Has the crisis affected remittances from migrants abroad? One survey has found that migrants from Latin America based in the US are still sending money home even if that means cutting expenses, taking second jobs, working more hours or, if they have lost their jobs, dipping into their savings.

Ireland was the fastest growing OECD economy since the mid-1990s. It is now experiencing one of its most severe recessions. What explains this turnaround? How will the Irish economy recover?

Governments in Asian countries have been responding to the global crisis with stronger social policies. The economy should benefit.

The United States spent 16% of its national income (GDP) on health in 2007. This is by far the highest share in the OECD and more than seven percentage points higher than the average of 8.9% in OECD countries. Even France, Switzerland and Germany, the countries which, apart from the United States, spend the greatest proportion of national income on health, spent over 5 percentage points of GDP less: respectively 11.0%, 10.8% and 10.4% of their GDP.

More active education and employment policies, particularly targeted at minority groups, are needed to bolster its economic performance and bridge deep divisions within its society.

As the financial storm recedes the full cost of the damage is being assessed. According to Financial Market Trends, from the start of the crisis to October 2009 governments and central banks in the US and Europe had provided over $11 trillion in support to banks and other financial firms, made up of capital injections, asset purchases, debt guarantees and facilities, and so on. This total does not take account of other wider social and economic costs incurred by way of losses in business, jobs and other fallout from the crisis. Still, as a Dow Jones journalist pointed out in seeing the figures, it amounts to a contribution of over $1,600 for every person on the planet. The question is: are policymakers doing enough to tackle the root of the problem and prevent the worst crisis in 50 years from happening again?

As regulators and policymakers continue to examine new rules for the financial services, stock markets are booming and bank bonuses are being paid out anew. A happy new year, or should we be worried that, without corrective action, another financial crisis could strike in the months or years ahead?

An "education lighthouse for the way out of the crisis" was recently launched in the form of a new OECD web community dedicated to guiding education through the economic crisis. To date, the educationtoday collaborative website features nearly 200 content items from OECD experts and external analysts and is available to anyone who registers via myOECD at www.oecd.org.

Outlook brightens; Progressive measures; Soundbites; Warning for EU; Protectionism warning; G20; Tax notes; Economy; Plus ça change

Could today's jobs crisis end up scarring the hopes of an entire generation? Even in the best of times, many young people have a hard time getting a foothold in the labour market, with youth unemployment often two to three times higher than for adults. In recessions, finding work gets tougher still. Moreover, many of those young people who have work are on short-term contracts and commonly find themselves first in line when it comes to lay offs-some 35% of workers aged 15-24 in the OECD area held temporary contracts in 2008. In this recession, there is extra cause for concern.

This year's OECD Ministerial Council Meeting, the highpoint of the organisation's calendar, took place amid the most severe financial and economic crisis in decades. 

A three-pronged grain reserve system could protect poor countries from volatile food prices and shocks, and help respond to food emergencies.

By sector-
International trade has declined steeply during the crisis, though how has the fall been reflected in different sectors and countries? Take the US, Germany and Japan, the three largest OECD traders-OECD countries account for roughly 60% of world trade. As shown in the top graph for total trade (which is the sum of imports and exports, rather than the difference, which is the trade balance as shown on page 5), machinery and transport equipment have broadly speaking been the main culprits, falling by over 11% in the US, 14% in Germany and 15% in Japan, comparing the second quarter 2009 with a year earlier. Lower energy prices have also contributed to fewer imports. Trade in fuel and lubricants fell by nearly 10% in the US and Japan, though exports by just over 3% in Germany. A closer look shows that fuel and lubricant imports in the US and Japan plummeted, by 13.6% and 18.1% respectively. Trade in manufactures and chemicals were not affected quite as badly, though it fell particularly steeply in Germany, by 6% and 3.6% respectively, year-on-year.

On 7 September 2009, a report from the United Nations conference on Trade and Development (UNCTAD) blamed the "dominance of the dollar" for playing an important role in the recent build-up of global imbalances, particularly in trade and the current account, which helped lead to today's global economic crisis.

