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. 

As humans, we face a constant internal conflict between immediate gratification and more prudent living. This conflict is also apparent in society. How can we ensure that the homo economicus within us takes the decisions that best affect our lives, and economies?

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You paint a positive picture of Turkey’s economy in terms of growth of GDP and employment (OECD Observer No 290-91, Q1-Q2 2012). Nevertheless, the interview states that for the future of the Turkish economy, “labour market reform is key, especially to encourage the shifting of resources from the informal to the formal sector: a more flexible labour contract is needed and minimum wage setting should be decentralised”

The Internet is much more than a multi-billion dollar industry. The world’s economy now depends on this global “cloud”, which was once little more than a means of connecting different computers over a phone network. Today, the digital age has vast new potential to serve as a force of progress in the global economy, but better, smarter public policies will be needed for that potential to become reality.

After five years of crisis, the global economy is weakening again. In this we are not facing a new pattern. Over the recent past, signs of emergence from the crisis have more than once given way to a renewed slowdown or even a double-dip recession in some countries. The risk of a new major contraction cannot be ruled out. A recession is ongoing in the euro area, the US economy is growing but below what was expected earlier this year, and a slowdown has surfaced in many emerging market economies.

To mark the occasion of the 50th anniversary edition of the OECD Observer, we take a brief look at how the information world and the global economy have transformed since the OECD’s first secretary-general, Thorkil Kristensen, launched the magazine in November 1962.  

The EU’s crisis has as much to do with leadership and solidarity as resolving fiscal and debt problems. It is time to dispense with caricatures and write the next chapter in the EU’s ongoing history. And for that, clear and transparent data will be needed.

The fallout from uncertainty that continues to undermine the global economy is reflected in international investment, which is falling once again, following two years of steady gains.

Start-up rates in OECD countries are slowly edging back to their pre-crisis levels, but not all countries have seen significant acceleration in new businesses, according to Entrepreneurship at a Glance 2012. 

Are you able to make sense of the barrage of opinion poll data that is currently being published in the lead up to the US presidential election on 6 November? Bruce Stokes, Director of Pew Global Economic Attitudes at the Pew Research Center, sheds light on the poll trends and assesses to what extent issues such as the economy will be deciding factors when voters approach the ballot box.

Two years after Israel joined the OECD, Sharon Kedmi, Director General at the Ministry of Industry, Trade and Labor, is leading a delegation to an important OECD Employment Labour and Social Affairs Committee meeting on 26 October. He spoke with the OECD Observer.

See the trends in taxes on personal income for the G7 from 2008 to 2011.

The current economic climate has put increased pressure on young firms trying to raise money and develop their businesses. Banks remain reluctant to provide loans to start-ups and venture capital firms prefer to invest in later stage companies. Now, a growing class of experienced entrepreneurs and business people–known as “angel investors”–is stepping in to fill this funding gap. Could this be encouraged further?

“Work more to earn more” was former French president Nicolas Sarkozy’s refrain in his 2007 election campaign. But does working more hours mean the economy is better off?

Two decades ago, when the first Rio Earth Summit took place in 1992, the most advanced economies were in an economic downturn. It was not as severe as the crisis many countries have endured since 2008, but asset bubbles had burst, unemployment had risen and recovery seemed a remote prospect.

Bring back manufacturing! This refrain has echoed about since the start of the crisis: is it a serious proposition to win back manufacturing activity after years of decline and if so, how?

The euro area has been at the centre of the global financial storms for two years. Some serious observers have begun to question whether the euro area will survive these currents. The recently published OECD Economic Survey of the Euro Area shows how Europe’s bold experiment in economic integration can be made to work. 

Poland is not yet a member of the euro area, though is watching the euro situation with close interest. 

The new euro architecture that is to come into effect from July still suffers from shortcomings, and problem countries have yet to prove that they can survive within the euro says Thomas Mayer. It would be premature to sound the all clear on the euro crisis. 

European leaders should shift their focus from austerity to growth, not least to fight unemployment, says the ETUC, which urges a Social Progress Protocol to be attached to the European treaties. 

The crisis-induced trend towards inward-looking policies poses great dangers for Europe. 

The OECD is preparing its forthcoming Economic Survey of Turkey. What issues will be examined? We asked the OECD Economics Department to outline them. Turkey has achieved strong growth in terms of GDP and employment and its public finances are in comparatively good shape. As you prepare your forthcoming Economic Survey of Turkey, what factors would you say contributed to these successes? 

Ultimately the economic crisis is about people, says Espen Barth Eide, Norway’s minister of foreign affairs. That is why respecting human rights and adherence to democratic principles are fundamental when addressing the current economic crisis. We are in this together, so we need multilateral solutions more than ever.

Transport is not only a fundamental driver of economic activity, it is a major sector in its own right. But while transport has suffered from the economic crisis, as echoed in downturns in trade and activity generally, it could be a source of recovery too. We asked José Viegas, head of International Transport Forum, to explain. 

The economic headlines may have brightened somewhat in 2012, but an OECD Spring this is not. The economic and financial crisis has left deep scars that will take a long time to heal and which will shape policymaking for years to come. 

Financial market overhang rather than excessive fiscal spending threatens confidence today. And there are sounds investments which can make society healthier.

When it comes to fixing the economy, could the collective efforts of business and other interested parties be a better solution than passing new laws?

Was a major lapse of consumer protection at the heart of the subprime crisis? For consumer advocate Ira Rheingold, only better financial regulation and consumer protection will prevent future meltdowns. 

The OECD Better Life Initiative can make a difference to policies, and to people’s lives too, though that also depends on participation. 

Since the 2008 financial crisis, strains in the financial sector and in government balance sheets mean there is less and less supply of long-term capital. This has profound implications for growth and financial stability. Policymakers should take action. 

Globalisation has always been a process of far-reaching and often unexpected change, as well as geographical shifts in power, and this is reflected in the rise and fall of great cities. What lessons can we draw for the future?

Brazil has emerged as a global economic player and expectations are rising of further success ahead. But there are several tests to pass along the way. 

Anyone wishing to gauge Brazil’s status as one of the world’s most lucrative emerging markets should look at the growth of its financial sector. 

Brazil needs to invest heavily in basic infrastructure to support its expanding economy. Progress is being made, but it is a daunting task. 

How can the euro crisis unfold? For David McWilliams, Irish economist and best-selling author, the answer is probably a two-speed arrangement between core and periphery. 

Apprehensions about China’s unbalanced growth process concern everybody, but its causes are often misunderstood.
What can the Chinese leadership do to rebalance investment and consumption? 

As the US emerges from the deepest recession since the Great Depression, it is critical to take steps that will lead not only to recovery, but also to more robust economic growth with rising employment and broadly shared income gains. 

Will China’s growth slowdown last and what does it mean for the rest of us?

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