This year the parliaments of two OECD member countries passed legislation broadening the institution of marriage to include same sex couples. Such marriage is now legal in 14 countries worldwide, 11 of which are OECD members.

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?

A major step forward towards putting the measurement of well-being at the heart of policymaking was taken at the OECD’s World Forum on Measuring Well-Being for Policymaking and Development, a four-day international conference held in New Delhi in October.

In 2002 Henry Copeland, chief of Blogads and Pressflex.com, wrote about how blogs, largely unknown at the time, would change web writing and publishing forever. He was right. Then in 2008 in these pages, he told us to bet on Twitter several months before it took off (the OECD opened its first accounts in April 2009). So where is the information world taking us now? Henry provides some fresh thoughts.

The rise of IT and the Internet have been boons to Asia, but not everyone has benefited. There are challenges to overcome, not least in the area of governance.

People create policy, but underpinning their work, and in some ways hidden from view, is a well-developed, smart information and communications infrastructure. It is a fundamental driver of progress.

The media is changing, but must assume a leading role in the unfolding narrative of the information world. That includes building trust and involving new voices in the discussion.

Did you know that the organisation that brought you the Higgs Boson (“god particle”) also brought you the world wide web? Robert Cailliau, one of its founders, and James Gillies, a first-hand witness, retrace the story.

Education is one OECD department that has embraced the information revolution.

Translators are at the forefront of global communications and knowledge. Yet their work has not always been helped by the information revolution. Here are the challenges.

The future will be inherently knowledge-based. Are we moving in the right direction? What must we know to be able to get there? Understanding knowledge-based capital is an important first step.

Did you know that, according to the UN Global Pulse, more data was created in 2011 than in the whole of human history, or at least, since the invention of the alphabet?

Cities that want healthier populations should get them moving. In the US, where urban sprawl and personal motorised vehicle are prevalent, walking makes up only 8.6% of all trips, by far the lowest proportion in our chart.

Democracy is a good thing; transparency is too, and so is openness. Nothing too controversial in this statement, you might think. The veil of ignorance is slowly but steadily being lifted from the eyes of the general public across the world thanks to thriving media, innovation in global communications and the pressure on governments to open up and reach out.

In a globalised world, social unrest occurring far away can have transnational ramifications, with effects nearer to home. This has been evident in recent years with movements such as Occupy and Indignados, and the Arab Spring. Unrest could also be the consequence of a terrorist attack, but even the threat of one can lead to widespread panic. The upshot can be disorder and economic turmoil.

The OECD Observer is celebrating its 50th anniversary: no better time than to turn our focus to the currency of information itself.

Getting information and communications “right” has always been a necessary condition for delivering sound policy advice; today, there are many more possibilities to generate and to share evidence-based policy insights, but there are also many more competing messages and messengers. Here are two examples.

Though mobile technology is making waves in Africa, airwaves still count.

Politicians have long called on the services of public relations firms, design experts and advertising agencies to help them communicate. What impact do they have, and how has their role changed? We asked one of the very biggest in the business, Saatchi & Saatchi, for some insights.

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.

Over the next 50 years, life expectancy at birth is expected to increase by more than seven years in developed economies. While this is good news for many, it will also be a strain on pension systems. To be sure, governments will need to address increasing life expectancy by raising retirement ages gradually. This is a key conclusion of the first Pensions Outlook 2012, a new OECD report which looks at the future of pensions.

The search for measures of progress that might replace GDP is a timely and necessary one, but only a single metric will do the trick. 

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.

Regrettably, gender discrimination is still a problem in our societies and our economies. In fact, “problem” is far too weak a word. It is more accurate to speak of an unacceptable injustice. Women have fewer opportunities in terms of education, employment and entrepreneurship and are, on average, less well paid for their work. 

The OECD’s CleanGovBiz Initiative helps governments fight corruption, while working with civil society and the private sector to promote integrity.

The middle class has long been the backbone of prosperity and economic stability in developed countries. But the crisis is exert increasing pressure on this pillar of society. Does the middle class need saving?

Expect the issue of solidarity between generations to become a major policy challenge in the years ahead, and not just in OECD countries. Here’s why. 

The long road towards gender equality has arrived at greater educational attainment, higher female labour force participation, and advances in politics and business, but we haven’t reached the end yet. 

The average income of the richest 10% of the population is about nine times that of the poorest 10%, up from seven times what it was 25 years ago. Even in more egalitarian countries, such as Germany and Sweden, the earnings of the richest are over six times higher than those of the poorest, compared with just over three in 1985. Inequality has narrowed in countries like Chile and Mexico, though the income gap between rich and poor is still 27 to 1, and in Brazil, which as this edition shows has implemented impressive programmes against poverty and inequality, the gap stands at 50 to 1. Clearly, the benefits of economic growth have not trickled down or been fairly distributed. 

Some 16.3 million Brazilians (8.5% of the population) live on less than $1.50 per day, which by most international definitions indicates extreme poverty. However, thanks to the efforts of successive governments, including that of the current president, Dilma Rousseff, the country has made tremendous progress in reducing that poverty and tackling income inequality too. 