As actress Bette Davis once said, "getting old is not for sissies". Just when you expect to be reaping the rewards of a life of hard work, there is a surprisingly good chance that you will, instead, be struggling just to get by. In the mid-2000s, an average of 13.3% of people over 65 were living in poverty in OECD countries. An astonishing 45% of Koreans of that age were income poor, as were more than one out of every five older persons in Australia, Greece, Ireland, Japan, Mexico and the US. In only eight countries was the income poverty rate 5% or less among their oldest citizens.

When the OECD was mandated to develop a Green Growth Strategy this June, ministers specifically referred to the "green jobs" that such a strategy would support. But what exactly are "green jobs"?

Jobs crisis or no, it's best to invest in education. As this year's edition of Education at a Glance shows, men and women who have university-level degrees earn far more over the course of a lifetime than those who don't. In fact, men with higher education in Italy and the US can earn over US$300,000 more than their counterparts who do not have a university degree. Rewards tend to be lower for women, with Korea and Spain the exceptions.

In most OECD countries, unemployment protection systems don't provide adequate social security during a severe economic crisis and periods of high and persisting unemployment. Not only that, benefits can even run out within much less than a year and often before unemployed workers can find new jobs. Also, income support in many countries barely ever covers more than half a worker's previous salary, and sometimes much less.

Thanks to prompt and significant government responses to the crisis, many economies are experiencing initial signs of recovery. However, there is still much uncertainty concerning what lies ahead and unemployment is still rising in many countries. The OECD unemployment rate reached a post-war high of 8.5% in July 2009, with an OECD estimated 15 million extra out of work since the start of the crisis. In contrast, unemployment across the OECD was at a 25-year low of 5.6% in 2007.

One of the most widely heard accusations against immigrants is that they take jobs from locals, usually-it's claimed-because they are willing to work for less. How true are such claims, and do immigrants really harm the job prospects of natives?

As G20 leaders and OECD employment ministers turn their focus to solving the unemployment crisis that has gripped the world economy, they should spare more than just a thought for the particular plight of developing countries. Global unemployment has increased sharply, by 39 million workers, to judge by ILO central projections for 2009. But particularly for developing countries, unemployment is just one dimension of the challenge. Developing countries are also characterised by large numbers of informal workers who have no social or legal protection, and extremely low pay. They, their families and the wider communities to which they belong are exposed to all sorts of health and safety risks too.

With the crisis and sharp rise in unemployment, you might think anyone with a job these days should consider themselves lucky. Well, that depends.

Unemployment is rising to unprecedented high levels. There are several good policies governments can deploy to tackle it, but there are risks to avoid too.

"Being unemployed is frustrating, demeaning and, at this point, frightening." Anyone who has any doubt about the devastating effects unemployment can have will learn a lot from statements such as this one, captured in a recent survey undertaken by the John. J. Heldrich Center for Workforce Development at Rutgers University in the US.

Respond to the needs of the newly unemployed while continuing to engage with people who are disadvantaged within the labour market: this is the major challenge facing employment ministers today.

Ministers responsible for employment from around the world gathered at the OECD on 28-29 September to discuss the jobs crisis. In our eighth OECD Observer ministers' roundtable, we ask six representatives, from Canada (co-Chair), Italy (co-Chair), Sweden (vice-Chair), France, New Zealand, and Chile, which is a candidate for OECD accession: What new policy actions are you taking to improve the jobs situation in your country?

International trade fell off the charts in the fourth quarter of 2008 and showed only a modest easing in the rate of decline in the early months of 2009. Well-regulated open trade is essential for economic recovery and development, yet in times of crisis, protectionism may appear an attractive solution. It should be resisted.

A jolt of innovation can be a powerful antidote to recession. But innovation risks being hit hard by the economic crisis as the capital to finance research and develop new products grows scarce. The economic fallout could be serious, since innovation is a key driver of growth.

