"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 in Africa, Asia and Latin America.
Assets you cannot touch lie behind successful innovations. What are they and how can policy make a difference?
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.
Interview with James M. Flaherty, Minister of Finance, Government of Canada
This year we are celebrating the 50th 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.
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.
“The government’s top priority is reducing the nation’s deficit and returning Britain to strong and sustainable growth. That means the right economic policies at home and creating the right economic environment abroad.
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?
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.
Microcredit has become a popular way to finance small businesses and local development projects, particularly in poorer countries. Economist, author, founder and first chairman of the European Bank for Reconstruction and Development (EBRD), Jacques Attali is founder of PlaNet Finance, which runs microfinance programmes in over 80 countries. In the run up to the OECD Forum in May 2011 where he is due to speak, Mr Attali talked to the OECD Observer.
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