OECD Yearbook 2011

BETTER POLICIES FOR BETTER LIVES

OECD Yearbook

OECD Yearbook 2011 BETTER POLICIES FOR BETTER LIVES What is the state of the world economy as we enter 2011? How has the worst economic crisis in our lifetimes affected the future? What must be done to build a stronger, cleaner and fairer world?

As the OECD marks its 50th anniversary, world leaders and top representatives from business, labour and civil society join OECD Secretary-General Angel Gurra and OECD experts to examine todays pressing issues in this inaugural OECD Yearbook 2011:

How should global governance adapt to shifting wealth?

How can we restore public fi nances and achieve sustainable growth?

What must be done to improve skills and cut unemployment?

How can we rebuild public trust in our economies and institutions?

What sources of growth can best build a cleaner, more prosperous future?

How can development be better promoted in the new global context?

In our special Leaders Forum, Frances President Nicolas Sarkozy, Japans Prime Minister Naoto Kan, Chiles President Sebastin Piera and Hungarys Prime Minister Viktor Orbn pay tribute to the OECDs achievements over the past 50 years and lay out their vision for the organisations expanding role in addressing global challenges.

The OECDs original mission, to develop the best public policies to improve peoples lives the world over, is as relevant today as it was 50 years ago. As a fragile recovery gets under way, the anniversary OECD Yearbook 2011 offers a timely opportunity to examine where we stand and assess solutions for the way ahead.

OECD Yearbook 2011ISBN 978-92-64-11264-3

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OECD Observer Nos. 282/283 January 2011ISSN 0029-7054

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OECD Yearbook2011


This work is published on the responsibility of the Secretary-General of the OECD. The

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ISBN 978-92-64-11264-3Revised Second edition (March 2011)Periodical: OECD ObserverISSN 0029-7054

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OECD 2011

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OECD Yearbook 2011 3

ContentsLEADERS FORUM06 Getting it right in 2011

Angel Gurra

10 Setting an example for progress

Nicolas Sarkozy, President of France

12 Anniversary tribute

Naoto Kan, Prime Minister of Japan

14 A 21st century revolution

Sebastin Piera, President of Chile

16 Mission possible

Viktor Orbn, Prime Minister of Hungary

RESTORING PUBLIC FINANCES19 Restoring public nances

20 Defying scal decits

21 Roundtable on public nances

France, Germany, Ireland, Korea, Mexico, New Zealand, Indonesia, South Africa

26 Tackling the budget problem

Pier Carlo Padoan

27 What about global imbalances?

28 The scal imperative

Jean-Claude Trichet, President, European Central Bank

29 Green tax potential

30 Aiming for the medium term

Stanley Fischer, Governor of the Bank of Israel

31 Business investment is picking up

32 Government budgets: Save or spend ?

Dae Whan Chang, Executive Chairman, World Knowledge Forum, and Publisher, Maeil Business Newspaper & TV

33 Budget treatment

34 Trimming pensions

BOOSTING JOBS AND SKILLS37 Boosting jobs and skills

38 Any collar you want

39 Working for the recovery

An interview with John Martin

41 Keeping Germany at work

42 The case for 21st century learning

Andreas Schleicher

44 Top of the class: OECD PISA 2009

45 Decent work is not a slogan

Sharan Burrow, General Secretary, International Trade Union Confederation (ITUC)

46 Mancession?

47 Out of work: A portrait

48 Looking after the future

STRENGTHENING GOVERNANCE, RESTORING TRUST51 Strengthening governance, restoring trust

52 A new era of global co-operation

Gabriela Ramos

55 Fixing nance: Few easy answers

William R. White, Chair of the OECD Economic and Development Review Committee

57 Financial reform: A start, but only a start

Amy Domini, Founder and CEO of Domini Social Investments

59 Tax evasion: Ready when the call came

Jerey Owens

60 Tax windfall

61 A new push on corruption

62 State and narrow

63 The Anti-Bribery Convention

64 South Africas ght against bribery

An interview with Masenyani Richard Baloyi, Minister for Public Service and Administration, South Africa

65 A new global governance?

66 Reform needs transparency

Huguette Labelle, Chair, Transparency International

67 Making multinational more responsible

68 Global business: To protect, respect and remedy

An interview with John Ruggie, UN Secretary-Generals Special Representative for Business and Human Rights

TAPPING NEW SOURCES OF GROWTH71 Tapping new sources of growth

72 Wanted: Women scientists

73 Roundtable: What new growth needs

Giuseppe Nicoletti, Andy Wycko, Mario Pezzini,

Carmel Cahill and Fatih Birol, International Energy Agency

77 City growth

John Mogk, Wayne State University Law School

79 New growth doesnt have to cost the earth

James P. Leape, Director General, WWF International

80 Fostering an ecosystem of innovation

Charles Beigbeder, Chairman of Gravitation, founder and non-executive Chairman of Poweo

81 Innovative lessons

82 For new growth, watch this space

Claire Jolly

83 How happy are you?

Kate Scrivens

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ADVANCING GLOBAL DEVELOPMENT85 Growth and developmentfor whom?

Stephen Gro

86 Africa: A source of growth for the 21st century?

David Batt and H.B. Solignac-Lecomte

88 The development aid story

OECD AT 5091 Foresight at 50: Looking back at looking forward

Barrie Stevens

94 50 years of reconciling the economy, nature and society

Ron Gass

97 A majestic start: How the OECD was won

100 John F. Kennedys vision

SPECIAL SECTION103 - 18 Country snapshots

OECD 2011

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As the worlds leading steel company, ArcelorMittal recognises the contribution the OECD has made to fostering an integrated and growing global economy.

Through its core values of Sustainability, Quality and Leadership, ArcelorMittal supports responsible economic growth that promotes the health, safety and wellbeing of its employees, contractors and the communities in which it operates.

Congratulations to the OECD on its 50th anniversary

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Getting it right in 2011

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We enter 2011 on a positive footing. Everyone realises that this recovery, fragile as it is, must be nurtured and strengthened if we are to build the bright future we all want.

8

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4HEWORLDECONOMYHASMADEGIANTSTRIDESINYEARS"UTITISAMORECOMPLEXWORLDANDTHECHALLENGESBEFOREUSAREASSERIOUSAS ANY WE HAVE FACED IN THE PAST 9ET THE GOALS OUR FOUNDERSSET FOR THIS ORGANISATION REMAIN TRUE TODAY )NDEED THE/%#$#ONVENTIONWHICHWASSIGNEDON$ECEMBERCOULDHAVEBEENWRITTEN PRECISELYWITH TODAYS CHALLENGES INMIND AND INPARTICULARWITHOURMAINOBJECTIVEOFPROMOTINGBETTERPOLICIESFORBETTERLIVES

6ISITWWWOECDORGSECRETARYGENERAL

While the scope of the OECDs work is vast and unique, maximising our eectiveness and relevance means that we must also become more global.

