The supply of medical staff also reflects global movements of labour. Indeed, there were some 1.3 million foreign born health professionals–nurses, doctors, pharmacists, dentists, etc.–living in OECD countries in 2000, according to a special report in the latest International Migration Outlook.

Anyone shopping in fruit markets this summer will agree that judging the quality of agricultural products is a serious business. After all, customers want their apples to look and taste like apples. But ever wonder how those standards are ensured from the farm to the marketplace? Standards play a vital role in growing, pricing, trading, shipping and public safety. They serve the global market, simplify import and export procedures, and increase transparency, confidence and traceability.

Offshoring and Employment: Trends and Impacts.

Remember The Travels of the T-Shirt in the Global Economy? As we reported in these pages, this award-winning book tracked the circuitous making and marketing of a T-shirt, from the cotton fields of Texas and a factory in China to a used-clothes bazaar in Africa (“Global yarn”, in No. 251, September 2005, search www.oecdobserver.org).

Nuclear energy is attracting renewed public support. It is a virtually carbon-free energy source and can help produce a sizeable percentage of electricity needs in many countries. But while more people are prepared to accept nuclear energy, loving it is not easy, mainly because of the problem of nuclear waste. Treating it, burying it and generally making it safer are ongoing challenges. Can waste be minimised in the first place?

Are you confused about the state of your country and where it is going? Do you sometimes feel overwhelmed by the plethora of information–often contradictory–about the health of your economy, society or the environment? Governments should be judged on the effectiveness of their policies and projects, but against which benchmarks? And how can citizens take part in honest democratic debate about policy alternatives if they do not know what is really going on in their own country or region?

Whole communities in the developing world are being crippled by neglected infectious diseases. Changing the way intellectual property rights are managed is vital for attracting the pharmaceutical investment needed to tackle them. Every eight months a new infectious disease appears, joining the roster of those that already affect one in six people on earth. The vast majority of those infected live in developing nations.

South Africa joins Anti-Bribery Convention; Economy; Rebalancing confirmed; Safer pensions; Investment trends; Greener export credits; Tax talks; High in fibre; China's environment; Lifting French spirits; European aid scrutinised; Biofuels lift farm prices-; -and sow uncertainty; Nuclear energy rises; Plus ça change

Announcements about enlarging the OECD’s membership and strengthening co-operation with other countries took much of the limelight at this year’s annual ministerial meeting. Below is an extract on enlargement from the Chair’s summary, followed by some selected highlights of the meeting.

Globalisation is exerting pressure on the environment, but it may also provide solutions. Could green be turned to gold? Climate change, melting polar ice, rising sea-levels, unpredictable weather patterns, drought, rampant urbanisation, demographic explosions: the list goes on. Many people blame globalisation for these ills, and it is true to say that increased economic pressures inevitably leave a bigger footprint on our planet.

Alex King, a much-admired director of the OECD, passed away on 28 February 2007. He was 98. Now that the OECD has gone “global”, it is worth remembering that Alex King was also the founder, in cooperation with Aurelio Peccei, of the Club of Rome, which first put the spotlight on the crisis of globalisation (notably in a report published in 1972 entitled The Limits to Growth*).

Are you a left-brain or a right-brain person? Do you learn while you sleep? Do men and boys have different brains than women and girls? Popular misconceptions such as these pepper ads, magazine covers and conversations. What is fiction and what is fact, and where did they originate? Understanding the Brain: The Birth of a Learning Science, the second and final report from a project launched by the OECD in 1999, challenges these neuromyths, and explores how brain science can be applied to learning science and the classroom.

Concerns about the supply and quality of teachers are generating new policies in many OECD countries. Here’s why.

The world economy seems to have entered a rebalancing phase, with Europe in particular showing signs of firmer growth just as the US economy is decelerating. This would seem to make it as good a time for reform as ever, and several large and small OECD countries are in fact moving ahead. While all countries should continually adjust to new global circumstances, for some the need to reform is particularly pressing. The road ahead will be challenging, but there may be lessons for policymakers to help them smooth over some of the bumps.

Remember manufacturing? For some policymakers with an eye on the future, it may be easy to forget. After all, manufacturing is on the decline in the OECD area in terms of GDP and employment. But according to “The Changing Nature of Manufacturing in OECD Economies”, an OECD working paper, there are many reasons to take manufacturing seriously, not least because of its role in technological innovation.

Minimum wages are hotly debated as ways of improving equity and boosting the wages of lower skilled workers. All OECD countries apply some kind of wage floor. Do they achieve their goals?

