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”

In May 2012 the OECD Ministerial Council endorsed the OECD Strategy on Development, describing it as an essential tool for adapting the organisation’s work to fast changing realities. What are the factors behind the new strategy and what are the aims? 

With over 200 million people between the ages of 15 and 24–a figure that will double by 2045–Africa’s fast-growing population is the youngest in the world. In the coming decades, hundreds of millions of young Africans will pour on to the job labour market as they leave schools branding qualifications of various levels.

The OECD is cooperating with governments and companies to combat the scourge of conflict minerals and has issued a guidance that several African countries have endorsed. There are encouraging signs of progress.

Aid from major donors in the OECD area to developing countries fell by nearly 3% in 2011, ending a long trend of annual increases: until 2011, aid had been increasing for more than a decade, and by 63% between 2000 and 2010, the year it reached its peak.

Hunger affects about 1 billion people around the world, and as the economic crisis continues, the push for growth can actually make matters worse.

In a relatively short time, microfinance has become a major tool of international development. But too many potential entrepreneurs still have little or no access to financing. Innovation and government policy have a central role to play in correcting this imbalance. 

What can we do in the years to come to ensure food security? In the opinion of Action contre la Faim, a number of avenues could help promote secure access to food for everyone. 

There are signs of a new, more confident and self-affirming Africa taking shape. As the 2011 edition of the African Economic Outlook argues, this newness is also evident in the continent’s relationships with emerging economies.

Speech by Hillary Clinton, US Secretary of State and Chair of the 2011 OECD Ministerial Council Meeting, at the commemoration of the 50th anniversary of the OECD, 25 May 2011.

In 2008, the Chinese economist Justin Yifu Lin became the first person from a developing country to be appointed World Bank Chief Economist.

With the crisis still unfolding, can governments meet their agreed development aid targets? Total net official development assistance (ODA) from donor countries in the OECD Development Assistance Committee came to $119.6 billion in 2009, which is a real increase of 0.7% from 2008. If debt forgiveness is excluded, the real increase jumps to 6.8%. In fact, development aid rose by some 30% in real terms between 2004 and 2009, and continued to grow during the crisis, unlike other financial flows to developing countries, which have fallen sharply. Nonetheless, more aid effort is needed.

Before the global recession, most of Africa was booming. At last. Can it bounce back?

Reforming tax systems can boost development by giving countries more autonomy. This can lead to broader reforms too.

In many African countries, where unemployment rates can run as high as 30%, there is strong potential for entrepreneurship and employment. Development must focus on bringing down the barriers to progress. 

There are no silver bullets or magic potions for human development. Rather than trying to replicate past experience, we need to focus on new opportunities.

Is Africa finally on the move? The signs are promising.Rich in natural resources and with more than one billion people, it achieved five consecutive years of economic growth averaging more than 5% over 2004-08. In fact, private investment rose every year from 2000 to reach US$472.2 billion in 2008. And despite some fallout from the economic crisis that started in the OECD area in 2008 and brought African GDP per head to a virtual standstill in 2009, activity has started to ramp up again.

In the current economic climate, in which early signs of recovery give grounds for optimism, the countries of the MENA region are keenly aware of the common challenges that must be met through stronger principles of good governance and economic freedom, consolidation of the rule of law and democracy, the fair distribution of wealth and compliance, and respect for the environment.

The Maghreb coastal corridor links Morocco to Egypt by road and from there connects to the Arab countries of the Mashreq. Much of the 31,000 km of planned roads are in place. Part of a major road plan that some hope will one day link much of the African coastline, the corridor embodies a future of promise.

A salmon would find it a hardscrabble life in the waterways of the Middle East and North Africa (MENA). Not because of dried riverbeds, overfishing or pollution, but because the region has more dams per cubic metre of water than any other place on earth.