10

LEADERS FORUM

Setting an example for progress

/VER THE PAST YEARS THE /%#$ HAS UNDERGONE PROFOUNDCHANGESINORDERTOCOPEWITHTHEEMERGENCEOFNEWPOWERSANDABOVEALLNEWCHALLENGES)NWITHTHEFALLOFTHE"ERLINWALLANDTHEDISSOLUTIONOFTHE3OVIET5NIONTHE/%#$FORGEDNEWTIESWITHCOUNTRIESFRESHLYFREEDFROMTHEOPPRESSIONOFCOMMUNISM

%VENBEFORETHECONCEPTOFTHEEMERGINGCOUNTRYBECAMEPOPULARTHE ORGANISATION SUPPORTED THE EMERGENCE OF NEW POWERS ;=RECENTLY INCLUDING "RAZIL 2USSIA )NDIA )NDONESIA #HINA AND3OUTH!FRICA4HESECOUNTRIESALREADYACCOUNTFORMORETHANOFGLOBAL'$07ECANNOTIGNORETHESEIMPORTANTPLAYERS(OWCOULDTHESTANDARDSTHE/%#$PROMOTESORTHERULESITDENES

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"EYOND THIS GLOBAL EXPANSION THE/%#$S PURPOSE IN THE STCENTURYSHOULDBE TOCONSTITUTEACLUBOFEXEMPLARYPRACTICES3EVERALTIMESTHROUGHOUTTHECOURSEOFITSHISTORYTHE/%#$HASBEENTHECRUCIBLEOFNEWORGANISATIONSCERTAINOFWHICHTENDEDTOWARDUNIVERSALITY"YANALYSINGTHENEWISSUESFACINGTHEWORLDTHEORGANISATIONESTABLISHED RULES STANDARDSANDBESTPRACTICESTHAT ITSHAREDWITHANINCREASINGLYWIDECOMMUNITYOFNATIONS

Nicolas Sarkozy, President of France

President Nicolas Sarkozy celebrates the OECDs 50th anniversary at the Elyse Palace, 13 December 2010

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;=4HE/%#$HELPEDUSIMPROVEOURECONOMICANDSOCIALSYSTEMANDRETHINKITSFOUNDATIONS

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4ODAYRECOVERYISUNDERWAY"UTHAVEWETRULYCHANGEDTHEWORLD(AVEWEREALLYSETDOWNTHENEWREGULATIONSNEEDEDFORTHESTCENTURY$IDWEHONESTLYTACKLETHESTRUCTURALQUESTIONSTHATHAVEARISENANDTHATCURRENTLYTHREATENGLOBALSTABILITY

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3INCE THE WORLD HAS SEEN NANCIAL CRISES MEANINGTHATTIMESCOUNTRIESHAVEBEENDRAINEDOFCAPITAL)NEMERGING COUNTRIES EXPERIENCED THE MASSIVE WITHDRAWAL OFINTERNATIONALCAPITALBYINVESTORSSEEKINGRISKFREEASSETS&ORTHEPAST YEAR CAPITALMOVEMENTS TOWARDS EMERGING COUNTRIES HAVERESUMEDMASSIVELY DESTABILISING THEIRMONETARY AND EXCHANGERATEPOLICIES!REWETOLETMONETARYSPECULATIONDETERMINEWORLDDEVELOPMENT)AMWHOLLYAGAINSTTHIS

)WANTUS TODEVELOPNANCIAL SAFETYNETS TO REINFORCENANCIALSTABILITY)WANTUSTOTHINKABOUTCAPITALMOVEMENTS)BELIEVETHATWEWERELIVINGUNDERTHEILLUSIONTHATTHEDEREGULATIONOFCAPITALMOVEMENTS WOULD BY DENITION BENET DEVELOPMENT ,IKE ALLTHEORIESTHISONESHOULDBEPROVEN)THASNOTBEEN%XPERIENCEHASSHOWNTHATUNCHECKEDLIBERALISATIONCANEXPOSEOURCOUNTRIESTO EXTREMELY SYSTEMIC NANCIAL CRISES )N THIS REALM WE NEEDINTERNATIONALRULESANDINSTITUTIONSTOENFORCETHESERULES&RANCEWILL SUBMIT PROPOSALS IN THIS AREA ) HOPE THAT THE /%#$WILL

PROVIDEITSINPUTANDEXPERIENCE

!T THE SAME TIME WE MUST REECT ON THE MODEL BASED ONSTOCKPILINGDOLLARRESERVES;=,ETMEBECLEAR)DONOTWISHINANYWAYTODISCREDITTHEROLEOFTHEDOLLARWHICHINANYEVENTWILLBEPROMINENT"UTPROMINENTDOESNOTMEANEXCLUSIVEANDLIKETHE53GOVERNMENTWEHOPETHEDOLLARWILLREMAINSTRONG)AMSIMPLYSAYINGTHATOURMONETARYARRANGEMENTSCANNOTCONTINUETOREECTYESTERDAYSWORLDINWHICHNEITHER)NDIANOR#HINANOR"RAZILWERETHEECONOMICPOWERSTHEYHAVEBECOMETODAY;=

/URSECONDPRIORITYWILLBEPRICESTABILITYFORRAWMATERIALSANDAGRICULTURALPRODUCTS!LL COUNTRIES ALLBUSINESSESAREAWAREOFTHECOSTSGENERATEDBYEXCESSIVEVOLATILITYINRAWMATERIALPRICES;=!SFORTHENANCIALSECTORWEMUSTREGULATEPRODUCTSDERIVEDFROMRAWMATERIALS;=4HE/%#$HASALREADYCONTRIBUTEDMUCHTOTHISREVIEW)AMCOUNTINGONYOUTOCONTINUETHESEEFFORTS

2AISINGTHEMORALSTANDARDSOFCAPITALISMISAMAJOREXPECTATIONOFGLOBALPUBLICOPINION7ECANNOLONGERACCEPTTHEEXCESSIVEBEHAVIOURTHATLEDTOTHEECONOMICCRISIS&RANCEWILLBEMAKINGPROPOSALSBUT)WOULDLIKETOTHANKMYFRIEND!NGEL'URRqAFORHISGHTAGAINSTNONCOOPERATIVEJURISDICTIONSSINCETHE,ONDON3UMMIT;OFTHE'IN=)NTHISREGARDTHE'LOBAL&ORUMON4AXATIONHASBEENASUCCESSINFORMATIONEXCHANGEAGREEMENTSHAVEBEENSIGNEDSINCETHE,ONDON3UMMIT)NTHE&ORUMWILLPUBLISHTHERSTASSESSMENTSCONCERNINGTHEIMPLEMENTATIONOF/%#$RULESONTRANSPARENCYANDEXCHANGEOFINFORMATIONFORTAXPURPOSES4HESEINITIALEVALUATIONSWILLCONSTITUTEANIMPORTANTSTEPINTHEMONITORINGOF'COMMITMENTS/URCREDIBILITYISATSTAKE)FCOUNTRIESHAVECHEATEDTHEYMUSTBEDENOUNCED7HENACOUNTRYISREMOVEDFROMABLACKLISTITCANRETURNTOTHATLIST;=

