The world is still repairing the damage done to employment prospects and social equality by the crisis. Governments are trying to create not just more jobs, but better jobs. A new OECD framework helps them to define what job quality means and to measure whether their policies are succeeding.
Challenging free trade orthodoxy is a heavy lift in our political culture; anything that has been in place for that long takes on an air of inevitability. But, critical as these shifts are, they are not enough to lower emissions in time. To do that, we will need to confront a logic even more entrenched than free trade—the logic of indiscriminate economic growth. This idea has understandably inspired a good deal of resistance among more liberal climate watchers, who insist that the task is merely to paint our current growth-based economic model green, so it's worth examining the numbers behind the claim.
Financial crises do more than impose huge costs: they have bigger and more insidious effects. We face big challenges in maintaining the supply of global public goods as the world integrates. But these challenges will not be managed successfully if we do not first overcome the legacy of the crisis. Moreover, all this must be done at a time of transition in global power and responsibility from a world dominated by Western powers to one in which new powers have arisen.
What if economics were within everyone’s grasp? Although you may feel that discussing Greece’s debt sustainability or Europe’s ageing problem is beyond your capabilities, Cambridge scholar Ha-Joon Chang strives to prove that you actually can.
In October 2014 we wrote that deflationary risks had risen in the euro area and warned of the dangers deflation poses for the economy. Where do we stand now? Has deflation been avoided or has it started to bite?
"There is no such thing as a debt crisis: The Euro Crisis, Asia's Woes and America's Dilemma in a Global Context". This was the title of a presentation given by economist Yanis Varoufakis at the OECD in March 2013, nearly two years before he became Greece's finance minister. Part of The Coffees of the Secretary-General series, you can read the complete transcript of Mr Varoufakis's presentation below.
The GDP growth story over the past year or two has been one of diverging trends, with relative buoyancy returning to economies such as Sweden, the UK and the US, but with the euro area still looking off colour. How have the crisis and subsequent economic growth patterns affected the actual size of each country’s economy compared to 2007? Have OECD countries recovered their pre-crisis levels of GDP?
Innovation economist Mariana Mazzucato presented her book "The Entrepreneurial State: debunking public vs. private sector myths", at the OECD on 28 May 2014. Part of The Coffees of the Secretary-General series, you can read the complete transcript of Ms Mazzucato’s presentation below.
Since 2009 the French government launched a new “auto-entrepreneurs’’ status to help small, often one-person, businesses below a certain earnings threshold to bypass many formalities of registration, in an effort to stimulate entrepreneurial activity and jobs. By mid-2014, the number of auto-entrepreneurs reached nearly 1 million, according to a French business creation agency, APCE. However, according to the national statistics office, INSEE, most of these businesses have made little if any money at all. The crisis has hardly helped, but is there a recipe for success?
“What an amazing week. … I’m doing my best to come back down to earth and get back to work.” And so it was, in less than 140 characters that Frenchman Jean Tirole (@JeanTirole) tweeted his excitement after learning that he had won the 2014 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
In a time of economic turmoil, global tourism is still faring well: over 1.1 billion tourists traveled abroad in 2014, according to the World Tourism Organization (UNWTO). This is almost 5% more than in 2013, the organisation said in a press release.
Star economist Thomas Piketty presented the English version of his global bestseller, "Capital in the Twenty-First Century", at the OECD on 3 July 2014 as part of The Coffees of the Secretary-General series. Read the complete transcript of Mr Piketty's presentation below.
China’s economy is the second largest in the world, but can its currency, renminbi, compete with the US dollar as a global currency?
Let’s face it: the bulk of small and medium-sized entreprises (SMEs) are still financed mainly by bank credit. However, as bank finance is harder to come by in the current post-crisis environment, fostering non-bank financing alternatives may help closing an SME financing gap. The OECD has been looking into such issues, using input from the private sector via its financial roundtables.
Access to financing can contribute to inclusive social and economic development. How might digital transactions help? Here’s how.