“Innovation: Advancing the OECD Agenda for Growth and Equity”: that is the theme of this year’s annual Ministerial Council on 15-16 May, and it reflects what many governments believe are clear priorities. (Chair's conclusions now available!)

In OECD countries coal has a blackened image. Yet, it remains a key component of any energy mix. Innovation might help make that future brighter.

Transport is the main cause of carbon dioxide emissions, ahead of power generation or industry. While aviation accounts for 14% of transport-based CO2 emissions in the EU, roads have a larger effect. In OECD countries, road transport accounts for over 80% of all transport-related energy consumption, for most of the accidents and the majority of air pollutant emissions, noise and habitat degradation.

Tax inspectors may be an eagle-eyed lot, but in today’s global, technology-sophisticated world, their job has become extra challenging. The OECD’s 1996 Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials is designed to discourage international corruption by disallowing bribes that take the form of tax-deductible expenses, for instance.

Traditionally a male bastion in many countries, the medical profession has seen the proportion of female doctors steadily increasing, accounting now for an average of 38% of all doctors in OECD countries, up from 24% a quarter of a century ago.

Driving a car is a common, everyday activity for adults of all ages. Yet, every year in OECD countries, road crashes kill about 25,000 young people between the ages of 15-24. Can anything be done to stop this waste?

The performance of health care systems is under scrutiny. The Health Care Quality Indicator Project can help identify what works and what does not. And that will help policy decisions too.

Every eight seconds, one student in the OECD area leaves school without completing an upper secondary qualification. That means a gloomy outlook for his or her future: on average, 26% of adults without upper secondary qualifications earn half or less than half the national median earnings. The trouble is, the penalties for not obtaining strong baseline qualifications continue to rise year after year.

Despite the dot.com crash of 2001, growth in broadband has been strong. Indeed, the number of broadband Internet connections in OECD countries has risen from an average of 2.9 subscribers per 100 inhabitants in 2001 to 13.6 per 100 in December 2005.

Matching jobs and qualifications is never easy. Some people inevitably work in jobs for which they are overqualified, but the rate of overqualification is higher among foreign-born populations.

Foreign direct investment (FDI) into OECD countries jumped by 27% to reach US$622 billion in 2005, up from $491 billion in 2004 and $465 billion in 2003, according to the latest estimates from the OECD. These are the highest inflows since 2001. The near-term outlook for FDI remains strong.

Are house prices peaking? They have certainly risen strongly, even in real terms – that is, when adjusted for inflation – since the mid-1990s in most OECD countries and, as the latest OECD Economic Outlook reports, their current upswing is the longest of its kind since the 1970s.

Globalisation produces winners and losers, including in employment. But while the job threat is real, it is manageable as long as the right policies are in place.

Innovative design, use and management of physical infrastructure can contribute to the quality of education. This lesson is not all that new. For a decade now, the OECD Programme on Educational Building (PEB), has led an international jury in selecting a number of institutions that exemplify considerations of flexibility, community needs, sustainability, safety and security, and financing.

The fisheries sector in OECD countries receives around $6.4 billion a year in transfers from governments. Around 38% of the transfers are provided for the management, research and enforcement of fisheries while 35% is directed to the provision of fisheries infrastructure, from harbour and landing facilities, to navigation services, and search and rescue support.

Chair’s summary*, OECD Council at Ministerial Level, Paris, 23-24 May 2006:

“Against the backdrop of a broadening global expansion, ministers identified and discussed two sets of key policy challenges. First they underscored how crucial it is to ensure that momentum be sustained where the upswing is already strong, and that those economies that are lagging in the cycle catch up.

Higher education cannot escape major and sometimes difficult change, and OECD governments were determined to lead those changes, rather than be driven by them. This was how Marietta Giannakou, minister of national education and religious affairs of Greece, wrapped up her conclusions as chair of the 2006 Education Ministers’ Meeting.

It is a great honour to have been given the mandate to lead the OECD following Donald Johnston’s great legacy. We are facing a number of pressing challenges, of which I will mention just a few. Starting with the global economy, I would note that although the economic outlook for this and next year is rather positive, there is no room for complacency.

Are older workers denied choice about when and how they retire? Certainly, the average number of years that workers across the OECD can expect to spend in retirement has risen sharply, from less than 11 years in 1970 to just under 18 years in 2004 for men, and from less than 14 years to just under 23 years for women.

Ireland, which has been the OECD’s fastest growing economy in recent years, also produces the most municipal waste per capita in the OECD area, at some 760 kilograms per head in 2003, according to the latest OECD Factbook.

For growth and prosperity, companies must focus on high-quality products, customer service and continuous innovation. That means looking beyond shareholders and addressing the needs of ordinary workers, not least in OECD countries.

