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Responding to the crisis: what are OECD countries doing to strengthen their public finances?

OECD countries are intensifying their fiscal consolidation efforts, introducing additional measures and extending the time horizon to implement them. Most have announced fiscal consolidation of more than 3% of GDP over the period 2009-15, according to the OECD’s Restoring Public Finances 2012.




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Human Resources Management: Country Profiles

These country notes profile public sector human resource practices and policies, covering issues including legal frameworks; age and gender composition of workers; public sector restructuring; management practices; industrial relations and reforms.




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Urgent action needed on jobs and governance in the Middle East and North Africa (MENA)

In response to increasing pressure to deliver on growth, jobs and better governance, policy makers from MENA and OECD reiterated their support for measures to strengthen the business climate and governance in the region.




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Focus on Governance

The financial and economic crises have highlighted the need for change in the way our governments and systems operate. But the real question is what changes will deliver inclusive, open and responsible governance that can reduce inequality and promote economic growth.




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What cities for the next 3 billion?: OECD symposium

Three world experts discuss the future of cities in the current context of rapid urbanisation. This meeting was held in Paris on 4 December 2012.




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Brazil: Enhancing audit reporting is key to the integrity of government accounts

Brazil’s supreme audit institution – the Federal Court of Accounts (TCU) – has began a process to reform its audit of the Accounts of the President of the Republic to enhance transparency and accountability of federal budget execution.




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Inspections Reforms: Why, How and With What Results

This report summarises experience of OECD and non-OECD countries with reforming inspections, attempts to present some of the most interesting and successful experiences suggesting that some good practices may be valid beyond the countries where they were initially pioneered.




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Reform of Regulatory Enforcement and Inspections in OECD Countries

This report summarises the results of the survey on regulatory enforcement and inspections conducted among OECD countries in 2012. The report draws some general conclusions from this survey and provides theoretical background on the topic. It also suggests some recommendations for organising and reforming inspections.




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Mexico must improve water governance, financing and regulation, says OECD Secretary General Angel Gurría

Mexico’s river basins are under severe water stress. The quality of rivers, lakes and aquifers is declining and floods, droughts, and hurricanes are more frequent. These are some of the alerts signaled in OECD’s Making Water Reform Happen in Mexico.




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The equity implications of fiscal consolidation

In several OECD countries, ongoing fiscal consolidation might have a negative impact on the static income distribution. However, this conclusion should be treated only as an approximate first step in the analysis.




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Accountability, Transparency, Participation: Key Elements of Good Governance

In collaboration with the Federal Government of Germany, the OECD organised four workshops at the International Regulatory Reform Conference (IRRC) 2013 in Berlin. The workshops focused on the use of cost-benefit analysis in governmental decision making, as well as on the role of key actors of regulatory governance in the regulatory policy cycle: Parliaments, regulatory agencies and audit offices.




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Improving the fiscal framework to enhance growth in an era of fiscal consolidation in Slovakia

The challenge for fiscal policy in Slovakia is to achieve fiscal consolidation in a way which supports the fragile recovery and protects spending on areas which are important for re-embarking on a trajectory of high trend growth and underpinning a catch-up in living standards.




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Launch meeting of the Leading Practitioners on Public Procurement

Launch Meeting of the Leading Practitioners on Public Procurement




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OECD Reviews of Regional Innovation: Wallonia, Belgium 2012

This publication looks at regional innovation in Wallonia, Belgium, by examining the political context, governance issues and the role of innovation in the economy, along with regional innovation strategies to promote growth.




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Measuring Fiscal Decentralisation, Concepts and Policies

This book deals with two issues. The first concerns the various measurement of fiscal decentralization in general and their usefulness for policy analysis. The second and more specific issue concerns the taxonomy of intergovernmental grants and the limits of the current classifications.




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Charting Illicit Trade: Sharing Data and Information

OECD Task Force on Charting Illicit Trade




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The efficiency and equity of the tax and transfer system in France

Taxes and cash transfers reduce income inequality more in France than elsewhere in the OECD, because of the large size of the flows involved. But the system is complex overall. Its effectiveness could be enhanced in many ways, for example so as to achieve the same amount of redistribution at lower cost.




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Trust comes from within

Russians are becoming increasingly active in the country’s social arena. While activists remain a small but growing and visible minority of citizens looking for changes in governance, many more are becoming involved in the day-to-day affairs of their communities. It remains to be seen whether this emerging culture of civic participation will sit comfortably with existing governance structures.