If you’ve been following the income inequality debate, you’ll know there’s been much discussion on the question in the headline above. Until just a few years ago, it’s probably fair to say that mainstream opinion leaned towards the “good for growth” side of the debate. Yes, inequality might leave a bad taste in the mouth, but it was worth it if it meant a strong economy.
Thanks to smart online and phone technologies, dynamic new business platforms that are altering the parametres in property, transport and other service-driven markets are fast emerging.
Companies such as Airbnb (helping you to rent or let out a room) and TaskRabbit (helping you pack boxes, walk the dog and other personal chores) have hit the headlines not just for their new business models, but their disruptive effects on established markets and services. Proponents say this “sharing” economy creates more choice and control for customers, while critics say it unfairly undermines competition.
Policymakers are now taking a closer look at how fair the sharing economy really is and to see if any rules need to be rewritten.
We asked the founder of France’s BlaBlaCar, Frederic Mazzella, how his ride-sharing company has evolved to become a prime example of the sharing economy.
Overall, the global economy continues to run in low gear. At 3% over the past seven years, the pace of global growth is more than 1 percentage point below the 2000-07 period, and about three-quarters of a percentage point below the average of the 15 years prior to the financial crisis. Global trade growth also remains below trend.
The terrorist murders of 17 people in Paris on 7, 8 and 9 January were not only a human tragedy. They were a direct attack on the values of living together in the free, law-abiding, pluralistic societies we hold dear.
Compared to their parents, German baby-boomers are substantially more unequal in terms of long-term earnings, are subject to a much stronger pay uncertainty, and are considerably more likely to experience long spells of unemployment.
After three years of sacrifice, hard work and difficult reform, Ireland has fought its way out of the depths of the financial crisis to become one of the fastest-growing economies in Europe and one of the best countries in the world in which to do business.
The world economy remains stuck in low gear, and a "stronger policy response" is needed, particularly to boost demand in the euro area, OECD Chief Economist Catherine L. Mann said today, 25 November.
Australians are well-known for being a sports-mad people. Some 43% of the adult population attended at least one sporting event in 2009-10 and national pride is often rooted in the latest successes of its national sports teams and international sports stars. Beating the All Blacks in rugby union (a rare event these days) or the English in cricket (a more even match) will significantly lift the national mood. After Australia II won the America’s Cup sailing race in 1983, Prime Minister Bob Hawke famously declared an effective public holiday: “Any boss who sacks a worker for not turning up today is a bum.”
Overhauling the global tax system and its practices is fundamental if we are to deliver stronger, cleaner and fairer growth for a post-Crisis world. The Secretary-General explains how the OECD, with the support of the G20, is finding ways to fix the current international tax situation.
The Australian economy has been one of the OECD’s best performing economies, though it now faces some major challenges.
As G20 leaders look distraught at a global economy that is faced with weak growth, high unemployment and rising income inequality, they should repeat to themselves that this is not inevitable. The International Monetary Fund (IMF), while putting out another downward revision of growth forecasts, admitted that recovery is too slow and fragile, while recognising the problem of income inequality. The OECD, in its reports on New Approaches and Economic Challenges (NAEC) and its 2014 OECD Employment Outlook, acknowledges that rising inequality affects economic growth and social cohesion, sapping trust in markets and institutions.
G20 countries are taking action to lift growth in the world economy. Will their commitments be enough?
Each G20 presidency faces its own challenges. A presidency must respond to global economic conditions, it must build on previous work, and it must seize opportunities to progress with reforms where members can reach consensus.
The Australian G20 presidency has made a critical and decisive contribution to reinforcing the effectiveness and impact of the Group of 20 (G20). Under Australia’s chairmanship, the work of the G20 has gained in coherence and strength, which should reinforce our joint efforts to boost and sustain future growth. Our organisation is proud to have contributed significantly to these achievements.
Over the past few years we have witnessed some challenging times. When Australia took the reins of the G20 presidency nearly a year ago, the global economy was still recovering from one of the most severe recessions of modern times.
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