OECD will work with governments in a two-strand approach to develop policies for tighter financial market oversight and risk management, and for economic recovery, Secretary-General Angel Gurría has announced. The plan will form part of a comprehensive contribution to the G20’s Action Plan agreed in mid-November, he said.
The first strand of the OECD contribution to the G20 Action Plan will address regulations and incentives in the financial sector, with a view to ensuring that market operators act in a tighter oversight and risk management environment, Mr Gurría explained. The OECD’s committees will be working together to address the challenges and coherence of financial regulations, competition, investment flows, but also taxes, in particular tax transparency as requested by the G20, and corporate governance, as corporate governance failures in the boards of directors of financial institutions are one of the factors that led to the crisis.The second strand will take a longer-term perspective by focusing on restoring the conditions for sustainable economic growth, he added. “One element to jumpstart the recovery is the fiscal stimulus that some countries have already announced and which the G20 addressed over the weekend. But we need a comprehensive strategy, keeping markets open and strengthening the implementation of productivity-enhancing reforms. Another element has to be innovation and investment in human capital.”In this context, OECD will focus on restoring the conditions for sustainable economic growth. This will include cost-effective policy packages to mitigate climate change, which OECD will submit to participants at upcoming U.N. meetings on climate change in Poznan, Poland, in December and in Copenhagen at the end of 2009.For more details of the plan, click here
©OECD Observer No 270/271 December 2008-January 2009