)NTERMSOFTHEGHTAGAINSTCORRUPTION;=WHYNOTCONSIDERTHECREATIONOFAGLOBALFORUMFORTHEBUSINESSENVIRONMENTLIKETHE'LOBAL&ORUMON4AXATION;=

&RANCE IS HOME TO THE /%#$ HEADQUARTERS AND HAS A SPECIALRESPONSIBILITYTOWARDSTHISORGANISATION;=7EWILLSTRIVETOENSURETHATTHEVARIOUSEVENTSSCHEDULEDTHROUGHOUTASPARTOFITSTHANNIVERSARYCOMMEMORATIONSWILLPROVIDEOPPORTUNITIESTOOFFERITTHEHIGHESTPOSSIBLEVISIBILITYANDTOREINFORCEITSCURRENTPOSITIONWITHREGARDTOGLOBALECONOMICGOVERNANCE7ITHOUTASHADOWOFADOUBTISGOINGTOBEAVERYBIGYEARFORTHE/%#$

Extracted from an address by the president of France, to mark the 50th anniversary of the OECD, delivered at the lyse Palace, Monday 13 December 2010. The full 2 000 word version can be viewed at www.oecdobserver.org/leaders and a webcast

can be viewed at www.oecd.org/france

&ORMOREONTHE&RENCHPRESIDENCYVISITWWWELYSEEFR3EEALSOWWWGORG

12

LEADERS FORUM

Anniversary tribute

/NBEHALFOFTHEPEOPLEOF*APAN)WOULDLIKETOEXTENDHEARTFELTCONGRATULATIONS ON THE TH ANNIVERSARY OF THE /%#$ )N THISLANDMARKYEAR)WOULDLIKETOPONDERTHE/%#$SACHIEVEMENTSANDEXPRESSMYEXPECTATIONSFORITSFUTUREROLE

)N THE FOOTPATH OF DEVELOPMENT THAT *APAN FOLLOWED AFTER THE3ECOND7ORLD7AR THE/%#$ HAS PLAYED A CRITICAL ROLE 3INCE*APANJOINEDTHE/%#$ASTHERSTNONTRANSATLANTICCOUNTRYIN ONLY THREE YEARS AFTER THE ORGANISATIONS ESTABLISHMENT*APANHAS ACTIVELY PARTICIPATED IN THE DISCUSSIONS AND ACTIVITIESOF THEORGANISATION AND ITHASMADE THEBESTUSEOF THEPOLICYANALYSES AND ADVICE IN THE PLANNING OF ITS NATIONAL ECONOMIC

POLICIES4HE/%#$ISSOMETIMESCALLEDTHEGLOBALTHINKTANKWITH ITS CORPSOF SPECIALISTSNOTONLYONECONOMICSBUT ALSOONDEVELOPMENTSOCIALAFFAIRSEDUCATIONANDTHEENVIRONMENTANDITHASMADE SOLID CONTRIBUTIONS TO THE INTERNATIONAL AGENDASOFTHEDAY)WOULDLIKETOREITERATETHESIGNICANTROLETHE/%#$HASPLAYEDINTHESTABLEDEVELOPMENTOFTHEWORLDECONOMY

(ALF A CENTURY HAS PASSED HOWEVER AND WE ARE IN THE MIDSTOF THE STRUCTURAL CHANGES CHARACTERISED BY THE EMERGENCE OFNEWECONOMIES7EAREALSOFACEDWITHGLOBALCHALLENGESSUCHAS CLIMATE CHANGE AS WELL AS SOCIAL AGENDAS SUCH AS AGEINGSOCIETIES&URTHERMOREAFTERTHERECENTUNPRECEDENTEDNANCIAL

Naoto Kan, Prime Minister of Japan

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ANDECONOMICCRISISINTERNATIONALCOORDINATIONISREQUIREDNOWMORETHANEVERSOASTOENSURESUSTAINABLEECONOMICPATHS

(OWCANTHE/%#$CONTRIBUTETOTHESEPOLITICALAGENDASWHILEMAINTAININGANDSTRENGTHENINGITSRELEVANCEINTHEGLOBALECONOMY) BELIEVE THAT IT IS CRUCIAL FOR THE /%#$ TO CONTINUE TO PROVEITS ATTRACTIVENESS IN THE EXPANDED GLOBAL CONTEXT AS WELL AS INITS RELATIONS WITH NONMEMBERS WHILE KEEPING ITS VALUABLETRADITIONS4HESETRADITIONSINCLUDETHEPEERLEARNINGPROCESSINWHICHMEMBERSJOINTLYLEARNFROMTHEEXPERIENCEANDKNOWLEDGEOFOTHERS4HECULTUREOFCARRYINGOUT FRANKEXCHANGESOFVIEWSANDFRUITFULDISCUSSIONISINVALUABLEANDITWASFROMTHISCULTURETHATANUMBEROFRULESANDEXTENSIVEPOLICYUSEFUL TOMEMBERSHAVEBEENDEVELOPED

4OOURGREATSATISFACTIONTHEAPPEALOFTHE/%#$SEEMSTOHAVERECENTLY BECOME RECOGNISED BY NONMEMBERS INCLUDING THEEMERGINGECONOMIES)UNDERSTANDTHATVARIOUSPOLICYFORARELATEDTOTHE/%#$ARENOWTAKINGPLACEINVARIOUSCORNERSOFTHEWORLDAS OUTREACH ACTIVITIES-ANY POLICYMAKERS AND SPECIALISTS FROM

THE EMERGING ANDDEVELOPING COUNTRIES ARE ACTIVELY TAKINGPARTINTHESEMEETINGS%SPECIALLYINTHESOUTHEAST!SIAREGIONWHICHHASBEENDESIGNATED AS A STRATEGIC REGION FOR THE/%#$MANYCOUNTRIESARELEARNINGFROMSPECIALISEDPOLICYADVICEOFTHE/%#$DESIGNEDTOPUTINTOPLACETHERIGHTENVIRONMENTFORINTERNATIONALINVESTMENT *APANWILL CONTINUE TO ASSIST THE/%#$WITH SUCHOUTREACHINITIATIVES