Higher education is attracting unprecedented public attention across the OECD. In Germany a competition to create universities of excellence is fuelling debate; in France discussions continue about struggling mainstream universities versus more well-endowed grandes écoles; in the UK there is a debate about education as a public good versus faculties as market-oriented enterprises; and in the US public focus continues on accessibility, competition and costs.

A decade ago, when the OECD Jobs Strategy was first launched, unemployment was high and persistent in several OECD countries. Since then, a number of them have made significant progress to reduce joblessness. At the same time, the challenges for labour market policies have become broader, with greater recognition of the importance of high employment and better working conditions for good living standards.

Though the dot.com crash of 2001 burst the e-commerce bubble, recent figures show that broadband has remained dynamic. Indeed, growth in the number of broadband Internet connections in OECD countries has risen from an average of 2.9 in 2001 to 13.6 subscribers per 100 inhabitants in December 2005.

The public cost of health and long-term care in OECD countries will double by 2050 if current trends continue, a new OECD report finds. The rising medical demands of ageing and wealthier populations could send average health costs in the OECD area up from 6.7% of GDP to 12.8%. Even if governments manage to contain that rise, spending would still reach the equivalent of around 10% of GDP by the middle of the century.

Home ownership, rather than rented accommodation, has become the norm in most OECD countries over the last 20 years. In fact, Germany is the only OECD country where the owner occupation rate is well below 50% of the total.

If secondary education died tomorrow, what would its epitaph be? This question was used as a springboard by school administrators in the Netherlands to rise above the distraction of today’s pressing needs and spur innovative ideas on what tomorrow’s schools should look like. Schooling for Tomorrow: Think Scenarios, Rethink Education points out that today’s educational thinking profoundly influences the lives of individuals and the health of whole communities for decades to come, yet much decision-making tends to deal with immediate issues.

Work may drive growth, but for most people, more free time contributes to well-being, as long as it is not accompanied by lower income. Still, one often-heard remark about the gap in economic performance between OECD countries is that US workers may earn more money but they work longer hours, whereas Europeans prefer more leisure to more work, or indeed, more money, and so are better off.

Restoring balance is very much at the heart of this year’s agenda at the OECD Forum on 22-23 May. Economic imbalances; the contribution of financial markets; technology and innovation; managing global challenges such as natural disasters and pandemics; managing the successful integration of China and India into the world economy; creating jobs in the 21st century; and how to ensure effective and ethical trade and investment, are just some of the themes.

“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.

The short-term economic outlook; how to ensure economic stability and improve economic performance; how to implement economic reforms for growth and employment; the follow-up to last December’s WTO ministerial meeting in Hong Kong-China; and the future strategic direction of the OECD; these are the main topics for discussion at this year’s OECD Ministerial Council Meeting (MCM) in Paris on 23-24 May 2006. “Delivering prosperity” will be the overarching theme of the meeting, which is the summit in the OECD calendar. Kostas Karamanlis, prime minister of Greece (see editorial in this edition), will chair the discussions which will be held at the French Ministry of Foreign Affairs, Quai d’Orsay.

At the end of the 2006 Ministerial Council Meeting (MCM), Donald Johnston will complete his second 5-year term as the fourth secretary-general of the OECD and will formally hand over office to Angel Gurría, who was nominated by OECD member countries last November. A former lawyer and minister in the Canadian government, Mr Johnston took over the reins from Jean-Claude Paye in 1996. We asked the outgoing secretary-general for his reflections on what has proved to be a period of great change in the global economy.

The OECD Ministerial Council Meeting and the Forum are major opportunities for member countries and other emerging economies to exchange views on global economic issues, share best practices and discuss policy priorities. Our central theme this year is “Delivering prosperity” and our focus is on the wide-ranging reforms required to make our world a safe and thriving place for its citizens. Chair's summary, now available.

Is there a connection between health spending and life expectancy? Not necessarily. As the latest edition of the OECD in Figures 2005 points out, the Japanese have the highest life expectancy in the OECD area, but their health spending, at nearly 8% of GDP, is far from being the highest. The US on the other hand has the highest health spending at some 15%, yet it clocks in at just 22nd when it comes to life expectancy–Americans can nevertheless expect to live past 77. The lowest spender is Korea (5.6% of GDP), with a life expectancy also of 77 years.

Construction of Finland’s first nuclear reactor in three decades got under way in September 2005. When completed, the French-built third generation reactor will be the first in western Europe since 1991. Is this the beginning of a new expansion phase?

All digital highways led to Rome last January, as hundreds of government officials, policy experts and companies descended on the Italian capital for a conference on the future of the digital economy. Jointly hosted by the OECD and the Italian government, the meeting marked a turning point in the digital content debate as several long-simmering concerns emerged as mainstream issues.

