July 12, 2019 / 11:50AM / OECD / Header Image Credit: The Globe and Mail
The Organisation for Economic Cooperation and Development (OECD) believes recent uncertainty in the global economy should prompt governments to embark on reforms that promote sustainable growth, raise incomes and increase opportunities for all.
The recommendations for a robust framework for public sector intervention in promoting global growth was part of key issues raised by the organisation in its annual “Going for Growth” report released ahead of the G-7 summit scheduled for July 17-18th, 2019 in Chantilly, France.
Secretary-General, OECD, Mr. Angel Gurria, in his remarks said: “As growth is slowing down, and new technologies are rapidly transforming our economies, it is urgent to pursue reform efforts to boost inclusive and sustainable growth.”
The Going for Growth report presents the top structural reform priorities in 46 OECD and non-OECD economies, alongside an assessment of progress countries have made on key reforms in the past years. It points to a disappointing pace of reforms in 2017-2018, finding little sign of an imminent pick-up from the already modest pace of reform observed in the previous two years.
It also points out that reform priorities to boost inclusive growth differ across countries. A common feature is that many of them can make opportunities for succeeding in life more equal across workers and firms.
OECD also stresses that Education is the most common reform priority across countries, and it is crucial to make sure current and future generations find quality employment and lead more productive careers. Addressing the pertinent issue of labour market segmentation and improving the conditions for labour market inclusion of women, migrants, minorities and older workers are also crucial so everyone can benefit from growth.
Looking at the fiscal side, it notes that shifting taxation from income to property would boost growth, particularly in advanced economies.
It also believes that public sector efficiency, the rule of law and adequate, accessible infrastructure provisions are equally important to save resources, access to markets and create the conditions for businesses to invest in innovation, in particular, but not only in emerging-market economies.
The report also established the fact that reforms to boost competition in markets for goods and services are often difficult.
It asserted that opening up the markets to entry, competition and foreign trade and investment is essential for innovation, the diffusion of digital technologies and ultimately productivity growth and social inclusion.
Such reforms, according to the OECD, remain among the most frequent Going for Growth priorities.
This year’s edition presents the top structural reform priorities in 46 OECD and non-OECD economies, alongside an assessment of progress countries have made on key reforms in the past years. It points to a disappointing pace of reforms in 2017-2018, finding little sign of an imminent pick-up from the already modest pace of reform observed in the previous two years.