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)BELIEVETHATTHESOLUTIONSFORTHESOCIALANDECONOMICCHALLENGESWEFACECANALSOBETHECATALYSTFORTHECREATIONOFNEWDEMANDANDEMPLOYMENT)TISIMPORTANTTHATWEHARNESSTHESEFORNEWGROWTH4HE/%#$IS INSTRUMENTALASTHESOURCEOFSPECIALISEDKNOWLEDGEANDWISDOMFORTHISPURPOSE)BELIEVETHEREISAMPLESCOPE FORMEMBERS AS WELL AS EMERGING ECONOMIES TO FURTHERMAKEUSEOFTHE/%#$

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!S)LOOKBACKUPONTHEPASTYEARSANDTHINKOFTHE/%#$SEXPECTED ROLE IN THE FUTURE ) AMCONDENT THAT THE/%#$WILLCONTINUE TO MAKE VALUABLE CONTRIBUTIONS TO THE INTERNATIONALCOMMUNITYASANINTERNATIONALORGANISATIONOFHIGHADDEDVALUE,ETMEASSUREYOUTHAT*APANWILLNOTSPAREANYEFFORTS FOR THISPURPOSE

0RIMEMINISTERSWEBSITEWWWKANTEIGOJPFOREIGNINDEXEHTML6ISITWWWOECDORGJAPAN

It is crucial for the OECD to continue to prove its attractiveness in the expanded global context

I highly value the contributions that the OECD is making to the G8, G20 and APEC

14

LEADERS FORUM

A 21st century revolution

#HILEAND,ATIN!MERICAAREATAHISTORICCROSSROADS7EARRIVEDLATETOTHEINDUSTRIALREVOLUTIONOFTHETHCENTURYANDTHUSWEWERE LEFTBEHINDINTHEDEVELOPMENTBANDWAGON7ECANNOTBELEFTBEHINDINTHISNEWREVOLUTIONTHESTCENTURYSREVOLUTIONTHE REVOLUTION OF THE SOCIETY OF KNOWLEDGE TECHNOLOGY ANDINFORMATION

4HISREVOLUTIONISKNOCKINGATOURDOORSANDWILLBEVERYGENEROUSTO THOSE COUNTRIES WISHING TO EMBRACE IT BUT INDIFFERENT EVENCRUELTOTHOSEWHOIGNOREITANDLETITPASSBY

(OWWILLWEDOIT&IRSTBYSTRENGTHENINGTHETHREEMAINPILLARS

THATAREKEYFORDEVELOPMENTTOGERMINATEANDFOROPPORTUNITIESTO OURISH A STABLE VITAL AND PARTICIPATIVE DEMOCRACY A SOCIALMARKETECONOMYCHARACTERISEDBYFREECOMPETITIONANDOPENNESSTOTHEWORLDANDASTRONGEFFECTIVESTATETHATGHTSPOVERTYANDPROMOTESGREATEREQUALITYOFOPPORTUNITIES

(OWEVERTOBUILDONSOLIDFOUNDATIONSANDNOTONSHAKYGROUNDNOTEVENTHEABOVETHREEPILLARSWILLSUFCE)NTHESTCENTURYWEMUSTALSOINVESTINTHEPILLARSOFMODERNSOCIETY)AMREFERRINGTOTHEDEVELOPMENTOFOURHUMANCAPITALWHICHISOURGREATESTTREASURE THE PROMOTION OF INNOVATION AND ENTREPRENEURSHIPWHICH ARE OUR ONLY TRULY INEXHAUSTIBLE RESOURCES INVESTMENT

Sebastin Piera, President of the Republic of Chile

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IN SCIENCE AND TECHNOLOGY WHICH WILL OPEN UP UNSUSPECTEDOPPORTUNITIESINTHEFUTUREANDTHEPROMOTIONOFMOREDYNAMICEXIBLE MARKETS AND SOCIETIES THAT WILL ALLOW US TO BE AT THEFOREFRONTOFUPCOMINGCHANGESANDLEADTHEMRATHERTHANBELEFTBEHINDTRYINGTOUNDERSTANDTHEM

/N THE OTHER HAND WE LIVE IN THE DIGITAL ERA WHERE PHYSICALFRONTIERS AND GEOGRAPHIC DISTANCES HAVE VIRTUALLY DISAPPEARED!S SUCH WEMUST DEEPEN OUR INTEGRATION WITH THE WORLD ANDBETTERGOVERNGLOBALISATIONSOASTOPREVENTITFROMGOVERNINGUS&INANCIAL CRISESARENO LONGER LIMITEDWITHINDOMESTICBORDERS

BUT RATHER HAVE REGIONAL EVEN GLOBAL IMPLICATIONS 4HE ILLS OFMODERNSOCIETYSUCHASTERRORISMDRUGTRAFCKINGANDORGANISEDCRIME KNOW OF NO BOUNDARIES TERRITORIES OR JURISDICTIONS!NYATTEMPT TO EFFECTIVELY FACE GLOBAL WARMING NATURAL DISASTERSHEALTHEMERGENCIESSTARVATIONANDEXTREMEPOVERTYSHALLREQUIREMUCH MORE ATTENTIVE CONCERTED AND EFCIENT ACTIONS BY THEINTERNATIONALCOMMUNITY

.OTONLYMUSTNATIONSPROMPTLYRESPONDTOTHECHALLENGESPOSEDBY THE MODERN SOCIETY INTERNATIONAL INSTITUTIONS INCLUDINGTHE 5NITED .ATIONS AND THOSE BORN FROM THE "RETTON 7OODSAGREEMENT SUCH AS THE 7ORLD "ANK AND THE )NTERNATIONAL-ONETARY&UNDMUSTALSOADAPT TO THENEWREALITY IF THEYWISHTOPLAYALEADINGROLEANDNOTSITALONGASMEREWITNESSESTOTHEDEVELOPMENTSANDCHANGESBROUGHTBYTHESTCENTURY

)N #HILE COMMEMORATED YEARS OF INDEPENDENT LIFE/NLYOFALLEXISTINGNATIONSCANSAYTHESAME)T ISTIMETO ASSESS PROGRESS BUTMOST IMPORTANT IT IS TIME TOWALK THATEXTRAMILE AND ATTAIN THE GOALS ANDDREAMSOUR ANCESTORSHAVEALWAYSCHERISHEDBUTNEVERREACHEDTOMAKEOF#HILEADEVELOPEDCOUNTRYWITHOUTPOVERTYANDWITHREALOPPORTUNITIESFORMATERIALANDSPIRITUALDEVELOPMENTFORALLITSCHILDREN

4O THISENDOURGOVERNMENT IS IMPLEMENTINGAPROGRAMMEOFBOLDREFORMSWITHAMBITIOUSGOALSANDCONCRETEDEADLINES

&IRST TO MAKE OUR ECONOMY GROW ONCE AGAIN AT ANNUALLYFORMANYYEARS4HISGROWTHWILLALLOWUS TOATTAINBY THEYEARA'$0PERCAPITAEQUIVALENTTOTHATOFSOUTHERNANDEASTERN%UROPEANCOUNTRIES

