The Internet is now an essential part of our lives and a critical element of the world economy. Internet penetration increased almost sevenfold in the past 15 years, from 6.5% of the world population in 2000 to 43% in 2015.
One country with an exemplary record in broadband is Korea, host of the 2008 OECD ministerial meeting on the Future of the Internet Economy. On broadband reach it is the seventh in the OECD in December 2007, for fibre-optics it lies second only to Japan and is well ahead of the rest of the field, and for download speeds, it is in a comfortable third, after France and Japan. Korea is also a leader in mobile technology.
Code is the next universal language. In the 1970s punk rock drove a whole generation. In the 1980s it was probably money. For my generation, the interface to our imagination and to our world is software. This is why we need to get a more diverse set of people to see computers not as boring, mechanical and lonely things, but as something they can poke, tinker with and turn around.
When I was interviewing 200 bankers and banking staff working in Europe's financial centre the City of London, perhaps the most telling was the language. Not so much the profanities– though there were many of those–nor the technical stuff and three-letter acronyms (TLAs). Most striking were terms that seemed designed to sidestep any possibility of ethical discussion. When discussing their banks’ use of loopholes in the tax code to help corporations and rich people legally evade taxes, bankers used words such as “tax optimisation” or “tax-efficient structures”. Financial lawyers and regulators who went along with whatever banks propose were “business-friendly”; cases of proven fraud or abuse became “mis-selling” and exploiting inconsistencies between two countries’ regulatory systems was 'regulatory arbitrage'.
Following President Obama's trip to Europe last week, it is clear what action he wants - and doesn't want - from the US' European allies: No Brexit, a refugee deal between Turkey and the EU, agreement on TTIP, an increased sense of monetary responsibility for NATO, and action on climate change. See more here.
Is the contemporary formula for measuring GDP outdated? This article from The Economist considers the elements we may be missing when measuring economic productivity including under-the-table labour, such as sex work; opportunity cost, such as taking time off of one's job to care for an ill family member; and the value of time spent on the internet. Read the full article here.
The UK’s tallest mountain is Ben Nevis in Scotland. Recently, it became one metre taller, standing now at 1 345m rather than 1 344m above sea level. Of course, the mountain did not actually grow. Rather, the team of Ordnance Survey experts who re-measured it for the first time since 1949 were able to do so more accurately because of improvements in technology, and specifically through the use of GPS.
The Internet has come a long way since it entered the public domain some 15 years ago. One man who has made it his business to follow Internet’s development is Henry Copeland, founder and director of Blogads, one of the world’s largest blog-specific advertising companies, and Pressflex, a web-hosting company dedicated to the needs of small journals and magazines such as this one, and larger commercial titles, such as FT Business. As Mr Copeland points out, all his business grew organically, without the help of business angels, but with offices now in North America and Europe, and clients or users in every continent. We interviewed him in his home base in the US, by email of course.
A study released by the Peterson Institute for International Economics found that the profits a company makes are higher when more women are present in the workplace. Read The New York Times' article here.
On 11 Feburary 2016, the first International Day of Women and Girls in Science, UNESCO marked women's participation in fields that, in many countries, is dominated by men. Read the full article here.
Ever plodded through flood waters to get to a conference? In late January, the Green Growth Knowledge Platform (GGKP) held their 3rd annual conference in Venice, Italy at the impressive Ca’ Foscari University. More than 200 experts from universities, governments and agencies converged to discuss the role that fiscal policies can play in greening growth. With the streets filling rapidly with water, nature (influenced by a changing climate) provided extra motivation to act immediately on this issue as participants flocked to indoor heaters and radiators to dry out their drenched shoes and socks.
The terrorist murders of 17 people in Paris on 7, 8 and 9 January were not only a human tragedy. They were a direct attack on the values of living together in the free, law-abiding, pluralistic societies we hold dear.
Following the terrorist attack on French satirical magazine Charlie Hebdo, the OECD Secretary-General has expressed his condolences and support, on his behalf and that of the Organisation’s staff, to President Hollande and the French authorities. He also indicated that the OECD deplores this action, which is fundamentally opposed to the values we hold dear.
