GHR. This agreement should receive large publicity and raise a debate in Parliament as the goal is to reassess both the role and the dependence of Helsinki upon the rest of the country, i.e. how can Finland develop as a whole by making better use of the motor, Helsinki.
Topic:: Development, Economics, and International Trade and Finance

189. Measuring the Non-Observed Economy

Author:: Derek Blades and David Roberts
Publication Date:: 11-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Strictly speaking, the Gross Domestic Product (GDP) is only a measure of economic activity, but in practice it is often used to compare the relative wellbeing of countries as well as their overall economic performance. To measure the latter, users normally look at the rates of growth of GDP, while for comparing relative wellbeing the levels of GDP percapita are used. The absolute level of GDP is also used for calculating policy-relevant indicators such as the ratio of government deficit to GDP, the ratio of R expenditure to GDP and the ratio of carbon dioxide emissions to GDP.
Topic:: Economics and International Organization
Political Geography:: Russia

190. Measuring Student Knowledge and Skills: The PISA 2000 Experience

Author:: Andreas Schleicher and Claudia Tamassia
Publication Date:: 06-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: How well do school systems perform in providing young people with a solid foundation of knowledge and skills, and in preparing them for life and learning beyond school? International comparisons of the outcomes of education systems have in the past been elusive. While it has been possible to compare basic structural characteristics of educational programmes and qualifications across countries, such as their entry requirements, their labour-market destination or typical patterns of student participation (see OECD, 1999b), there are no agreed standards that would allow to compare the level of content and quality of the underlying educational activities and services. It is thus difficult to make inferences regarding the knowledge and skills individuals have actually attained from such comparisons. Moreover, knowledge and skills are acquired not just through formal education but also, and increasingly, through formal and informal learning outside regular educational programmes. However, since 1997 governments of the OECD have been working on establishing a comparative framework to assess how well their education systems meet core objectives. The result has been the OECD Programme for International Student Assessment (PISA), the most comprehensive and rigorous international effort to date to assess learning outcomes and to identify the policy levers that may help improving the performance of education systems.
Topic:: Economics and Political Economy

191. Purchasing Power Parities - Measurement and Uses

Author:: Paul Schreyer and Francette Koechlin
Publication Date:: 03-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: How does one compare economic data between countries that is expressed in units of national currency? And in particular, how should measures of production and Gross Domestic Product (GDP) be converted into a common unit? One answer to this question is to use market exchange rates. While straightforward, this turns out to be an unsatisfactory solution for many purposes – primarily because exchange rates reflect so many more influences than the direct price comparisons that are required to make volume comparisons. Purchasing Power Parities (PPPs) provide such a price comparison and this is the rationale for the work of the OECD and other international organisations in this field (see chart 1). The OECD publishes new sets of benchmark PPPs every three years, drawing on detailed international price comparisons. Every time a new set of benchmark PPPs is released, this also gives rise to a new set of international comparisons of levels of GDP and economic welfare.
Topic:: Economics and Political Economy

192. Creation of the Euro Area: Implications for Economic Statistics

Author:: Paul Schreyer
Publication Date:: 02-2002
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: A major event in early 2002 was the arrival of the euro banknotes and coins and the withdrawal of the existing twelve national currencies from circulation. The event has influenced every citizen in the euro area and is clearly a historic change. It heralds a new phase in forging an “ever closer union among the peoples of Europe”. In economic terms, however, the introduction in January 1999 of the single currency after determining the irrevocably fixed exchange rates of the national currencies with the euro was a more important event. It meant that decisions on monetary policy moved from national central banks to the Governing Council of the European Central Bank. This Statistics Brief highlights some of the consequences for economic statistics of the creation of the euro area.
Topic:: Economics and Political Economy
Political Geography:: Europe