Unemployment at historic highs, declining oil prices, plummeting government budgets and low investment due to persistent political uncertainty-one or more of these barriers to progress exist in many MENA states, but add them all and combine the security concerns in the aftermath of war and that is the unique challenge for Iraq. For years, arms and oil have been the major trade activity, but with security improvements being implemented in tandem with political, legal and regulatory reforms, investors are once again beginning to view the Mesopotamian cradle of civilisation also as a cradle of investment.

The world is going through hard times. Though there are some signs of an economic recovery, global confidence remains fragile. From the economic and social crisis to climate change, natural disasters and conflict, rarely in modern history have we faced such a testing period.

The crisis has taught us many lessons, about our policies, our practices and our ways of life. But if there is one lesson that stands out, it is the importance of international co-operation to help us overcome the challenges we face.

Tackling the challenge to build well-functioning tax systems in developing countries requires concerted international co-operation among developed and developing countries, international organisations, business and civil society. 

The increase in average incomes and the fall in levels of absolute poverty, in particular during the last decade, suggest that an increasing proportion of the world’s population is neither rich nor poor by national standards but finds itself in the middle of the income distribution. 

Discrimination against women hurts everyone. As Founder of the Cherie Blair Foundation for Women Cherie Blair explains, women entrepreneurs are an economic resource that economies, rich and poor alike, can ill afford to overlook.

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.

As efforts to restart the stalled Doha Development Round negotiations intensify, the policy focus on world trade, and, specifically, its relation to development aid and growth in poorer countries, has become more acute. Trade is a powerful engine for economic growth, as the OECD’s founders argued 50 years ago, and, as such, can contribute to reducing poverty. However, efforts to improve trade in developing countries are often hampered by domestic constraints, particularly a lack of adequate economic infrastructures, as well as institutional and organisational obstacles.

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.

As the OECD reaches 50, it must continue to become more relevant, useful and open within a new architecture of global governance, argues Angel Gurría, in this extract from remarks delivered following the renewal of his mandate as OECD secretary-general.*

Structural economic challenges and preparing for recovery were the dominant themes at this year’s Ministerial Council Meeting (27-28 May), under the chair of Italy’s prime minister, Silvio Berlusconi. Fiscal challenges, jobs, green growth, innovation, development, trade and investment, and societal progress all figured on the agenda. These highlights are based on the full conclusions, which can be read at www.oecd.org/mcm2010

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 road from conflict to peace and from destruction to development is far from smooth. In fact, research shows that half of all countries that have been ravaged by conflict are at war again within a decade. Transition Financing: Building a Better Response, part of the OECD’s Conflict and Fragility series of books, examines how the international community can help countries move from resolving conflicts to a lasting peace, grounded in what the authors describe as “sustainable development”. It involves a transition to greater national ownership and a greater capacity to ensure public safety and welfare.

Health spending rises; Round up; Soundbites; Benvenuto!; Economy; Food speculation question; Chinese flexibility welcomed; Slovenia joins the OECD; Plus ça change...

As an OECD “veteran”, I was delighted to see that “human progress” is now on the OECD agenda (see www.oecd.org/progress). If you compare the OECD strategy to emerge from the oil-shock recessions of the 1970s (the McCracken Report) to the OECD Strategic Response to the Financial and Economic Crisis of today, you can see that in three decades the OECD has been transformed.

Could country-by-country tax reporting help boost revenue for development? The answer is not that simple.

The launch of the ATAF marks a milestone in the continent’s quest for greater self-reliance, economic growth and social development.

Some major businesses are starting to view taxation as a mainstream part of their corporate social responsibilities. Others should follow their example.

A lot of debate about tax and developing countries nowadays tends to focus on how to reduce revenue leakage through offshore tax havens. But there is another hot issue called transfer pricing which developing countries have to be mindful of, particularly if they want to avoid the risk of losing out on tax revenue from cross-border transactions carried out by multinational enterprises. How does it work?