Banks and investment companies are more than mere financial firms. They hold and manage assets, such as retirement income, on behalf of others, whether individuals, companies or governments. In short, they have a fiduciary role to fulfil, based on trust. So why have the beneficiaries not really benefitted?

The world economy has hit a wall over the past 12-18 months. This was the opening message from INSEAD's Soumitra Dutta in a panel debate at OECD Forum 2009 to discuss the OECD's latest economic forecasts launched moments earlier (OECD Economic Outlook No 85, June 2009).*

Oil prices rebounded but are unlikely to return to pre-crisis peak levels.

OECD activity now looks to be approaching its nadir, following the deepest decline in post-war history.

To be useful in helping countries to move out of the crisis, it is necessary for the OECD to look at its own history as an organisation and draw the right lessons for the future.

The main victims of severe economic downturns tend to be workers and their families, so governments are rightly stepping in to help job losers weather the storm. But while the severity of the unfolding jobs crisis may require extraordinary policy responses, how can governments avoid the wrong ones?

Productivity had been plummeting in OECD economies for a few years before the advent of the financial crisis.

Africa did not cause the economic crisis, but will suffer from it. What are the prospects?

Korea was one of the OECD countries most severely affected by the global crisis, even though its financial sector had been relatively healthy.

Your article on Islamic banking ("Islamic banking: an asset of promise?" No 272 April 2009) suggests that financial temperance is still possible. The ratio of assets leveraged against capital cited in the article, 20 to 1 in US banks, 30 to 1 in Europe, yet only 10 to 1 in Islamic banks reveals just how much the financial system has made greed systemic.

Angel Gurría, Secretary-General of the OECD

When leaders of government, international organisations and civil society from around the world gather for critical discussions at the OECD summit meetings in Paris this June, one question will dominate the agenda: Is enough being done to restore confidence and long-term growth, and break the grip of the worst global crisis of our times?

In February 2009, Singapore and Hong Kong, China, undertook to bring tax transparency up to international standards and relax bank secrecy laws for tax purposes. Hot on the heels of these announcements were others from the Cayman Islands, Jersey, Andorra and Liechtenstein, and more recently we have seen Austria, Belgium, Luxembourg and Switzerland signing up to the OECD standard on exchange of information.

In 2008 a US senate subcommittee issued a report alleging that banks located in tax havens cost US taxpayers some $100 billion a year in lost revenue. That is a considerable leakage, especially in light of US laws, institutions and other mechanisms to help control tax evasion.

Though OECD work on making international tax fairer began over 50 years ago, it was not until 1998 and a report on harmful tax competition that the OECD stepped up its work against tax evasion, tax havens and abuse.

The International Energy Agency (IEA) is 35 years old in 2009. A sister organisation of the OECD, it offers a timely reminder that a co-ordinated public response to a crisis can succeed.

Record fall in GDP; Economy; Gender learning; Other news; Soundbites; Plus ça change...

The financial crisis might not have been caused by taxation, but it nonetheless raises concerns about evasion, compliance and transparency in financial markets. The OECD Observer asked South Africa's minister of finance, Pravin Gordhan, who chairs the OECD's Forum on Tax Administration, to explain.

"The right to privacy will remain a cornerstone of our legal system"

If the general consensus is correct-that the roots of global economic crisis are in the financial system-then it follows that to resolve the crisis the global financial governance and financial market regulation must be fixed.

If there is one major lesson to draw from the financial crisis, it is that corporate governance matters.

The progress on offshore tax centres at the G20 in London in April has fuelled international momentum to develop common principles and standards on integrity, transparency and propriety for a whole range of global challenges, including investment, the environment, labour and health.

With unemployment rising, could the public sector become a source of job growth in the OECD area?

Crisis bites deeper  ; Economy; Jobs opportunity ; Green teens ?; Tax information-exchange agreements; Freedom of Investment initiative; Fighting Bid Rigging in Public Procurement ; Development aid; Soundbites; Plus ça change...

