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?

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? 

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 to explain.

Ultimately the economic crisis is about people. 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.

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?

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. 

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

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. 

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?

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

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. 

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

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 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. 

Mental illness alert; Rural promise; Economy; Country roundup; Global steel grows; Green growth platform; Soundbites; Plus ça change...

Increasing citizens’ input to policymaking is one of the goals of the new indicators of well-being developed to make up for the inadequacies of GDP as an indicator. Unfortunately the latter leaves out many factors which clearly play a fundamental role in all of our daily lives, ranging from health to the quality of the environment, education, housing or even social ties and security. It is therefore crucial that the public at large understand how the new indicators designed to supplement GDP are constructed and interpreted, and if possible the public should be fully involved in the process. 

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. 

The corporate world is far from making the most out of gender diversity in the workplace. But some businesses are finding innovative ways to change this. 

The global economy took a sharp turn for the worse following the collapse of Lehman Brothers in September 2008, and today it is increasingly apparent that the crisis has entered its second round. This time we are facing a combination of low growth and trouble in the financial sector, just as governments find themselves running out of economic policy options. 

Perhaps one of the biggest weaknesses in traditional economic thinking is the belief that GDP per capita is the only relevant benchmark of economic performance.
Yet, there is compelling evidence to show that increases in GDP have little impact on happiness or life chances. 

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. 

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? 

The history of economic policymaking has been marked by a succession of “paradigms” defining the goals of economic policy and the instruments used to attain them.
OECD Chief Economist Pier Carlo Padoan looks at where we go from here.

"A critical moment" is how Chief Economist Pier Carlo Padoan described the current economic situation as he issued the latest OECD Economic Outlook today Monday. Policy continues to be behind the curve in the euro area and the US, he said. But the situation can be turned around for the better, he insisted, saying that better policies could stop prospects from worsening.  The new OECD Economic Outlook presents upside and downside scenarios, and offers advice on the way forward, both for the wider global economy, and for individual OECD member and partner countries.

The entire collection of OECD‘s country economic surveys has now been made accessible online at the OECD i-Library. Published regularly since the creation of the OECD in 1961, and to mark the Organisation’s 50th anniversary, this online archive offers a unique historical perspective of the economic changes OECD countries have undergone since 1961. It is an invaluable resource for anyone tracing their efforts to rebuild their economies after World War II, addressing the oil crisis in the 1970s, the dot.com revolution and bubble, and the economic, educational and environmental challenges of the 21st century.

Whether or not you believe they have been reformed enough, few institutions have received as much attention during the current economic crisis as banks.

But how much money do they really control and how can their behaviour affect our economies so much?

Despite two decades of outsourcing and globalisation, the US remains the world’s largest manufacturer in 2009. However, its share of world value-added in manufacturing declined from around 22.7% of the total in 1990 to less than 20% in 2009. China’s share rose from a minute 2.7% to 17.5% over the same period, taking over Japan, hitherto the world’s second largest manufacture, whose share dropped from 17.7% to 11.4% over the two decades.

Nobel laureate for Economics, Elinor Ostrom, spoke at the OECD in June. At a time when new models are needed, could her ideas on common resources and governance offer guidance?

OECD economies are in the doldrums, but the trend in global mergers and acquisitions has rarely been more buoyant. International M&A investment in 2011 reached $822 billion as at 21 October. If this pace can be sustained, international M&A will top $100 billion by the end of the year, a 32% increase over 2010 (see chart).

Financial market failures were a major cause of the economic crisis, but property markets, particularly for housing, have had a leading part to play too. From the subprime debacle in the US to the bursting of unprecedented real estate bubbles in Ireland, Spain and Greece, among others, the overheating and collapse of property markets not only hurt savings and investments, but was felt throughout entire economies, affecting construction, employment, lending, spending and more.

“Growth is turning out to be much slower than we thought three months ago,"  OECD Chief Economist Pier Carlo Padoan said when issuing his organisation's forecast update for major global economies on 8 September. 