Emblazoned on the front of the Internal Revenue Service building in Washington DC is a quote from American poet, author and judge, Oliver Wendell Holmes: “Taxes are what we pay for a civilized society ” It is the potential to inspire better governance through raising revenue that matters to civil society, and everyone has a role to play. To act as responsible corporate citizens, companies must pay the right amount of tax and be transparent about it. Yet Christian Aid estimates that developing countries lose as much as $160 billion–greater than the global aid budget–to companies dodging tax.

On 2 November, Morocco launched a US$9 billion solar energy programme. With fi ve power plants, the programme aims for a total installed capacity of 2,000 MW by 2020-equivalent to almost 40% of the country's electricity production.

Through the ages, the countries of the Middle East and North Africa have been known for their great feats in engineering. The marvels are legion, from the Mesopotamian irrigation systems to the Great Pyramid. But did you know that the first concentrated solar steam engine was built near Cairo in 1914? A century later, solar energy is again putting the region on the cusp of new exploits, this time in renewable energy.

The Egyptian government is focusing on several regulatory reform and improved governance priorities. An initiative now underway, ERRAD, aims to collect and review all legislation and ministerial decrees in the areas of investment, trade and industry.  A Transparency and Integrity Committee was also formed to help establish a national strategic plan for governance in civil service.  Special attention is also given to reforming the social security system.

Investment is essential for development, but not all investment brings the wide benefits it promises. This is because the impact of investment on development depends on many things. The type of investment is one factor, but more important is the way in which businesses conduct their activities. This also largely depends on whether the policy and regulatory environment provided by governments encourages or discourages responsible business conduct.

Small and medium-sized enterprises may be the flavour of the moment in development policy, but the potential role of large multinational firms, or MNEs, should not be overlooked. After all, there is some evidence of MNEs having a positive effect on employment and wages, as well as plugging local suppliers into international markets, which boosts skills, technology and productivity.

State building is governance writ large. Seen from without, the accomplishments of a nascent state stand in harsh juxtaposition to the fine-tuning of politically and economically stable governments. One is a stone mason and the other a builder, confident the foundations will support his project.

Morocco is facing the same challenges as most other countries in the MENA region, and hopes to follow the best and most practical paths toward the integrity, transparency, openness and partnership that will promote good governance and development.

The University of Al-Karaouine is located in Fez, Morocco. Founded in 859, it is regarded by many as the oldest university in the world. Today, as countries in the Middle East and North Africa region begin to compete more vigorously in the global economy, they are again focusing more concertedly on how to rekindle their great, historic asset: human capital.

Small and medium-sized enterprises need adequate financing to meet needs at each stage of their life cycle, from creation through operation, development, restructuring, recovery and beyond.

Since antiquity, governments, emperors, kings and queens have been providing traders and investors with special sites offering respite from normal import-export tax regimes and regulations in return for a steady stream of much needed revenue for the public purse. Before modernity, such places were concentrated in the Mediterranean basin, at Delos in Greco- Roman times, and in Venice, Genoa and Marseilles during the Middle Ages. By the 19th century, they had spread to Southeast Asia. But it was not until the latter half of the 20th century that so-called free zones made their mark as deliberate tools of economic development, most notably in China in 1979 when one of the most famous free zones of all was set up at Shenzen.

Hana Barqawi realised her dream of opening her own children's furniture store two years ago in the Jordanian capital of Amman. Ms Barqawi is part of a wave of female entrepreneurs that has swept across the Middle East and North Africa area over the past decade or more. She is not surprised: "Arab women are well-educated, openminded, open to new ideas, new cultures, new challenges," she says. Nor has she found cultural attitudes to be a major problem, with Jordanian men accepting the new female business presence. But Ms Barqawi notes that while servants and nannies are available to help with childcare, balancing work and family life has now become a daily juggle for many women like her. But to what extent do Ms Barqawi's experiences reflect those of other women across the Middle East and North Africa region?