3ECONDTOCREATEONEMILLIONJOBSBETWEEN4HISGOALWILLREQUIREUSTOALMOSTDOUBLETHEJOBCREATINGPACEOFTHEPASTYEARSANDTOFULLYINCORPORATEWOMENINTOTHELABOURMARKET

4HIRDWEARECOMMITTEDTOBOOSTTHEQUALITYOFOUREDUCATIONAT

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&OURTHWEAREADVANCINGTOWARDSASYSTEMTHATACTUALLYGUARANTEESALL#HILEANSADECENTTIMELYANDEFCIENTHEALTHCAREBOTHINTHEPUBLICANDPRIVATESECTORS

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3IXTHWEWANT TODEEPENOURDEMOCRACYMAKING ITMORE VITALTRANSPARENTANDPARTICIPATIVE&ORTHATPURPOSEWEAIMTOINCREASESUFFRAGETOMORETHANTHREEMILLIONYOUNGSTERSWHOCURRENTLYDONOTTAKEPARTINELECTIONSANDTOEXTENDVOTINGRIGHTSTO#HILEANSLIVINGABROAD

&INALLYWEARECOMMITTEDTOELIMINATINGPOVERTYBEFORETHEENDOFTHISDECADEANDTOERADICATINGEXTREMEPOVERTYDURINGTHEPRESENTGOVERNMENTALPERIOD4OACHIEVETHISGOALWEAREINTRODUCINGAFAMILYBASED ETHICAL INCOME THROUGH GOVERNMENT TRANSFERSWHICHWILL SUPPLEMENT THE EARNINGS OF THEMOST IMPOVERISHEDHOUSEHOLDSTHUSPERMITTINGTHEMTOOVERCOMEPOVERTY

"ROADLYSPEAKINGTHESEARETHESEVENPILLARSOFOURADMINISTRATION(IGH NOBLE AND AMBITIOUS GOALS BUT FULLY REACHABLE FOR OURGENERATIONTHEGENERATIONOFOURBICENTENNIAL&OR YEARS THE/%#$HAS BEEN A PROLIC AND INDISPENSABLESOURCEOFADVICEONGOODPRACTICESANDONTHEPUBLICPOLICIESTHATHELPMEMBERSANDNONMEMBERSTOREACHGOALSSUCHASTHOSEOFOURGOVERNMENT4HISSOLIDKNOWLEDGEWILLBEANESSENTIALSUPPORTFOR#HILEINORDERTOSETTHEFOUNDATIONSFORBECOMINGADEVELOPEDCOUNTRY IN THIS NEWWORLDWHERE THE KEYS TO DEVELOPMENT AREKNOWLEDGEINFORMATIONTECHNOLOGYANDINNOVATION

6ISITWWWGOBIERNODECHILECLANDWWWOECDORGCHILE

Human capital is our greatest treasure, innovation and entrepreneurship our only truly inexhaustible resources

16

LEADERS FORUM

Mission possible

Hungary aims to create one million new jobs in ten years

4HE ECONOMIC CRISIS OF RECENT YEARS HAS HAD SERIOUS NEGATIVECONSEQUENCESFORTHEMAJORITYOF/%#$MEMBERCOUNTRIESBUTITHASALSOTAUGHTUSSOMEIMPORTANTLESSONS4HEWORLDSMOSTDEVELOPEDECONOMIESHAVECOMETOREALISEHOWVULNERABLE THEYHAVEBECOMETOSYSTEMSOFNANCIALTRANSACTIONSWHICHARENOWGLOBALISED AND IMMENSE IN SCALE 4HEY HAVE COME TO REALISETHATINAGLOBALISEDCOMPETITIVEARENATHEYMUSTFACEUPTONEWCHALLENGERS WHO HAVE PROVED TO BE FAR LESS VULNERABLE TO THEDESTRUCTIVEEFFECTSOFTHECRISIS4HEYHAVENALLYCOMETOREALISEANDTHISISPERHAPSTHEMOSTIMPORTANTLESSONTHATNOTHINGCANTAKETHEPLACEOFANECONOMYBUILTONWORKANDTHECREATIONOFGENUINE VALUE AND THAT IN LINEWITH THIS THEONLY ASSURANCEOF

SUSTAINABLESTABLEECONOMICSUCCESSLIESINJOBSANDTHECREATIONANDMAINTENANCEOFASMANYJOBSASPOSSIBLE

)N THIS NEW POSTCRISIS ECONOMIC ENVIRONMENT THE THANNIVERSARYOFTHE/%#$OFFERSANEXCELLENTOPPORTUNITYTODENESTRATEGICDIRECTIONSFORTHECOMINGDECADES)TWASALREADYCLEARLYAPPARENTYEARSAGOWHEN(UNGARYJOINEDTHATTHEORGANISATIONWASCAPABLEOFRENEWALANDOPENNESS.OWINATIMEOFCRISISORRATHERWEHOPEAFTERACRISISITSCAPACITYFORRENEWALISINFOCUSONCEMORE4OGETHEROURMEMBERSMUSTOPENUPTOMAJORNEWPLAYERS IN THE WORLD ECONOMY IN SUCH A WAY THAT AT THE SAMETIMEENABLESUSTOPRESERVEOURBASICCOMMONPRINCIPLESONES

Viktor Orbn, Prime Minister of Hungary

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WHICHWEREDEVELOPEDYEARSAGOBUTWHICHARESTILLVALIDTOTHISDAY4HE TRADITIONALECONOMICCENTREOFPOWEREMBODIED IN THE/%#$CANONLYCONFRONTNEWCHALLENGESIFITSMEMBERCOUNTRIESCANSTRIKEACOURSEFORSUSTAINABLEANDSTABLEGROWTHWITHINTHEFRAMEWORKOFREGENERATIVECOOPERATION

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Throughout the entire world economyalso within Europe and Hungaryit is increasingly recognised that in the nancial sector and in nancial services, with regard to the responsibility of private companies towards the public good, states have a major responsibility in the development of regulation which better represents the public interest.