193. Trade in Goods and Services: Statistical Trends and Measurement Challenges

Author:: Andreas Lindner, Bill Cave, Lydia Deloumeaux, and Joscelyn Magdeleine
Publication Date:: 10-2001
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: International trade statistics play a vital part in OECD's monitoring, analysis and projections of macroeconomic developments in individual economies and the world economy. In response to these needs, OECD's Secretariat manages three trade in goods and services databases of which a very large merchandise trade database.
Topic:: Economics and Political Economy

194. Economic Survey of the Netherlands, 2000

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: In its sixth year of expansion, the Dutch economy has continued to perform well, with strong real GDP growth and job creation. But some tensions have appeared, and inflation is close to the upper limit of price stability as defined by the European Central Bank. The outlook is broadly favourable as GDP growth is expected to slow only moderately: this would provide a welcome cooling-off of the economy. However, fiscal policy needs to remain particularly vigilant concerning the risk of overheating, and stand ready to tighten promptly, within the budgetary framework, if so needed. A major challenge facing the authorities is to deal with the important unfinished agenda in the structural area through speeding up the process of structural reform. The announced income tax reform is particularly necessary, not only to improve fiscal efficiency and equity, but also to redress incentives to work. This would enhance labour market policies aimed at increasing the outflow from social security schemes, and would boost the active labour force and potential output. Other necessary actions include reforming the health care system and introducing more market forces in public transport and some other former public utilities. Taking advantage of the favourable conjunctural situation, the authorities should move ahead forcefully along all these lines, thereby contributing to the continuation of strong job creation in an environment of sustainable economic growth.
Topic:: Economics
Political Geography:: Europe and Netherlands

195. Economic Survey of the Russian Federation, 2000

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The economic crisis of 1998 has victimised a number of important areas of institutional development and increased social distress among much of the population. A responsible fiscal and monetary response to the crisis, bolstered by a strengthened current account, has helped to stabilise inflation and the exchange rate, although the low level of reserves, the demands of foreign debt service, and threats to the independence of the Central Bank speak for the continued fragility of the achieved level of stability. A restructuring of foreign debt is critical for consolidating trends in the fiscal sphere. While the quick onset of a recovery in GDP in the wake of the weaker rouble is encouraging, delays in structural reforms and low administered input prices raise concern about the quality and sustainability of this growth. The restructuring and regulation of the commercial banking sector continues to pose major challenges to the Central Bank and the Russian government. Throughout a decade of transition, problems in demonetisation and fiscal federalist relations, the particular focus of this Survey, have been important underlying structural obstacles to economic reform. Although some institutional reforms have provided a foundation for a market economy, delays in addressing these and other fundamental problems have impeded efficiency and increased the comparative vulnerability of the Russian economy to external shocks. The future stability and growth of the Russian economy will require the continuation of responsible macroeconomic policies, but depends first and foremost on progress in structural reform, including tax reform, effective institutions of bankruptcy, competition, more decisive and comprehensive measures to combat the process of demonetisation, defend the rule of law, and realise fundamental reform in fiscal federalist relations.
Topic:: Economics and International Political Economy
Political Geography:: Russia

196. EMU One Year On

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The euro came into being under mixed auspices. On the one hand, convergence efforts in the run-up to monetary union, particularly in the fiscal area, had helped bring inflation and interest rates down to historically low levels. On the other hand, growth, which had only just started to recover in earnest after several disappointing years, was slowing down in the wake of a series of emerging market crises. The macroeconomic policy mix prevailing in 1999 combined monetary easing and modest fiscal consolidation. It contributed to sustain domestic demand, limiting the extent of the deceleration. With a brightening external environment, growth picked up vigorously in the second half of the year. In hindsight, the new regime's début is commendable, especially when recalling the gloomy predictions of some sceptics and taking into account that this first year has been a period of learning-by-doing for all agents. Major challenges lie ahead, however, both as regards long-run fiscal sustainability in the face of population ageing and as regards market structures. The policy tradeoffs facing European policymakers are harsher in some important ways than those confronting their counterparts across the Atlantic, because of deeply ingrained labour and product market rigidities. Those are being addressed in various ways, and tangible progress is being made. Nonetheless, reform efforts should be stepped up to raise economic performance significantly above the record of the 1990s.
Topic:: Economics
Political Geography:: Europe

