©Roy Philippe/HEMIS.FR

In September 2017, the United Nations (UN) adopted a dedicated Sustainable Development Goal (SDG) on water. For years water had been under-valued, under-priced and too often taken for granted, so Goal 6 on water and sanitation was a momentous recognition of water’s crucial policy importance. Though just one of 17 SDGs, this goal also sits at the heart of many of them: water is essential for food security, health, cities, sustainable consumption and production, and terrestrial ecosystems. 

At the 2009 UNFCCC negotiations, developed countries committed to mobilising US$100 billion each year for climate action in developing countries by 2020. As negotiations on a new climate agreement intensified in the lead-up to COP 21 in 2015, an understanding of the progress made towards this commitment was important in keeping everyone around the table. In this context, the OECD estimated that US$62 billion had been mobilised in 2014, up by US$10 billion since 2013. Updated estimates towards the US$100 billion commitment will be needed in the lead-up to 2020, along with new information about climate finance beyond this goal. But further progress relies on robust and transparent tracking of the different streams of climate finance. 

Cultura/Janie Airey

There is enough capital out there and renewable energy technologies have become more cost-competitive, so why is investment still wanting? Policymakers hold the key.

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Fossil fuel subsidies keep fuel prices artificially low, and weigh heavily on government budgets and on the climate too. Phasing out these subsidies will help reduce CO2 emissions and possibly raise public revenues as well.

©David Rooney

Blended finance is not a new concept but it certainly has returned as a new buzzword. 

©Finbarr O'Reilly/Reuters

Every year, millions of people in the Sahel and West Africa face hunger as levels of food and nutrition insecurity become critical. It is a familiar problem that tends to be dealt with within a top-down, national framework. Yet purely national analyses, rather than territorial and local ones, can mask pockets of poverty, hunger and malnutrition concentrated in specific geographic areas. If we look, for example, at stunting, a chronic state of undernutrition among children under the age of five, the national average in Benin is 34%. 

This week, troubling accounts of slave auctions in Libya have circulated in the press. Putting a monetary price on human life is wrong. So is devaluing human labour to the point that they work in slave conditions. Global supply chains sometimes allow that to happen because of little or no oversight. Read what OECD’s Chief of Staff and Sherpa to the G20, Gabriela Ramos, writes about modern slavery. Read post here.

©David Rooney

A systems approach can be applied to more complex administrative challenges, from transport and tourism to the environment.

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BEPS multilateral instrument will close loopholes in thousands of tax treaties worldwide.

©Shutterstock

“Employment rates for women have grown faster and are above where they were in 2008, but employment rates for men have not even gotten back to where they were.” This remark was made by the OECD chief economist, Catherine Mann, after delivering an update on the global economic outlook in late September. Speaking to the BBC, Ms Mann added, “Women are paid less than men. You've got more women employed, as compared to men, so the algebra works out to be a downward pressure on wage growth.”

With all the recent attention on driverless cars one would be forgiven for thinking that autonomous vehicles were a novelty item. Yet, driverless trucks have been used in mines and ports for some time now. In 2016, a US start-up boasted its first commercial delivery (of beer cans) using a highly automated truck. The on-board system handled all the motorway sections of the journey without a driver. It is likely that trucks will be the first fully driverless vehicles on our public roads.

Every worker and employer is directly affected by taxes on wages. Taxation is one of the principal ways we finance public services. It also helps us achieve important social objectives, such as redistributing wealth to address inequalities. But as the OECD’s annual Taxing Wages points out, tax policies on labour income may have an impact on individuals’ behaviour  with respect to the labour market or their consumption habits. 

After an extended period of relatively strong growth, the countries of Eurasia have recently experienced a series of powerful external economic shocks.* Lower global commodity prices, recession in Russia, moderate growth in China and subdued economic prospects in many west European economies have all hit Eurasia hard. The region’s overall GDP fell in 2015 for only the second time in two decades (the first time was in 2009), and growth in 2016 was weak, according to IMF estimates, with accelerations in a few countries offset by downturns elsewhere. The recovery seems to have continued into 2017 but it is uneven and modest at best, and growth is far below the rates achieved in the 2000s.

Why do children in their last year of pre-primary education spend so much time playing and the year after sitting in large classes listening to their teacher? Why do we pay the teachers of our youngest children so much less than we pay the teachers of our oldest children? Why do first-year primary teachers know so little about the children from whom their pre-primary teachers have learned so much? The simple answer is that that’s the way we have always done this.

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With new business models emerging, competition in the electricity sector is beginning to stir.

©OECD Observer/Reuters*

Public trust is not doing well in many modern democracies. If it is the canary in the coal mine, in survey after survey, the canary has been brought up wheezing at best.

If you have had the impression that there is more violence in the world nowadays, you may not be wrong. According to States of Fragility 2016: Understanding Violence, the world has been becoming more violent for a decade; indeed, according to the Uppsala University Conflict Data Program, 2014 and 2015 marked the second and third worst years in terms of fatalities since the Cold War ended a quarter of a century ago. As 22% of the global population currently live in fragile contexts and their proportion is anticipated to rise to 32% by 2050, the links between fragility and violence are becoming increasingly clear. 

Click to read our seasonal cartoon. By Stik, especially for the OECD Observer

The OECD Observer team would like to wish all our readers a very happy festive season, and a safe and prosperous New Year.

Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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