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Restoring public nances

(OWCANGOVERNMENTSRESTOREPUBLICNANCESANDPROMOTESOUND ECONOMIC GROWTH AT THE SAME TIME 7ITH BUDGETDECITSSTRETCHEDANDPUBLICDEBTATHISTORICALHIGHSITWILLNOTBEEASY"UTTHE/%#$BELIEVESTHATWITHTHERIGHTMIXOFPOLICIESMUCHPROGRESSCANBEMADE

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!S IN THIS TRUTH WAS AGAIN EVIDENT IN WHENRUMBLINGSAMONGINVESTORSABOUTTHESIZEOFTHE'REEKBUDGET

DECIT CAUSED UNEASINESS IN ALREADYFRAGILE NANCIALMARKETS"YTHEENDOFALLTHREEMAJORRATINGAGENCIESHADISSUEDDOWNGRADESON'REEKSOVEREIGNDEBT

)N THE MONTHS THAT FOLLOWED THESE RUMBLINGS TURNED INTO AFULLEDGED CRISIS THAT EVENTUALLY SPREAD TO OTHER %UROPEANCOUNTRIES )N SPIRAL EFFECT INVESTORSNERVOUS ABOUT THE ABILITYOF SOME COUNTRIES TO REPAY THEIR PUBLIC DEBTS CHARGED HIGHPREMIUMS TO HOLD GOVERNMENT BONDS 4HIS IN TURN PROVOKEDDOWNGRADESONSOVEREIGNDEBTRATINGSWHICHMADEDEBTEVENMOREEXPENSIVE/THER%UROPEANCOUNTRIES INCLUDING)RELAND0ORTUGAL AND 3PAIN REPEATEDLY FOUND THEMSELVES HAVING TOREASSURETHEMARKETSTHATTHEIRINVESTMENTSWERESAFE

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Is it possible to restore public nances and promote sound economic growth at the same time?

20

.OR ARE EURO AREA COUNTRIES THE ONLY ONES WITH BURGEONINGDECITS3OMEOF THEWORLDS LARGESTECONOMIES INCLUDING THE5NITED3TATESTHE5NITED+INGDOMAND*APANWHOSEDEBTLEVELHASLONGBEENHIGHANDISPROJECTEDTOTOPANASTONISHINGOF'$0INHAVEALSOSEENTHEIRPUBLICSPENDINGSKYROCKETIN RECENT YEARS )N FACT ALL /%#$ COUNTRIES SAW THEIR SCALPOSITIONS DETERIORATE IN 4HE 53 BUDGET DECIT WHICHSTOODATOF'$0INHASFOCUSEDONSTIMULUSWHILEALSODEALINGWITHTHEFALLOUTOFTHECRISISINCLUDINGARISEINLONGTERMUNEMPLOYMENT

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DECITSFROMOTHERWISETHEDECITSANDDEBTWILLBECOMECOUNTERPRODUCTIVE 4HIS LEAVES GOVERNMENTS WITH DIFCULTDECISIONS(OW CAN THEY RESTORE PUBLIC NANCES ANDPROMOTESOUNDECONOMICGROWTHATTHESAMETIME7HERESHOULDTHEYCUTSPENDING)S ITPOSSIBLE TOPRESERVETHEQUALITYOFVITALBUTEXPENSIVE PUBLIC SERVICES SUCH AS HEALTHCARE AND EDUCATIONWHILERESTRAININGEXPENDITURE

4HE /%#$ VIEW IS CLEAR 7HAT THE RECOVERY NEEDS IS FORGOVERNMENTSTORESTOREORDERTOPUBLICNANCESWHILEENACTINGREFORMSINTHESTRUCTUREOFTHEIRECONOMIESTOENABLEGROWTHTOTAKEHOLD4HESEINCLUDECHANGESTOSTREAMLINEADMINISTRATIONACTIVATE LABOUR MARKETS IMPROVE COMPETITION AND BOLSTERSPENDING ON SOCIAL SECURITY )T MEANS TARGETING TAXES THATFAVOUR GREENER GROWTH AND FOCUSING SPENDING ON EDUCATIONINNOVATIONHEALTHCAREANDINFRASTRUCTURE!NDITMEANSDOINGALL OF THIS WHILE CONTINUING TO SUPPORT DEVELOPMENT AID ANDINVESTMENTINPOORCOUNTRIES

3TRIKINGTHERIGHTBALANCEWILLNOTBEEASYANDTHESCALCHALLENGEISSURETODOMINATETHEGLOBALPUBLICPOLICYAGENDASIN

Recommended links and referencesFor OECD work on money and nancial issues, see: www.oecd.org/eco/money

Higher levels of unemployment translate into increased payments for unemployment and welfare bene ts coupled with lower tax receipts, further feeding de cits

Defying scal de cits4HECRISISHASPUSHEDPUBLICDECITSTOUNSUSTAINABLELEVELSINMANYCOUNTRIESASWEAKECONOMICACTIVITYCAUSESTAXREVENUESTOFALLFORCINGCRISISEMBATTLEDGOVERNMENTSTOBORROWINACAUTIOUSMARKETTOPAYFORSERVICESANDWELFAREANDINSOMECASESLIMPINGBANKINGSECTORS

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Change in general government balance% of GDP, 2006-2009

Source: OECD Economic Survey: United States 2010

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OECD Economic Surveys: United States 2010

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RESTORING PUBLIC FINANCES


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GermanyHitting the debt brake

Wolfgang SchubleFederal Minister of Finance

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FranceOn the move

Christine LagardeMinister for Economics, Finance and Industry

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The budget de cit for the OECD area as a whole probably peaked at around 7.5% of GDP in 2010. Thats the equivalent of some US$3.3 trillion. A decrease to around 6.1% of GDP is expected in 2011, which will still be high by historical standards. But while the need to restore public nances is a global challenge, the state of government balance sheets varies widely. Economic starting points, causes of de cits and budgetary strategies also vary. Some countries have started down the road of austerity, others are maintaining stimulus and plan to rein in their de cits from 2011.

,Q'HFHPEHUZe asked nance ministers from a broad selection of countries facing di erent scal challengesFrance, Germany, Indonesia, Ireland, Korea, Mexico, New Zealand and South Africato answer this question:

What actions is your government taking to bolster public nances, while upholding growth and services?

Roundtable

22


IrelandAddressing market turbulences

Brian Lenihan Minister of Finance

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2ECIPIENTSOFCORPORATEWELFAREASWELLASCIVILSERVANTSMUSTSHARETHESACRICE'ERMANCORPORATIONSWILLHAVETOCONTRIBUTETOSCALCONSOLIDATIONTHROUGHREDUCTIONSOFSUBSIDIESANDADDITIONALTAXESONMAJORENERGYCOMPANIESAIRLINESANDNANCIALINSTITUTIONS3IMILARLYCIVILSERVANTSMUSTFOREGOPROMISEDPAYINCREASESANDTHEGOVERNMENTISLOOKINGFORANNUALSAVINGSINTHEFEDERALARMEDFORCESOFUPTO`BILLION

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France -7.4

Germany -4.0

Ireland -32.3

Korea 1.6

Mexico* -2.8

New Zealand -5.3

Indonesia -1.4

South Africa -5.0

Indonesia and South Africa may not be comparable across countries

*central government and public enterprises

General government scal balance% of GDP, 2010

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MexicoStrength through diversity and eciency

