Click to enlarge. By StiK, especially for the OECD Observer

Li Keqiang, premier of the People’s Republic of China, is greeted by OECD Secretary-General Angel Gurría, on a historical official visit of to the organisation, 1 July 2015. OECD

The People’s Republic of China joined the OECD Development Centre on 1 July, in a move described as an important step in support of China’s transformation and transition to a new growth model.

African Economic Outlook 2015/OECD

The financial landscape has changed considerably in Africa since 2000. Private external flows in the form of investment and remittances now drive growth in external finance, according to the African Economic Outlook 2015. Foreign investments are expected to reach US$73.5 billion in 2015, underpinned by increasing greenfield investment from China, India and South Africa.

OECD

A warming planet and a flat world economy have propelled the issue of investment in clean energy to the top of the policy agenda. The question has become all the more crucial in view of the landmark global summit on climate change to be held in Paris in December 2015. 

David Rooney/OECD Observer

Most people probably scratch their heads when it comes to filling out their tax returns. But whatever
challenges ordinary taxpayers face are nothing compared to what tax officials must confront, particularly when dealing with multinational firms.

David Rooney/OECD Observer

Meeting budgetary targets is hard enough in any country, but for developing countries struggling to lift their economies to a higher stage of development, it can seem a near impossible task. Nevertheless, governments and local authorities everywhere in the world have a duty to provide proper public and social services for their citizens, and infrastructure that will attract investors. Tax revenues are therefore vital for meeting public demands as well as development aspirations. As a general rule of thumb, a stable and predictable budgetary framework helps foster growth and, in the longer term, reduces dependence on foreign financing, be it public or private. Taxation is a bedrock of “good government” and a driving force for wider reforms. However, devising the right framework and approach to tax is not easy, from getting the tax levels right to ensuring skills are in place to devise and implement them.

In my first climate change lecture, nearly two years ago, my key message was that meeting the challenge of climate change required us to achieve zero net greenhouse emissions globally by the end of this century. 

Integrated planning, supported by clear public policies, new technologies and ways to safeguard the environment, is the path towards sustainable mobility in cities in Brazil, as elsewhere.

“Neither economists nor market participants, nor indeed governments foresaw a financial crisis of the type and magnitude we have now. The collapse of trust and subsequent credit freeze in the wake of the Lehman Brothers collapse was a shock.”

©Government of the Netherlands

The Netherlands last chaired the OECD Ministerial Council Meeting in 1991, a year when advanced economies accounted for nearly two thirds of global GDP and almost two billion people were living in extreme poverty. The world looks very different today. Emerging markets now account for more than half of global GDP and the number of people living in extreme poverty is down to one billion. This Millennium Development Goal has been reached, and that is good news. There is still a formidable challenge ahead, however, in the areas of poverty reduction, sustainability and inclusivity.

©Oxfam

According to shocking new research by Oxfam, the world’s richest 1% will, on current trends, own more than half the world’s wealth by 2016.

OECD

In the coming months, the international community will gather three times and on three different continents, to build a sustainable development agenda for generations to come.

His Royal Highness The Prince of Wales ©John Paul/Australian Women's Weekly

The international discussions under way in the course of this vital year–including July’s Finance for Development Meeting in Addis Ababa, the agreement of a new set of universal Sustainable Development Goals at the UN in September and the climate change summit in Paris at the end of 2015–represent a remarkable and unprecedented opportunity to establish what might be called a “Magna Carta for the earth” for our times.

©Roy Philippe/HEMIS.FR

How to improve water systems is one challenge; financing them is another. Public authorities in most countries play the main role in implementing and funding water infrastructure, but it is a model that is under increasing pressure, with government budgets stretched and banks still prudent about issuing credit. 

Charlotte Moreau

Water holds huge potential for economic, social and individual betterment. There are challenges to confront, but also opportunities. With the right approach, water could be a harbinger of progress. 

©WorldBank

Poverty has been halved in less than 25 years worldwide. The enormous progress over the past few decades is mainly due to rapid economic growth in the South. China’s economy grew by 10% for decades and 600 million people were consequently brought out of poverty.

©WorldBank

This will be “the mother of all years for summits on international development,” says Kevin Watkins*, Executive Director of the UK’s Overseas Development Institute (ODI). He’s not wrong.

Would you like to smell like Zinedine Zidane? A few years ago, a French perfume maker thought many of us would, and paid the football star to sell its manly mixture.

Not much good has come from the Ebola crisis, save this: It has raised awareness of the fact that we already have a weapon in our hands that could help fight such epidemics – our mobile phones.

©OECD/Marco Illuminati

Eight giant balloons from Japan floated in the shadow of the Eiffel Tower on the weekend of 30 August, a reminder of one of the worst natural disasters of recent times–and of the determination of survivors to rebuild their region.

©Dennis George

Although South Africa has had an impressive track record among emerging economies, it has recently hit economic difficulties. We asked FEDUSA General Secretary, Dennis George, what have been the effects, and what steps the G20 and South African government must take to return to the path of healthy growth.

A little over a year ago the OECD and the World Trade Organization (WTO) launched Trade in Value-Added (TiVA), a new database on trade measured in value-added terms. The evidence that we have unlocked using TiVA has begun to revolutionise our understanding of what is happening in global trade, investment and production. Take global value chains (GVCs), which are a dominant feature of the global economy today. Goods produced in the European Union (EU) and exported to the United States may include raw materials from China and Malaysia, and use services from Japan and India. Goods and services are no longer produced by a firm in one country and sold to consumers in another; production is fragmented around the world, while components cross borders multiple times as value is added to output along the way.

Former Ambassador Seiichiro Noboru urges the OECD to expand by including the BRIICS* ("Serving a new world" in OECD Observer No 298, Q1 2014). Only when these countries adopt OECD best practices can governments and firms enjoy a true level playing field. As the organisation helps aspiring members to adhere with OECD instruments, important reforms can be pushed forward.

The most prominent goal of development has been to eradicate extreme poverty. Both literally and figuratively this goal has been part of a prescriptive stroll over the past two decades, moving in a linear fashion.

In preparation for the 2015 Global Forum on Development, which will focus on how access to financing can contribute to inclusive social and economic development, the OECD Development Centre and the United Nations Capital Development Fund (UNCDF) have developed a series of articles exploring the key issues and dimensions of financial inclusion. Today’s post from Sarah Bel of the UNCDF Better Than Cash Alliance and James Eberlein of the OECD Development Centre highlights some of the overarching themes related to financial literacy.

A truck drives through a special economic zone near Yangon and pas the flags of Myanmar and Japan, which has been a strong supporter of the OECD Southeast Asia Programme ©Soe Than Win/AFP

Southeast Asia, with more than half-a-billion people, is among the fastest growing regions in the world. However, levels of growth and prosperity within the region are very uneven. 

This post is from Juana de Catheu, founder of Development Results and Donata Garrasi, Peace-building Adviser in the OECD Development Co-operation Directorate. 

Click to enlarge. By StiK, especially for the OECD Observer.

Industrial policy is now back–unless, as economist Joseph Stiglitz says, it never really left. The third edition of Perspectives on Global Development from the OECD Development Centre demystifies industrial policies. Cambridge Professor Ha Joon Chang calls it a “landmark publication because it looks for ways to make industrial policy work better, rather than having an ideological debate on whether it exists and whether it can ever succeed.”

I am just starting to think about this question of how aid should be measured, so this article is very helpful background on Development Assistance Committee process and substance ("Development aid and finance: A defining moment", in No 294, Q1 2013). 

Economic data

GDP growth: +0.5% Q3 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: 22 Nov 2018

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  • 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.
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