Mari Kiviniemi, Finland's Minister of Public Administration & Local Government©Finnish government
The global economic crisis is affecting families and communities across the planet. With regions bearing the brunt of the crisis, affecting businesses, jobs and people generally, regional policies are very much part of the solution.(2753 words)
When G20 regulators met in Pittsburgh in September 2009–it had taken them a full year to react to the collapse of Lehman Brothers–they set out an ambitious financial reform agenda. No stone would be left unturned, no shadow in the banking system unexposed. Action would cover all financial market segments and players, and lessons would be learned from the crisis to ensure that the 2008 debacle never happened again.(1247 words)
In 1994, a simple disagreement in a marketplace in Ghana over the price of a guinea fowl turned ugly. The quarrel led to the violent death of one person, which provoked subsequent killings and then escalated into a cycle of revenge attacks. The dispute quickly grew to become what is today known as the Guinea Fowl War. By the time the Ghanaian military restored order, more than 400 villages had been burned and over 15 000 people are thought to have been killed.(348 words)
Major events, like the Great East Japan earthquake or indeed the euro crisis, can have important ripple effects that spread well beyond the areas immediately concerned. More recently, the budget crisis that resulted in the shutdown of large parts of the US government and public services has raised the spectre of a default, the first in the country’s history.(349 words)
South Africa’s former president, Nelson Mandela, holds up a mobile phone in London, 21 October 2003. Using his old convict number 46664 from Robben Island, Mr Mandela helped launch a global phone and internet campaign to raise awareness about AIDs. Originally published in OECD Observer No 240/241, December 2003
Read "President Nelson Mandela: Some personal reflections", by Ian Goldin, Professor of Globalisation and Development, and Director, Oxford Martin School, University of Oxford
See also www.oecd.org/southafrica/
The Organisation for Economic Co-operation and Development (OECD) has long played a leading role in facilitating the exchange of tax information by tax authorities. The publication on 18 June of a proposed framework for developing a standard multilateral model for automatic exchange of financial account information was another significant milestone in the broader conversation about tax information exchange and transparency.(671 words)
Insecurity and conflict hinder human, and economic development. The Saharo-Sahelian region today presents some of the most daunting global security threats, which seriously undermine the stability and development of the region. The 2012-2013 crisis in northern Mali, though centred in one nation, epitomises the wider, cross-border dimension of these challenges. Here we point to some of the available policy responses towards their resolution.(875 words)
The Russian Federation took over the G20 presidency on 1 December 2012, a time when all international organisations and countries had downgraded their growth forecasts for the year ahead. Against this background and the need for urgent and co-ordinated policy action to put the recovery back on track, we decided to refocus the G20 agenda on the issue of growth and jobs, and to work on very concrete actions and commitments for G20 leaders to discuss and possibly endorse at the Saint Petersburg summit in September 2013.(1451 words)
One of the biggest targets for reform in the pursuit of leaner government budgets is public sector pay and performance. Because of the crisis, some countries have frozen or even reduced salaries, while others have preferred to reduce benefits, even pensions. Others have decided to do nothing for the moment.(314 words)
Trust in leaders
Apparently, the United States enjoys a surplus of deficits. President Obama’s first State of the Union address warned that we are weakened and endangered not only by our financial deficit, but also by a deficit in trust.
Trust comes from within
Russians are becoming increasingly active in the country’s social arena. While activists remain a small but growing and visible minority of citizens looking for changes in governance, many more are becoming involved in the day-to-day affairs of their communities.
The Arab Spring and the rise of new social and democratic movements throughout large parts of the Middle East and North Africa (MENA) may not have changed the world quite as much as millions had hoped, but at least they gave a new impetus to the use of information and communications technology and the potential of “e-government” to foster participation and engagement, increase transparency and restore public trust.(381 words)
Whether you blame poor regulation, sloppy governance, greed or bad luck, banks were frontline culprits in causing the crisis. Governments have been working on reforms to fix the financial sector and improve governance, but a lot more work remains to be done. Some OECD principles can help.(1313 words)
Growth is not enough
Brazil’s labour leaders have long argued against pursuing economic growth for its own sake. What matters most, they believe, is not the size of the economic pie but how it’s carved up. In recent years, calls for social justice have increasingly informed policy in Brazil, bringing about a veritable “revolution” in the economy.
There are good reasons why the public has lost confidence in banking and finance. Two issues in particular must be addressed before it can be restored– moral hazard and conflict of interest. Reforms should ensure that banks and bankers–not taxpayers–pay the price of failure and are held fully accountable for their actions.
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.(856 words)
A recipe for trust
Have the policy errors that contributed to the global economic crisis been rectified? Sharan Burrow, who heads the International Trade Union Confederation, shares her vision for building trust and restoring confidence in the countries still suffering from the crisis.
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.