Ernesto Cordero Arroyo Secretary of Finance and Public Credit

&ORMORETHANADECADE-EXICOHASFOCUSEDONTHETASKOFSTRENGTHENINGITSPUBLICNANCES0UBLICREVENUESHAVEBEENDIVERSIEDANDTHETAXBASEINCREASEDINORDERTOREDUCEDEPENDENCEONOILREVENUES!DDITIONALLYPUBLICEXPENDITUREHASBEENREFORMEDTOINCORPORATEAPERFORMANCEBASEDPERSPECTIVETOALLOWFORAMOREEFCIENTALLOCATIONOFRESOURCES&URTHERMORE-EXICOHASADVANCEDONITSSTRUCTURALREFORMAGENDARESTRUCTURINGITSPUBLICPENSIONSANDENERGYSECTORSETTINGTHEFOUNDATIONSFORAMOREEFCIENTANDSOLIDECONOMICSYSTEM

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KoreaStriking a balance

Yoon Jeung-Hyun Minister of Strategy and Finance

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IndonesiaTargeting carefully and constructively

Agus Martowardojo Minister of Finance

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New ZealandReasons for optimism

John Whitehead Secretary to the Treasury

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South AfricaMinding future generations

Pravin GordhanMinister of Finance

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104 Australia106 Austria108 Belgium110 Brazil112 Canada114 Chile116 China118 Czech Republic120 Denmark122 Estonia124 Finland126 France128 Germany130 Greece132 Hungary134 Iceland136 India138 Indonesia140 Ireland142 Israel

144 Italy146 Japan148 Korea150 Luxembourg152 Mexico154 Netherlands156 New Zealand158 Norway160 Poland162 Portugal164 Russian Federation166 Slovak Republic168 Slovenia170 South Africa172 Spain174 Sweden176 Switzerland178 Turkey180 United Kingdom182 United States

Country snapshotsOECD and partner countries

104 OECD Yearbook 2011

COUNTRY SNAPSHOTS

Australia

Snapshots GDP in Australia rose by 463% between 1960 and 2009.

General government debt came to 19.2% of GDP, compared with 90.6% for the OECD.

Unemployment stood at 5.6%, below the OECD average of 8.1%; in 1960 it was 1.4%.

Women made up 45.6% of the labour force, up 62% since 1964, and slightly above the OECD average.

Self-employment, at 11.7%, was below the OECD average of 15.8%.

Some 23.3% of inhabitants have broadband access, compared with an OECD average of 24.2%.

Renewable energy accounted for 5.3% of Australias energy supply, compared with 7.1% for the OECD.

Development aid came to 0.3% of GNI.

Other highlightsThe Australian economy, fuelled by the mining boom, should grow robustly in 2011 and 2012 at a rate of between 3.5 and 4%. Strong growth, driven by gains in terms of trade and dynamic investment, will reduce unemployment. But further monetary tightening may be needed for a non-inationary recovery and the scal consolidation plan must be pursued. OECD Economic Outlook 2010

Australia is one of only two OECD countries that levy no social security contributions at all on employees. OECD Taxing Wages 2009

In education, Australia was ranked 6th overall in the PISA 2009 survey, the same as in 2006. OECD PISA 2009 at a Glance

Australia has introduced a new requirement whereby unemployed early school-leavers aged under 21 must undertake education and/or paid employment or voluntary experience to qualify for unemployment benets. OECD Employment Outlook 2010

Australia is one of two OECD countries where the share of private pensions in total expenditures on old-age benets exceeds 50%. The average share of private pensions in the total is a little over 20%.

More than 70% of young adults enter tertiary programmes. OECD Factbook 2010

There has been remarkable progress in reducing tobacco consumption, cutting by half the percentage of adults who smoke daily (from 35.4% in 1983 to 16.6% in 2007), which is one of the lowest in OECD countries, behind only Sweden and the US. OECD Health Data 2010: Australia

Economy 2009* 1960*

GDP (US$ bn) 869.7 122.6 1960-2009: +463%

GDP growth (annual growth in %) 1.2 ..

GDP per capita (US$) 39172 11937 1960-2009: +172%

Population (thousands) 21244 10275 1960-2009: +107%

Budget decit (% of GDP) -4.0 ..

Public debt (% of GDP) 19.2 ..

All-in tax rate

(average worker, % of labour cost) 26.9 30.6 2000-2008: -12%

Society

Employment rate (% of labour force) 72.0 58.0 1966-2009: +24%

Unemployment rate (% of labour force) 5.6 1.4 1960-2009: +294%

Women as % of labour force 45.6 28.1 1964-2009: +62%

Poverty rate (% of population) 12.4 ..

Life expectancy (years) 81.5 70.9 1960-2008: +15%

Health expenditure (total, % of GDP) 8.5 3.8 1963-2007: +124%

Self-employed (% of employment) 11.7 15.1 1990-2008: -22%

Hours worked (annual hours per worker) 1690 1814 1978-2009: -7%

Spending on education (total, % of GDP) 5.2 5.2 1995-2007: 0%

New sources of growth

R&D expenditure (% of GDP) 2.0 1.0 1984-2006: +96%

Broadband access

(subscriptions / 100 inhabitants) 23.3 ..

Renewable energy (% of energy supply) 5.3 8.8 1971-2008: -40%

CO2 emissions (tonnes per capita) 18.5 10.9 1971-2008: +69%

Globalisation

Trade (goods and services % of GDP) 24.5 14.0 1960-2008: +76%

Development aid (% of GNI) 0.3 0.3 1995-2009: -15%

Foreign-born population (% of population) 25.0 23.0 1995-2007: +8%

FDI stock (outward, US$ bn) 290 30 1990-2007: +850%

* or nearest available year

Country information

Joined the OECD: 1971

Head of Government: Prime Minister Julia Gillard

Ambassador to the OECD: Christopher Langman

Delegation website: www.dfat.gov.au/missions/countries/froe.html

Government: Australian Labor Party

Next major election: By 30 November 2013

Parliament website: www.aph.gov.au

Main employer group: Australian Chamber of Commerce and Industry (ACCI)

Main trade union: Australian Council of Trade Unions (ACTU)

Capital city: Canberra

National holiday: 26 January

In 2006, net Of cial Development Assistance to Oceania reached US$1.1 billion of which US$279 million was for Papua New Guinea and US$205 million for the Solomon Islands. Australia was the biggest net ODA donor (43%) to Oceania. OECD Development Aid at a Glance 2008

In June 2010 legislation was passed to extend and amend the countrys mandatory renewable energy target for electricity, with the objective of achieving 20% of electricity from renewables by 2020. IEA World Energy Outlook 2010

See www.oecd.org/australia

ReferencesOECD (2010), Economic Surveys: Australia, Paris

OECD (2010), Market Openness in Australia, Paris

OECD (2010), Reviews of Regulatory Reform: Australia 2010, Paris

OECD (2009), Jobs for Youth: Australia 2009, Paris

OECD (2008), Eco-Innovation Policies in Australia, Paris

OECD Reviews of Regulatory Reform: Australia 2010: Towards a Seamless National EconomyThe resilience of the Australian economy, in the face of the deepest and most widespread recession in over fty years in OECD countries, can in part be attributed to Australias current and past regulatory reforms. This book shows that Australia has built strong governance foundations for the development of good regulatory management and competition policies, which are likely to be conducive to economic growth. It aims to reinvigorate a wide agenda of national reforms and to embed past reform achievements in new working arrangements between the Commonwealth and the states. This reform agenda is likely to yield substantial economic bene ts for years to come, but demands joint participation and commitment from both the Commonwealth and all states. Maintaining the momentum for reform is a critical challenge, which requires a strategic vision as well as strenuous efforts to promote change and to establish a culture of continuous regulatory improvement.