197. Local Development and Job Creation

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: Globalisation has become a key force of change in all OECD countries. It is making our economies more open, bringing new opportunities, new markets and new wealth. But it also demands more rapid adjustment to change. The accomplishment of strategic restructuring is often required, so that workers are not displaced or excluded from the labour market and so that no localities are left to lag behind or decline. In the new economic environment, policy-makers must help build dynamic and flexible regions and cities. They must assist the transition from individual closed local economic systems to a new, open global system. To do this, it is important to “think globally and act locally”.
Topic:: Development, Economics, Globalization, and Government

198. Economic Survey of Germany, 1999

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The new government has set itself the ambitious tasks of lowering unemployment, modernising the economy and the social system, and securing the long term viability of the budget and the health and pension systems. Ecological goals have been given equal prominence in order to ensure the environmental sustainability of economic development. In some fields there has been progress. However, the fiscal package needs to be fully implemented to put public finances on a sustainable path and to create a tax regime that is more business friendly. These policies should be underpinned by structural reforms that strengthen future growth prospects. Such policies can benefit both macroeconomic performance and future fiscal outcomes. While short-term growth prospects are already improving, unemployment remains a major problem. With respect to its strategy for reducing unemployment, the government is seeking to obtain consensus, inter-alia on an employmentfriendly wage policy, via round-table talks with the social partners. It is important that a consistent set of policy instruments emerge that establish clear links between policies and ultimate policy goals. For Germany to attain the employment, growth and environmental aims commensurate with its key position in the European economy, requires not only favourable macroeconomic conditions, including aggregate wage developments, but a policy emphasis which more effectively enhances labour-market flexibility, as well as structural reforms that strengthen individual initiative, economic choice and the role of competition. Since structural and macroeconomic policies tend to have synergies which make them mutually reinforcing, achieving a more flexible and dynamic use of resources will help to assure progress towards the country's social, budgetary, environmental and economic goals.
Topic:: Economics
Political Geography:: Europe and Germany

199. Economic Survey of Iceland, 1999

Publication Date:: 12-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The Icelandic economy has expanded rapidly over the past five years, bringing output to well above its potential. Clear signs of overheating have emerged, with unemployment below 2 per cent, inflation picking up and a large current external deficit. These developments are projected to continue, raising the risks of a wage-price spiral and financial instability. To guard against such risks, a significant tightening of monetary policy is required, with less priority attached to the exchange rate as a target for policy. This should be complemented by a medium-term fiscal discipline aiming at achieving a structural budget surplus. Such a course would help cope with long-term care spending that will rise with ageing. On the other hand, except for government employees, pensions should not constitute a burden for public finances, as, for the main, they will be provided by the private sector. To enhance future growth prospects, it will be important to maintain and extend the fishing quota regime in the face of legal threats and to increase competitive forces, especially in the telecommunications industry.
Topic:: Economics
Political Geography:: Europe and Iceland

200. Environmental Trends in Transition Economies

Publication Date:: 10-1999
Content Type:: Policy Brief
Institution:: The Organisation for Economic Co-operation and Development
Abstract:: The collapse of communism in Central and Eastern Europe and the subsequent disintegration of the Soviet Union brought the region's serious environmental problems to the attention of the international community. Although the countries in this vast area of the world are remarkably diverse, central economic planning had created a common pattern of environmental problems. Notable among these problems were levels of industrial pollution that, in many places, threatened human health; widespread land and water degradation (particularly in the former Soviet Union); and the persistent neglect of nuclear safety and nuclear waste management.
Topic:: Economics, Emerging Markets, and Environment
Political Geography:: Eastern Europe and Soviet Union

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COLUMBIA UNIVERSITY PRESS