The cost of mistrust
Trust is at the heart of today’s complex global economy. But, paradoxically, trust is also in increasingly short supply in many of our societies, especially in our attitudes towards big business, parliaments and governments. This decline threatens our capacity to tackle some of today’s key challenges.
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.
Climate change won't wait
The European Union may be facing some difficult economic challenges, but that's no excuse for not acting now to create an economy based on resource efficiency and low-carbon development. The benefits are potentially enormous, including lower greenhouse gas emissions, more efficient use of energy and resources, and rising growth and innovation.
Science and technology play a central role in our society. They are part of everybody’s life, they help to tackle the grand challenges of humankind and they create innovation and jobs and improve quality of life. Science and technology are part of our culture, and in essence define us as a species that “wants to know”–hence why we are called Homo sapiens. But do we really give science its proper value when it comes to taking political decisions?(756 words)
People looking for models of public governance reform may not immediately think of France, but perhaps they should think again. In July 2007, France launched a reform programme called “General Review of Public Policies” (Révision Générale des Politiques Publiques, RGPP). Implemented at central government level, it adopts a novel approach that could prove a useful model for other OECD countries.(308 words)
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.(977 words)
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.(664 words)
OECD Secretary-General Angel Gurría has congratulated Barack Obama on his re-election as US president. Mr Gurría said the OECD was proud to have worked with President Obama and his team over the past four years, both on the home front and in international fora such as the G8 and G20 (our photo).(145 words)
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.(294 words)
A crisis may focus minds, but it often takes more than that to believe that change is possible. Citizens worldwide have made just that leap of faith. In OECD member countries, a grassroots movement has manifested itself in the overnight occupation of public space and the exercise of direct democracy on the model of what happened in city squares across Spain just over a year ago. After those demonstrations reached Wall Street, Occupy went global and I have been fortunate enough to be involved with the movement as it developed in London.(1068 words)
Brazil has experienced a considerable shift over the last decade as a result of its economic growth. Social inequality has decreased and income distribution has become more evenly distributed. These tangible changes are reflected in the increased confidence of the Brazilian population. Demand is higher and priorities have changed, leading to a change in both the government and the private sector as well.(782 words)
“Wise men don’t need advice. Fools won’t take it,” said Benjamin Franklin. Yet, from Machiavelli through Richelieu to Kissinger, people in power have always relied on good advice from people they trust. But where should the line be drawn (rather than blurred) between influence and intrigue, cost and benefit?(343 words)
The economic crisis has been rich in history-defining images, from bank collapses and house foreclosures to street protests and growing lines of the unemployed. In 2011 one image stands out: that of protestors “occupying” major financial districts around the world. These protesters are demonstrating against a system that they accuse of having enriched the few at the expense of those at the bottom of the economic ladder.(1515 words)
The continuity of our societies and the sustainability of our planet will necessarily depend on how we, as a collective, can devise the solutions to the paramount and multifaceted difficulties that have arisen from the changes wrought by the Industrial Revolution. In fact, if we are to successfully transform these challenges into opportunities, what we need is nothing short of another revolution. And in today’s revolution the bayonets, unquestionably, need to be green.(1008 words)
Economic growth over the past decades has led to improved quality of life, increased prosperity and longer, healthier lives in nearly all countries. Resource constraints are making us realise that to continue to enjoy these benefits we will have to change course towards more sustainable or greener growth.(893 words)
Energy markets in 2012, like the broader economic picture, are marked by significant uncertainty. From a policy perspective, global macroeconomic concerns in 2011 diverted attention away from energy policy and could do the same this year. That could have worrying impacts on policy progress, especially as recent months have ushered in record carbon dioxide emissions, worsening energy efficiency and sustained high oil prices.(932 words)
Frustrated citizens are asking their governments: “When will we see effective policies to support economic growth and generate jobs?” There is an endless debate in individual countries and at the international level, but policy responses to the crisis continue to appear fragmented, timid and sometimes incoherent.(938 words)
The OECD Guidelines for Multinational Enterprises have just been updated. What are the main changes and how might they affect international corporate behaviour?(1482 words)
Bribery is a modern day scourge on international trade. At a time when so many people are struggling through an economic downturn, bribery is a very real disease threatening our prosperity. It poses a serious challenge to the development of economies and contributes to market failure. It distorts competition, damages free enterprise and blights business. It stifles talent and innovation and kills entrepreneurship. In many cases it is the poorest in society who are hit the hardest(711 words)
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.(1068 words)
How can we all learn from a crisis? Today, we find ourselves in a disappointing, if not altogether unexpected, predicament. The very governments who took bold and decisive action in the period of the financial crisis 2008-09 to bail out banks and keep financial markets alive now find themselves on the receiving end of severe punishment from financial markets. How could this be?(1497 words)
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.(1541 words)
Will the world economy brighten in 2014 compared with 2013?