Half the world’s workforce, 1.5 billion working women and men, are in vulnerable employment. The global economic crisis has swelled the ranks of those whose jobs do not provide enough to meet basic needs, the “working poor”, by more than 100 million people, mainly women.

For most of the last century, progress in the conditions of our societies was often assessed through the compass of economic growth, or GDP. In recent years, however, both governments and citizens have come to recognise that GDP provides only a partial view of today’s economic and social conditions and of whether these conditions can be expected to last in the future. Better indicators are needed that take into account sustainability, equity and quality of life.

In October 2011, a high-level panel headed by the former president of Chile, Michelle Bachelet, delivered a ground-breaking report to UN Secretary-General Ban Ki-moon, arguing that everyone around the globe should receive a living income, guaranteed through transfers in cash or in kind, such as pensions for the elderly and persons with disabilities, child benefits, income support benefits and/or employment guarantees, and services for the unemployed and working poor. Martin Hirsch, a member of that panel, explains why this proposal for a more socially responsible globalisation can work. 

Turkey’s efforts in the struggle against poverty and income inequality have met with much success. Today, the country stands out as a model in the region and beyond. Prime Minister Recep Tayyip Erdoğan discusses these achievements and the country’s role in international co-operation. 

In many countries, the middle class is feeling squeezed, and the crisis has only made matters worse. What is behind this sentiment and what can be done to reverse it?

The current 30-year cycle of deregulation and uncompromising belief in the “invisible hand” of the market is coming to an end.
This is happening amid a serious financial and economic crisis that is often compared with the Great Depression of the 1930s. Civil unrest is spreading.

In many countries, the middle class is feeling squeezed, and the crisis has only made matters worse. What is behind this sentiment and what can be done to reverse it?

©OECD

Have you ever had the feeling that economists and governments speak about wealth and growth in a way that doesn’t always chime with your own everyday experience?

Most people would probably agree that female employment and maternity leave are related issues. But did you know that female employment rates are not always highest in countries where paid maternity leave is longest?

The OECD’s Your Better Life Index, launched at the 50th anniversary OECD Forum on 24 May, lets users from the general public weigh up the factors (initially from a list of 11) they feel matter most in assessing their well-being.

How willing are you to pay more for renewable energy? Judging by a survey we previewed in 2010 (see here for instance) and whose results have now been published, the answer is: not that much. Greening Household Behaviour shows that while people may change their habits if given the right incentives and information, they are not quite as ready to dip deeply into their pockets.

A few decades ago the poorest in society were most likely to be pensioners. Now children are taking over that mantle, as poverty in households with children rises in nearly all OECD countries. Indeed, families with children are more likely to be poor today than in previous decades, according to Doing Better for Families, a new OECD report.

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.

This year we are celebrating the 50^th anniversary of a remarkable organisation which has brought a huge and, in many ways, immeasurable impact to the economic and social development not only of its members, but of the world community of nations.

The OECD allows policymakers to come together to identify best practices that shape our public policies. It allows us to compare and benchmark our performance, and learn from top performers. By participating in the OECD peer review process, we benefit from frank discussion among equals on our accomplishments and shortfalls in a variety of areas, from the economy to development policies. The objective and credible analysis provided by the OECD strengthens these discussions. Overall, Canada’s socio-economic performance is strong compared with the OECD. However, in order to improve further, we need to know where others are doing better and to learn how they are achieving these results.

How much more would you be willing to pay for renewable energy? Are environmental concerns a factor in how much you use your car? And are you really thinking about the environment when you buy organic food? All these questions, and more, are at the heart of the 2008 survey which forms the basis of Greening Household Behaviour. A part of the OECD’s Green Growth Strategy, this survey covered 10,000 households across ten OECD countries to determine how our day-to-day relationship with the environment may affect reforms, and is due for another round in 2011.

“[…] On behalf of the OECD, I express our profound sorrow at the enormous loss of life and extend our condolences to all those who have been affected by this terrible tragedy. At the same time, we admire the courage and resolve of the Japanese people in face of adversity, and we are confident that Japan will emerge from this disaster stronger and better.

A new kitchen can raise the value of any home, but in developing countries it can also save lives. That is why in 2010 the OECD’s very own staff charity, the War on Hunger Group, decided to contribute funding to fitting a new kitchen in the headquarters of AFENA, an NGO dedicated to looking after abandoned women and children, and based in Niger’s second city, Maradi.

Child poverty warning; Economy; Soundbites; Slower development aid?; Japan rebuilds; Tax burden on the rise; Estonia joins the OECD; Shinier steel outlook; Cities under-served by carbon markets; Brazil and India sign OECD chemical accord; Corruption: governments warned; Plus ça change...

We are celebrating the OECD’s 50^th anniversary during the tail-end of the worst financial and economic crisis of our lifetimes. It’s a good moment to take stock and to ask the right questions. Why couldn’t we avoid the crisis? Were the policies and the policy mix we promoted the right ones, and how can we adjust these polices to new realities? What is more, are we doing enough to prevent another crisis? Are our economic theories, our models and our assumptions still appropriate? How should our organisation’s work be adapted so that we continue fulfilling our founding mission of promoting better policies for better lives?

