“Globalisation, propelled by trade and investment liberalisation, and rapid technological change, has delivered prosperity and reduced poverty for millions of people in recent decades. We have learned, however, that reaping the full benefits of globalisation requires many elements, including good public and corporate governance; policies that promote structural adjustment and social cohesion; greater access to education; efficient financial markets; and sound policies for research, innovation and development. Of course, policies are critical, but implementation is too often undermined by domestic political considerations.

“Nothing exists until it is measured”. This keen observation by the Danish physicist and Nobel laureate, Niels Bohr, has become something of a leitmotiv in the statistics world, but it bears some scrutiny.

Just a few days ago, an article appeared in a major Canadian newspaper deploring the exodus of qualified doctors and nurses from African countries struggling to contain disease, especially AIDS. These highly skilled professionals are being attracted by opportunities in more developed countries, but while they may look forward to better lives, the communities they leave suffer an important loss.

Demography and climate change: as I read the literature and consult the experts, I am increasingly convinced that many of this century’s important challenges, especially for our children and grandchildren, will flow from these two phenomena. Let me sketch some scenarios and questions with respect to each.

This is the year of development! The Monterrey Summit on Financing for Development, the OECD Ministerial starting 15 May, the African Initiative of the G8 Summit and the World Summit on Sustainable Development in Johannesburg: all are largely focused on poverty reduction and effective development assistance. This 10-point strategy could help:

Over several months I have participated in many discussions with experts from all over the world on the issue of the new economy. The question usually raised: is there a new economy? The consensus answer seems to be “perhaps”. There may be an element of media hype about it all, but there is also substance behind the headlines. As OECD chief economist, Ignazio Visco, points out in this special edition of the OECD Observer, trends are finally emerging in the economic data that the new economy might help to explain, especially in the area of productivity.

The economic environment is changing rapidly. Globalisation is being driven by international trade and investment which, in turn, are spurred on by the borderless world produced by swift advances in communications and transport technologies. The necessary companions are market liberalisation – without which the current expansion of trade and investment would slow dramatically – and new forms of governance to referee the changing rules of the game and ensure effective implementation of public policy.

Fundamental questions about the respective roles of the state and the market lie at the heart of the current debate about regulatory reform. Governments are grappling with a double challenge: they have to reduce obstacles to the dynamic market forces that drive efficiency and innovation in an increasingly competitive, globalising economy; and they have to find more efficient ways to protect and promote important public-policy goals. Regulatory reform helps them deal with both.