After three years of sacrifice, hard work and difficult reform, Ireland has fought its way out of the depths of the financial crisis to become one of the fastest-growing economies in Europe and one of the best countries in the world in which to do business.
The world economy remains stuck in low gear, and a "stronger policy response" is needed, particularly to boost demand in the euro area, OECD Chief Economist Catherine L. Mann said today, 25 November.
Tourism has shown remarkable staying power in recent years. Despite political instability, wars, natural disasters and a global financial crisis, the industry keeps getting up for another round. Japan is good example. After the 2011 earthquake and Fukushima nuclear accident, the number of visitors to the country plunged. But in 2013 more than 9 million tourists visited the country, a record high.
Are global companies improving their environmental, social and governance performance? There is good reason to be optimistic, though there is much work to be done.
On 24 April 2013 the Rana Plaza, a commercial building and garment factory in Dhaka, Bangladesh, collapsed, claiming some 1,130 lives and injuring thousands more. The shock was felt globally. How could this happen? Who was to blame? If the building was not fit for purpose, why was it being used? How could such a disaster be prevented from happening again?
Carbon dioxide (CO2) is a long-lived gas. Almost half of the CO2 emitted in 2013 will still be in the atmosphere a century from now. This means that its concentration, and warming potential, increases over time, unless the rate of accumulation can be cut to zero. This is the goal that the OECD is urging all countries to achieve: zero net emissions by mid-century. To accomplish this, the explicit price of carbon dioxide emissions should be aligned more closely with their true cost, while avoiding expensive policy options that could be replaced by more cost-effective ones.
Case studies of specific products, particularly in the electronics industry, show that value creation along a global value chain tends to be unevenly distributed among activities. The highest value creation is found in upstream activities, such as the development of a new concept, research and development (R&D) and the manufacturing of key components. But it is also found in downstream activities, such as marketing, branding and customer service.
The shortfalls of GDP that were already apparent before the crisis but made starker during it have led to a panoply of new initiatives to find metrics that can measure wellbeing rather than just economic growth. But while GDP has stood accused of overlooking the environment and human well-being, it has one advantage which policymakers and analysts appreciate: the methods are objective and clear. Whether measuring output or expenditure in an economy, GDP produces a single number that is easy to adjust and compare.
This year marks the 50th anniversary of Japan’s membership of the OECD. Japan joined our organisation on 28 April 1964, marking a significant milestone as the first Asian country to do so.
How can we increase employment and strengthen social cohesion? The prime minister of Norway argues that we need urgent action to ensure that an entire generation of young people remains connected to the labour market. We must also address the issue of income distribution to protect the vulnerable and guarantee greater equality of opportunity across our societies.
The current crisis has continued to affect people’s lives across the world, and nowhere is this more evident than in the deteriorating labour market in many countries. Young people have been hit particularly hard and risk being permanently scarred from joblessness and even exclusion.
A recent OECD Recommendation on the Governance of Clinical Trials issued in December 2012 could improve the outlook for fighting deadly diseases around the world. Here is how.
How to get it right
Austerity programmes to restore order to public finances can add to the woes of already struggling economies, leading to more job losses and social hardship. But there are ways for governments to put their fiscal houses in order, while supporting growth and reducing income inequality at the same time.
What the BEPS are we talking about?
Bloomberg’s “The Great Corporate Tax Dodge”, The New York Times’ “But Nobody Pays That” and the Guardian’s “Tax Gap”: these are some examples of the wide media attention given to global tax issues in recent weeks. The public is understandably becoming alarmed, since what is at issue is how profit shifting by multinationals is eroding their national tax bases. OECD initiatives on tax policy can help.
The new performance frontier
By helping emphasise the importance of a “better life” as a key component of societal progress, the OECD has made considerable efforts in recent years to help promote a school of thought that places people’s well-being at the heart of economic growth. After examining the issue of growth and productivity gains, and recognising the question of the environmental cost of our economic activity, the time has come to turn our attention to another area that is equally crucial: fostering a more human economy.
The new OECD/WTO database on trade in value-added is not just about changing the numbers, but policymakers’ approaches too. It gives trade fresh importance, and a place high on the agenda of the UK’s G8 presidency.
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