The global crisis and how to get growth and development back on track led the agenda as ministers from MENA and OECD countries gathered at Marrakech in Morocco on 23 November 2009. In our ninth OECD Observer ministers' roundtable, we asked representatives from four MENA countries-Morocco (as hosts of the ministerial meeting), Bahrain, Egypt and Yemen-and from three OECD members-Italy, Korea and Spain: "What action is your government taking to help improve development prospects in the MENA region?"

The countries of the Middle East and North Africa stand at a crucial stage in their development. Though several of them had until recently witnessed high growth-Morocco's economy expanded by over 5% in 2008, Egypt's and UAE's by over 7%-the global crisis has finally dealt a blow.

Showing progress; Economy; Hard talk

Africa's economies were on the rise when the financial crisis hit in 2008. Growth was running high on the back of commodity price increases, with African exports almost doubling between 2000 and 2006. Over the same period, foreign capital flows quintupled. Yet the crisis has jeopardised this progress, resulting in a severe investment slowdown, particularly in oil and mineral production, and halving Africa's growth rate from 5.7 % in 2008 to 2.4 % in 2009.

The wave of natural disasters that swept the Pacific and Indian Ocean regions in recent weeks has left a heavy human and economic toll. Thousands have perished, lives and communities have been shattered. Could some of this have been avoided, or the toll reduced? We have been here before, notably following the tsunami that struck southern Asia and the east coast of Africa in 2004. The latest tsunamis, typhoons and earthquakes are tragic reminders of how vulnerable some human settlements are, and underline the importance of integrating disaster risk into development practices.

On 7 September 2009, a report from the United Nations conference on Trade and Development (UNCTAD) blamed the "dominance of the dollar" for playing an important role in the recent build-up of global imbalances, particularly in trade and the current account, which helped lead to today's global economic crisis.

The good intentions of governments and donors to ensure long-term food security for all may be melting away in the face of the current global financial and economic crisis.

There are just six years to go to the deadline set by the international community for achieving the Millennium Development Goals (MDGs). The trouble is, reports now indicate that no sub-Saharan African country will attain all the goals by 2015.

Africa did not cause the economic crisis, but will suffer from it. What are the prospects?

Record fall in GDP; Economy; Gender learning; Other news; Soundbites; Plus ça change...

“The Chinese government rightly advocates firm opposition to trade and investment protectionism, as emphatically stated by Premier Wen Jiabao on several occasions in the past few weeks. As it did a decade ago during the Asian crisis, China has set itself firmly against inward retrenchment in the face of economic downturn. We celebrate this commitment at OECD.

Development aid rose to a new record in 2008. While good news in a crisis, how can the trend be maintained?

Coherence in policies within countries and between them will be vital to restoring economic growth and development.

The economic crisis has hit the entire world economy, with governments stepping in to rescue financial systems and kick-start economic growth. This adds up to a triumph for government fiscal policy, though fiscal policy must be used audaciously.

International aid conferences are famous for their promises and commitments, but at Accra, donors and aid recipients may finally have started to “walk the talk”.

Emerging markets such as China, India and Brazil are increasingly regarded as central rather than peripheral players in the global markets. Can this “rebalancing” continue through the current crisis?

Two major international sporting events take place this summer, with the Olympic Games in Beijing and the European football championships in Austria and Switzerland. The question on many policymakers’ minds will be less about medals on the track or pitch, but whether holding such major events can make or break the cities that host them?

According to President John F. Kennedy, the person who can solve the water problems of the world should receive two Nobel prizes, one for peace and the other for science. More than four decades after his death, the world is realising the complexity and urgency of the water-related problems facing humanity, and the relevance of his remark.

Originally founded by OECD member countries as “Club du Sahel” in 1976 to raise international support and awareness of the drought crisis in the Sahel region, the Club extended its geographic coverage in 2001 to encompass all 17 West African countries, home to approximately 290 million people.

Did you know that over the last ten years, the largest bilateral donors to Africa, excluding debt forgiveness, were the United States and France? The US has focused aid on Egypt, Ethiopia and Sudan, whereas France’s main aid recipients have been Morocco, Mayotte and Senegal.