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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