BETTER POLICIES FOR BETTER LIVES IN AUSTRALIA

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Austria

Snapshots GDP in Austria rose by 313% between 1960 and 2009.






Renewable energy accounted for 25.8% of Austrias energy supply, compared with 7.1% for the OECD.

Development aid came to 0.3% of GNI.

Other highlightsThe recovery gained momentum in the second quarter of 2010, driven by the increase in world trade and strong economic growth in Germany, Austrias largest trading partner. Capacity utilisation rose towards its long-term average level and investment picked up. Employment growth spread to the manufacturing sector, but most newly created jobs are still in lower-productivity services. OECD Economic Outlook 2010

After several years of declining numbers, asylum seeking increased in 2008, and this trend accelerated in 2009. OECD International Migration Outlook 2010

Austria is one of the member countries where students academic achievements are most affected by their familiessocio-economic background. OECD Economic Surveys: Austria 2009

Science and engineering degrees represent 31% of all new degrees, well above the OECD average. OECD Science, Technology and Industry Outlook 2010

Graduation rates from medical education programmes have consistently been above the OECD average , resulting in high and rising numbers of doctors. OECD Health at a Glance 2009

In education, Austria was ranked 25th overall in the PISA 2009 survey, down eleven places from 2006. OECD PISA 2009 at a Glance

At 10.5%, Austria is among countries with the highest rates of total health spending as a share of GDP. OECD Health Data 2010: Austria

In 2008, Austria had 4.6 practising physicians per 1,000 population, compared with an average of 3.2 in OECD countries. But it had 7.5 nurses per 1,000 population, compared with an OECD average of 9.0. OECD Science, Technology and Industry Outlook 2010

Economy 2009* 1960*

GDP (US$ bn) 320.9 63.7 1960-2009: +313%

GDP growth (annual growth in %) -3.9 ..

GDP per capita (US$) 38368 9036 1960-2009: +248%

Population (thousands) 8366 7048 1960-2009: +19%

Budget decit (% of GDP) -4.3 ..

Public debt (% of GDP) 72.7 ..

All-in tax rate (average worker, % of labour cost) 48.8 47.3 2000-2008: +3%

Society

Employment rate (% of labour force) 71.6 68.4 1994-2009: +5%

Unemployment rate (% of labour force) 4.8 2.4 1960-2009: +98%

Women as % of labour force 46.5 38.4 1968-2009: +21%

Poverty rate (% of population) 6.6 ..

Life expectancy (years) 80.5 68.7 1960-2008: +17%

Health expenditure (total, % of GDP) 10.5 4.3 1960-2008: +144%

Tertiary graduation rate (% of population) 22.1 9.7 1995-2007: +127%

Self-employed (% of employment) 13.8 14.2 1990-2008: -3%

Hours worked (annual hours per worker) 1621 1654 1995-2009: -2%

Spending on education (total, % of GDP) 5.4 6.2 1995-2007: -13%

New sources of growth

R&D expenditure (% of GDP) 2.7 1.1 1981-2009: +148%

Broadband access (subscriptions / 100 inhabitants) 22.1 ..

Renewable energy (% of energy supply) 25.8 10.9 1971-2008: +137%

CO2 emissions (tonnes per capita) 8.3 6.5 1971-2008: +28%

Globalisation

Trade (goods and services % of GDP) 56.5 28.3 1970-2008: +100%

Development aid (% of GNI) 0.3 0.3 1995-2009: +12%

Foreign-born population (% of population) 14.2 11.2 1998-2007: +26%

FDI stock (outward, US$ bn) 156 5 1990-2007: +3187%

* or nearest available year

COUNTRY SNAPSHOTS

Country information

Joined the OECD: 1961

Head of Government: Federal Chancellor Werner Faymann

Ambassador to the OECD: Wolfgang Petritsch

Delegation website: www.bundeskanzleramt.at/oecd

Government: Coalition of the Social Democratic Party of Austria and the Austrian

Peoples Party

Next major election: 2013

Parliament website: www.parlament.gv.at

Main employer groups: Federation of Austrian Industry, Austrian Chamber

of Commerce

Main trade unions: Austrian Trade Union Federation, Austrian Federal Chamber

of Labour

Capital city: Vienna

National holiday: 26 October

Renewable energy features prominently in Austrias energy policy. Austrias long-term policy has resulted in a well-balanced mix of energy sources in which renewables account for 21.3% of total primary energy supply (TPES), one of the highest in the OECD area. OECD Energy Policies of IEA Countries: Austria 2009

Austria makes extensive use of solar water heaters, relative to other countries. IEA/OECD World Energy Outlook 2010

See www.oecd.org/austria

ReferencesOECD (2010), Reviews of Migrant Education: Austria 2010, Paris

OECD (2010), Better Regulation in Europe: Austria 2010, Paris

OECD (2009), Economic Surveys: Austria 2009, Paris

Bhattacharya, Rina (2007), Austrias Deepening Economic Integration with Central and Eastern Europe, OECD Economics Department Working Papers, No. 572

Janger, Jrgen et al. (2007), Boosting Austrias Innovation Performance, OECD Economics Department Working Papers, No. 580

Better Regulation in Europe: Austria 2010This report maps and analyses the core issues which together make up effective regulatory management for Austria, laying down a framework of what should be driving regulatory policy and reform in the future. Issues examined include: strategy and policies for improving regulatory management; institutional capacities for effective regulation and the broader policymaking context; transparency and processes for effective public consultation and communication; processes for the development of new regulations, including impact assessment, and for the management of the regulatory stock, including administrative burdens; compliance rates, enforcement policy and appeal processes; and the multilevel dimension: interface between different levels of government and interface between national processes and those of the EU. This book is part of a project examining better regulation, being carried out in partnership with the European Commission.

BETTER POLICIES FOR BETTER LIVES IN AUSTRIA

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Belgium

Snapshots GDP in Belgium rose by 284% between 1960 and 2009.






Renewable energy accounted for 4.4% of Belgiums energy

Documents

OECD Yearbook 2011