Crisis-weary bankers, financial regulators and investors could look to Islamic banking for inspiration.

The financial and economic crisis has already put millions of people out of work in the OECD area alone, and the unemployment figures are going to get far worse. What can governments do to ease the suffering? 

The world economy remains gripped in the deepest and most widespread economic crisis in modern times. The latest update of the OECD Economic Outlook expects GDP to plummet by an average 4.3% in the OECD area in 2009, and world economic activity to shrink by 2.7%.

The global economic crisis is affecting families and communities across the planet. With regions bearing the brunt of the crisis, affecting businesses, jobs and people generally, regional policies are very much part of the solution.

The financial crisis and economic downturn are likely to put upward pressure on government debt. The trouble is, according to OECD in Figures 2008, public debt (general government debt, which includes central and local government) had already risen quite sharply in the OECD as a whole since 1987, from 59% of GDP to 75% in 2007. Two decades ago, Belgium had the highest public debt, but today that position is filled by Japan, whose debt rose from below 60% to 170% of GDP. Italy’s debt has also shot above 100% of GDP in the past 20 years.

The crisis sweeping the world’s economy is reflected in the output results for the third quarter of 2008, when GDP of the OECD area fell by 0.1% compared with the previous quarter. This was the first decline since 2001.

The pain and anguish of the current global economic crisis were caused by a series of massive failures in the heart of the world’s most developed countries. We are in our current fix because of an excess of financial innovation, driven by ever-increasing thirst for short-term profit.

Can 2009 bring a ray of light to lift the gloom and end the severest financial and economic crisis in decades?

The OECD Economic Outlook issued end-2008 sees some 21 of 30 member countries already in or heading into a recession that could last a year. Business investment will contract by over 5%, and unemployment could rise by at least 8 million by 2010. This social crisis is affecting families and communities across the planet, with emerging and developing economies suffering too.

The OECD and IMF forecasts for 2009 suggest that for the first time since the 1930s GDP will fall in the industrialised economies that make up the OECD. Yet even these forecasts are based on relatively optimistic assumptions that the financial markets begin to stabilise in the months ahead and that there are not other major “shoes to drop” in terms of negative financial shocks.

The economic crisis has hit the entire world economy, with governments stepping in to rescue financial systems and kick-start economic growth. This adds up to a triumph for government fiscal policy, though fiscal policy must be used audaciously.

Did you know that, even before the current recession and despite the economic boom of recent years, the gap between rich and poor and the number of people below the poverty line have grown over the past two decades?

The credit crunch could usher in a new paradigm of stewardship for pension fund trustees and the dawn of a more accountable capitalism.

OECD will work with governments in a two-strand approach to develop policies for tighter financial market oversight and risk management, and for economic recovery, Secretary-General Angel Gurría has announced. The plan will form part of a comprehensive contribution to the G20’s Action Plan agreed in mid-November, he said.

The financial crisis sweeping world markets is the worst since the Great Depression. While the crisis is biting into the real economy, hard lessons are being learned. How should policymakers move forward, particularly as room for manoeuvre is being squeezed?

What are the main impacts of the financial crisis on the real economy, and what lessons might we draw from the crisis for the future? The next OECD Economic Outlook due on 25 November will provide some answers. We asked the new OECD Chief Economist Klaus Schmidt-Hebbel for some early insights.

Deposit insurance limits

Amid the worst current financial crisis since the 1930s, some government leaders have pledged to protect savers’ deposits and others are considering this option. Already most OECD countries have explicit deposit insurance schemes for savings up to certain limits. In a number of countries these have now been raised temporarily. Until the latest statements suggesting unlimited guarantees in some countries, legal coverage was highest in Norway, France, Italy and Mexico (see graph). Click here for full story.

Financial market turmoil is at extreme levels and threatens economic growth in the OECD area and beyond. A near-term recession is likely in some countries, though the ultimate economic impact will depend on the ability of policymakers to soften the “credit crunch” now unfolding through the balance sheets of financial institutions.