The OECD, a pioneer in the quest to measure the progress and well-being of societies, is launching an exciting new initiative, incorporating Your Better Life Index. The initiative is not only a major step forward in assessing people’s true welfare, but involves people in the process too.

Strategic foresight is an essential tool in any government’s toolbox. It’s what enables policymakers to anticipate developments better, encouraging them to be more creative in reflecting on their options, and offering them more time to prepare and set in train their programmes. It is an area in which some governments excel, while others perform less well. It is also an area subject to much misunderstanding and confusion.

Economic growth is not an end in itself: higher levels of productivity and rising national income are only important insofar as they contribute to better standards of living and of improved well being of people.

Tourism is an important player in the worldwide economy. In 2009, it accounted for just over 9% of global GDP and employed about one in 12 workers, according to the World Travel and Tourism Council.

The fact that the OECD’s 50^th anniversary should come in the midst of a global economic crisis is a coincidence, but it could prove to be a fortuitous one. After all, historical perspectives can help better understand the present and better prepare for the future. There are other major anniversaries of historical significance also being celebrated at this time which we should look at more closely, for there are lessons to be drawn. Germany, for instance, has just commemorated the 20^th anniversary of reunification. When the former West and East Germany came together shortly after the fall of the Berlin Wall, it marked the end of opposing the ideologies of “central planning versus markets”. More than that, reunification combined with dramatic shifts throughout the former eastern bloc and beyond, setting free hundreds of millions of people around the world.

Entering the workforce for the first time is a challenge for most people, but can be even more difficult for immigrants. Recent data collected across OECD countries reveals that children of immigrants experience higher unemployment and have more difficulty finding jobs than children of native parents. Even when they are born and raised in their country of residence, the employment rate of children of immigrants can be as much as 20% lower than their counterparts.

In 2007, even before the economic crisis hit, and before employers started shaving working hours to spare jobs, one in four women and almost one in ten men in OECD countries worked part-time. Most of them did so because they wanted to, not because they had to. In the Netherlands, for example, where the share of people working part-time is particularly high at almost 37%, less than 4% of part-timers would rather work full-time.

There were an estimated 140,000 suicides in OECD countries in 2006, the most recent year for which internationally comparable data is available. Death rates were lowest in the southern European countries of Greece, Italy and Spain, as well as Mexico and the UK, at fewer than seven deaths per 100,000 people. They were highest in Korea, Hungary, Japan and Finland, at 18 or more deaths per 100,000 people.

The staging of the World Cup in South Africa was a tribute to that country’s transformation since Apartheid in the 1990s. However, poverty persists. Some 54% of South Africans are poor, based on a national definition of poverty of living on $4 a day. And poverty and inequality still reflect race, as our graph shows. While widespread access to services such as housing, water and electricity has improved substantially, the link between race and poverty remains remarkably strong by international standards, as the income of black South Africans continues to lag behind whites and Asians in the country.

The number of people worldwide living in absolute poverty–the World Bank defines this as people surviving on less than $1.25 a day–has fallen by about half a billion since 1990. China is a major contributor to the decline: its absolute poverty fell from about 60% in 1990 to only around 16% in 2005. India, too, saw some progress, as poverty there fell from 60% to 42%.

I remember the story my mother used to tell about having to monitor the work of a male co-worker even though his salary far surpassed her own (Comment on “Does Wonderwoman earn as much as Superman?” by Tracey Strange, www.oecdinsights.org, 8 March 2010). She made many strides over the years, in spite of being a woman, and was the first person in her large corporation to have a personal computer at her desk. Even though she retired comfortably, her salary never compared to that of her male co-workers. In the twenty years or so since her retirement women have continued to make incredible strides in the workplace, finding more opportunities in a wider variety of jobs with greater access to the “big bucks.” No doubt things have improved, but it is imperative that organisations like the OECD and others continue to work for true equality in the workplace in all parts of the world. Wouldn’t it be nice if this were the only inequality for women?

Despite a 12.5% decline in international tourism travel in the first quarter of 2009–the depths of the current recession– international tourism has been growing slightly faster than the world economy and is expected to continue to do so, with a projected average annual growth rate of about 4% over the long term.

Has gender equality improved since International Women’s Day was first launched a century ago? The answers heard during this year’s global events on 8 March were mixed. Yes, progress has been made, but discrimination continues everywhere, which not only harms women but holds back society’s potential too.

David Sterboul, a photographer at the OECD, passed away in November at a tragically young age. We would like to extend our sympathies to his family and friends.


©OECD Observer No 276-277 December 2009-January 2010

Although agriculture and industry are the thirstiest of all water consumers, household water use accounts for some 10-30% of total consumption in developed countries. As governments develop strategies to promote water conservation, an OECD survey of households conducted in 2008 offers insight into what really works. Based on some 10,000 responses across 10 countries, the answer is as clear as what comes out of the tap: having to pay for water encourages water-saving behaviour and investment in water-saving appliances, thus reducing consumption.

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?

Has the crisis driven up public interest in policies?