©Deutsche Bank

The new euro architecture that is to come into effect from July still suffers from shortcomings, and problem countries have yet to prove that they can survive within the euro says Thomas Mayer. It would be premature to sound the all clear on the euro crisis. 

©Reuters/François Lenoir

Poland is not yet a member of the euro area, though is watching the euro situation with close interest. 

©Srdjan Zivulovic/Reuters

The euro area has been at the centre of the global financial storms for two years. Some serious observers have begun to question whether the euro area will survive these currents. The recently published OECD Economic Survey of the Euro Area shows how Europe’s bold experiment in economic integration can be made to work. 

Globalisation has always been a process of far-reaching and often unexpected change, as well as geographical shifts in power, and this is reflected in the rise and fall of great cities. What lessons can we draw for the future?

©Rick Winning RTW/REUTERS

Since the 2008 financial crisis, strains in the financial sector and in government balance sheets mean there is less and less supply of long-term capital. This has profound implications for growth and financial stability. Policymakers should take action. 

©OECD

The OECD Better Life Initiative can make a difference to policies, and to people’s lives too, though that also depends on participation. 

©REUTERS/Carlos Barria

Was a major lapse of consumer protection at the heart of the subprime crisis? For consumer advocate Ira Rheingold, only better financial regulation and consumer protection will prevent future meltdowns. 

©www.susannawyatt.com

When it comes to fixing the economy, could the collective efforts of business and other interested parties be a better solution than passing new laws?

©INET

Financial market overhang rather than excessive fiscal spending threatens confidence today. And there are sounds investments which can make society healthier.

The economic headlines may have brightened somewhat in 2012, but an OECD Spring this is not. The economic and financial crisis has left deep scars that will take a long time to heal and which will shape policymaking for years to come. 

Click to enlarge

Brazil needs to invest heavily in basic infrastructure to support its expanding economy. Progress is being made, but it is a daunting task. 

©REUTERS/Paulo Whitaker

Anyone wishing to gauge Brazil’s status as one of the world’s most lucrative emerging markets should look at the growth of its financial sector. 

©Reuters

Brazil has emerged as a global economic player and expectations are rising of further success ahead. But there are several tests to pass along the way. 

Increasing citizens’ input to policymaking is one of the goals of the new indicators of well-being developed to make up for the inadequacies of GDP as an indicator. Unfortunately the latter leaves out many factors which clearly play a fundamental role in all of our daily lives, ranging from health to the quality of the environment, education, housing or even social ties and security. It is therefore crucial that the public at large understand how the new indicators designed to supplement GDP are constructed and interpreted, and if possible the public should be fully involved in the process. 

Tackling inequality

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. 

Why does this matter to policy makers? Inequality is a critical social and economic challenge. Widening disparities weaken the structures that hold our societies together and threaten our ability to move forward. This effect has become even more apparent with the current prolonged crisis, which has been felt by a wide range of income groups throughout the OECD area. 

More...

How can the euro crisis unfold? For David McWilliams, Irish economist and best-selling author, the answer is probably a two-speed arrangement between core and periphery. 

©Luke MacGregor/Reuters

The corporate world is far from making the most out of gender diversity in the workplace. But some businesses are finding innovative ways to change this. 

©Yuriko Nakano/Reuters

The global economy took a sharp turn for the worse following the collapse of Lehman Brothers in September 2008, and today it is increasingly apparent that the crisis has entered its second round. This time we are facing a combination of low growth and trouble in the financial sector, just as governments find themselves running out of economic policy options. 

John Evans © OECD

Perhaps one of the biggest weaknesses in traditional economic thinking is the belief that GDP per capita is the only relevant benchmark of economic performance.
Yet, there is compelling evidence to show that increases in GDP have little impact on happiness or life chances. 

A. Krueger ©L.Downing/Reuters

As the US emerges from the deepest recession since the Great Depression, it is critical to take steps that will lead not only to recovery, but also to more robust economic growth with rising employment and broadly shared income gains. 

Yukon Huang

Apprehensions about China’s unbalanced growth process concern everybody, but its causes are often misunderstood.
What can the Chinese leadership do to rebalance investment and consumption? 

Pier Carlo Padoan ©OECD

The history of economic policymaking has been marked by a succession of “paradigms” defining the goals of economic policy and the instruments used to attain them.
OECD Chief Economist Pier Carlo Padoan looks at where we go from here.

"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.

E. Ostrom ©C. Meyer/Indiana University

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).


Economic data

GDP growth: +0.6% Q2 2018 year-on-year
Consumer price inflation: 2.9% Sept 2018 annual
Trade: +2.7% exp, +3.0% imp, Q4 2017
Unemployment: 5.2% Sept 2018
Last update: 13 Nov 2018

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  • Globalisation will continue and get stronger, and how to harness it is the great challenge, says OECD Secretary-General Gurría on Bloomberg TV. Watch the interview here.
  • OECD Secretary-General Angel Gurría with UN Secretary-General António Guterres at the 73rd Session of the UN General Assembly, in New York City.
  • The new OECD Observer Crossword, with Myles Mellor. Try it online!
  • Watch the webcast of the final press conference of the OECD annual ministerial meeting 2018.
  • Listen to the "Robots are coming for our jobs" episode of The Guardian's "Chips with Everything podcast", in which The Guardian’s economics editor, Larry Elliott, and Jeremy Wyatt, a professor of robotics and artificial intelligence at the University of Birmingham, and Jordan Erica Webber, freelance journalist, discuss the findings of the new OECD report "Automation, skills use and training". Listen here.
  • Do we really know the difference between right and wrong? Alison Taylor of BSR and Susan Hawley of Corruption Watch tell us why it matters to play by the rules. Watch the recording of our Facebook live interview here.
  • Has public decision-making been hijacked by a privileged few? Watch the recording of our Facebook live interview with Stav Shaffir, MK (Zionist Union) Chair of the Knesset Committee on Transparency here.
  • Can a nudge help us make more ethical decisions? Watch the recording of our Facebook live interview with Saugatto Datta, managing director at ideas42 here.
  • The fight against tax evasion is gaining further momentum as Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama and Tunisia signed the BEPS Multilateral Convention on 24 January, bringing the total number of signatories to 78. The Convention strengthens existing tax treaties and reduces opportunities for tax avoidance by multinational enterprises.
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  • Do you trust your government? The OECD’s How's life 2017 report finds that only 38% of people in OECD countries trust their government. How can we improve our old "Social contract?" Read more.
  • Globalisation’s many benefits have been unequally shared, and public policy has struggled to keep up with a rapidly-shifting world. The OECD is working alongside governments and international organisations to help improve and harness the gains while tackling the root causes of inequality, and ensuring a level playing field globally. Please watch.
  • Checking out the job situation with the OECD scoreboard of labour market performances: do you want to know how your country compares with neighbours and competitors on income levels or employment?
  • Trade is an important point of focus in today’s international economy. This video presents facts and statistics from OECD’s most recent publications on this topic.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .
  • Visit the OECD Gender Data Portal. Selected indicators shedding light on gender inequalities in education, employment and entrepreneurship.

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