Biotechnology and genetics research have been the subject of extensive investment by both the public and private sectors, with a growing impact on healthcare. Advances in medical genetics promise faster, better, diagnosis as well as a new generation of targeted therapies.

On 4 April OECD development and environment ministers meet in Paris. The aim is to push for more progress on the many areas that link the environment and development.

Access to financing continues to be a significant impediment to the creation, survival and growth of small and mediumsized enterprises (SMEs). Although the role of smaller firms in innovation and employment cannot be underestimated, from a bank’s point of view SMEs tend to have a high risk profile, especially innovative ones.

A widely held view is that developed countries are water-abundant and farmers need pay little attention to issues like water management or quality. If only that image were true. Rising production of thirsty crops and livestock have brought severe strains on water resources everywhere, including the richest countries.

Planning next year’s studies? Why not consider reading E-Learning in Tertiary Education: Where Do We Stand? This latest report from the OECD Centre for Educational Research and Innovation (CERI) says that in addition to lifting constraints of time and place, electronic learning can be more personalised, flexible and even less expensive than conventional learning places.

Can technology bring better government? Anyone who has filled a tax return online would probably answer yes. But is that enough? The answer is, probably not. A new report, E-Government for Better Government, the second phase of an OECD project launched in 2001, suggests that while in principle, e-government instruments can improve efficiency, increase citizen awareness and help promote new initiatives, it is not enough just to open a website. The basic key challenges remain the same in the real world as in the virtual one: how to be more agile, responsive and accountable.

Many governments have made deliberate efforts to cut back on their civil service employment in recent years, both to contain public expenditure and also as part of wider regulatory reforms. Public servant jobs in central, regional and local administrations have decreased, sometimes sharply, in several countries, but have risen markedly in a few others, including Ireland, the Netherlands and Spain. Staffing has risen at regional or local levels in some countries, such as Japan and the US.

Who owes what, how and where? Understanding the international array of tax treaties can be a headache for businesses everywhere, not to mention tax authorities. There are 2,500 such treaties in force around the world, covering everything from income tax to pension plan liabilities. No one, be they companies or governments or individuals, likes to be short-changed, which makes global tax such a sensitive issue.

“Good governance is the basis of all OECD activities, which is hardly surprising given that it is essential for all economic and social progress.” These remarks by Secretary-General Donald J. Johnston set the tone for a ministerial meeting on Strengthening Trust in Government, hosted by the Netherlands in Rotterdam on 28 November.

Could it be that the revolution in communications technology is reaffirming the pre-eminence of one of civilisation’s oldest tools: the written word? Matters that barely a decade ago would have been dealt with orally by telephone, for instance, now transit via e-mail or text messages.

Anyone driving across different countries will be struck by the different qualities of national road networks. Yet, even the smoothest asphalt requires frequent maintenance, often at great cost in terms of money, traffic disruptions and so on.

Suicide rates have fallen in most OECD countries, but have risen sharply in others. The highest rates occur in Hungary, Finland, Japan and Korea, with the lowest in Spain, UK, Italy and Greece. Some 130,000 deaths occurred in OECD countries in 2002. Suicides are up to four times greater among men than women.

Free trade for agriculture is all very well, but what if the produce you are importing is not up to scratch? Who decides whether a mushroom is sold as Extra, Class I or Class II? How can farmers be sure their produce is priced in the right category, and consumers be protected from buying kilos of overripe gariguette strawberries?

If there were ever any doubt, current events are making it abundantly clear: good, effective government is crucial to a well-functioning economy and society. Natural disasters such as hurricane Katrina in the US, explosions of social and racial tensions in Europe, terrorism and threats of global pandemics have put government in the spotlight. Such events also underscore the high–and rising–expectations that citizens have of their governments.

Governments have always been keen to achieve results, but calls to improve public sector performance in OECD countries have become particularly loud and insistent over the last couple of decades.

OECD countries have carried out many public management reforms over the last 20 years or so. Yet there is still little comparative data to help governments plan such moves and gauge their progress. To be sure, statistical and budgetary agencies in many OECD countries have made attempts at measuring general government productivity, for instance, but these efforts have tended to be made in isolation, and often employing different methods.

It started in the 1980s with privatisation, when state-run commercial services like telecoms were transferred to private ownership. Now an extension of this idea is to hire private sector businesses to deliver public services. The services remain public, the government remains responsible for regulation and oversight, but businesses either replace public authorities in carrying out the job or share the work with them. What are the reasons for introducing this notion, how does it operate in practice, and can it achieve its goals?