Migration into OECD countries fell by about 7% in 2009 to 4.3 million people, down from just over 4.5 million in 2008. Recent national data suggest migration numbers fell further in 2010, the 2011 International Migration Outlook says.

Food prices have increased over the year to January 2011 in many of the world’s economies. Moreover, those increases, which accelerated from mid-2010, reversed the downward trend in food prices of 2009 and the first half of 2010, OECD-FAO Agriculture Outlook 2011-2020 says. Threequarters of the OECD countries recorded retail food price increases of 5% or less, while price increases exceeded that in half a dozen or so countries. Two OECD countries, Korea and Estonia, experienced increases of over 10%. Brazil, China, Indonesia and Russia all had double-digit rates of food infl ation during the year to January 2011, well up on the previous year. In South Africa, food prices increased by a moderate 3.3%, though this represented a doubling from the rate of the previous year. Food price inflation also accelerated in the second half of 2010 in several countries from Africa, Asia and Latin America. In high-income OECD countries the contribution of food price movements to inflation has been positive though small, generally around 0.5 percentage points. However, food price increases contributed over 1.5 percentage points to inflation in countries such as Estonia, Turkey, Hungary and Korea. This contrasts with the year to January 2010 when food prices decreased, attenuating inflation. The contribution of food price movements to OECD inflation remains small, the report notes, not least because of the small share of food expenditures in the overall consumer basket.

Assets you cannot touch lie behind successful innovations. What are they and how can policy make a difference?

Long-term care spending to double; Crisis stretches health spending; Start-ups squeeze; Multinational guidelines updated; Soundbites; Russia moves towards Anti-Bribery Convention; Economy; Internet economy advances; New debt centre for South Africa; OECD and India enhance tax co-operation; Plus ça change...

Israel is a popular holiday destination, thanks to cultural and historical, but also leisure, attractions. But there are challenges to overcome.

In many respects Israel’s short but dramatic history has created a combination of economic, social, demographic and political circumstances without close parallel with any other OECD member country. Some of these characteristics are outlined here, and are explored in more depth in the OECD’s first Economic Survey of Israel, published in 2010.

The OECD 50th Anniversary Week 2011 was a momentous and inspirational occasion. Against the background of a fragile recovery of the world economy, 21 heads of state and government and deputy prime ministers, 86 ministers and state secretaries, and over 2,000 participants from business, labour and civil society gathered to identify and discuss the policies needed to achieve a more inclusive and greener path to economic growth and job creation.

How can policy help expand economic opportunities without overly straining natural resources or destroying the planet? And how can we relieve intensifying environmental pressures that currently threaten our welfare? The OECD Green Growth Strategy points a way forward.

Uncertainty about the future, eagerness to devise new ways of managing our economies, and to contribute to the debate on how to make better policies for better lives: these were just some of the discernable public moods at the OECD Forum, held on 24-25 May.

Development aid from OECD donor countries totalled $129 billion in 2010, the highest level ever, and an increase of 6.5% over 2009. But despite this record, the 2010 figures confirm that some donors are not meeting internationally agreed commitments.

Canada is a trading nation. As a geographically large country, rich in natural resources and with a relatively small population, trade was a natural starting point. But Canada has built on this foundation and today boasts a highly skilled and educated work force, a well-developed physical and financial infrastructure, a transparent and predictable regulatory environment, and a high degree of openness to trade and investment.

Major sporting events can boost economies, while giving people a boost too. The Winter Olympics in Vancouver in 2010, which were pulled off to great applause despite the odds, were no exception. How was it done, and what lessons did the organisers learn? We spoke with John Furlong, who headed up the organising committee responsible for the games.

Why do some businesses, organisations, economies and even countries succeed in achieving their objectives while others do not? Important insights are provided if we treat each of these entities as a complex adaptive system, subject to the same processes as biological evolution.