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Ports: How to Get More Value for Money?

Ports are the nervous system of global trade. Over 80% of world cargo (by volume) is transported by sea. Our efforts to raise the efficiency, competitiveness and sustainability of ports can help boost trade, growth and jobs. It can also help us to promote green growth and development in the poorest regions, said OECD Secretary-General.




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Restoring Japan’s fiscal sustainability

With gross government debt surpassing 200% of GDP, Japan’s fiscal situation is in uncharted territory. In addition to robust nominal GDP growth, correcting two decades of budget deficits requires a large and sustained fiscal consolidation based on a detailed and credible multi-year plan that includes measures to control spending and raise revenue.




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Fiscal federalism and its impact on economic activity, public investment and the performance of educational systems

Intergovernmental fiscal frameworks usually reflect fundamental societal choices and history and are not foremost geared towards achieving economic policy objectives. Yet, like most institutional arrangements, fiscal relations affect the behaviour of firms, households and governments and thereby economic activity.




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The 90% public debt threshold: the rise and fall of a stylised fact

This paper puts the original Reinhart-Rogoff dataset, made public by Herndon et al. (2013), to a formal econometric test to pin down debt thresholds endogenously. We show that the nonlinear relation from debt to growth is not very robust.




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Restructuring welfare spending in Slovenia

Restoring fiscal sustainability is a major challenge in Slovenia. Yet, the performance in terms of expenditure control is poor and public expenditure on social spending increased briskly during the crisis, significantly more than on average across the OECD.




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OECD Forum on Transparency and Integrity in Lobbying

The Forum addressed key challenges in designing and implementing a system that ensures compliance in a cost-effective way.




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The post-crisis narrowing of international imbalances - cyclical or durable?

After peaking in the first half of 2008, international imbalances declined sharply during the global crisis of 2008-09, in part reflecting cyclical factors such as large contractions in domestic demand on the back of bursting housing bubbles in a number of deficit countries, as well as large declines in cross-border capital flows, interest rates and commodity prices.




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Italy and the euro area crisis: securing fiscal sustainability and financial stability

Italy’s policy of fiscal consolidation and growth-friendly structural reforms has substantially improved its economic prospects, but the adverse sentiment that the country has faced in the sovereign bond market over the past years has deep roots.




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Choosing fiscal consolidation instruments compatible with growth and equity

This study proposes a structured approach to selecting instruments of fiscal consolidation that are consistent with growth, equity and global-rebalancing objectives, which is then illustrated with a particular application.




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Fiscal consolidation across government levels. Part 1: How much, what policies?

This paper provides an overview of fiscal consolidation efforts at the central and sub-central government level, both during the current and past consolidation episodes.




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Fiscal consolidation across government levels. Part 2: Fiscal rules for sub-central governments, update of the institutional indicator

Fiscal rules that constrain sub-central government (SCG) budgeting are very common across the OECD, but there are substantial cross-country differences in their implementation and impact. This paper presents the 2011 update of the fiscal rules database established in 2005.




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Fiscal consolidation across government levels. Part 3: Intergovernmental grants, pro- or counter-cyclical?

This paper provides empirical analysis that measures the cyclical properties of intergovernmental transfers (or grants). Modelling a fiscal policy reaction function this paper tests whether the transfers systems in OECD countries are pro- or counter-cyclical, i.e. whether they offset cyclical fluctuations of sub-central economies or, on the contrary, exacerbate them.




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A simple fiscal stress testing model - case studies of Austrian, Czech and German economies

This paper develops a simple model-based framework for stress testing fiscal consolidation strategies under different scenarios of future shocks




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OECD Secretary-General to participate in public administration reform seminar in Madrid on Monday 15 July 2013

The Spanish government has launched a series of ambitious public administration reforms as part of wider efforts to promote economic competitiveness and strengthen trust in government and public institutions.




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Improving fiscal federal relations for a stronger Mexico

Mexico has achieved a high degree of decentralisation in public services, but the Mexican fiscal federal system has important shortcomings. States and municipalities have become heavily dependent on federal transfers to finance a growing share of public spending.




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Reflections on 120 years of women's suffrage in New Zealand

On 19 September 1893 New Zealand became the first self-governing country in the world to grant the right to vote to all adult women. New Zealand's Permanent Representative to the OECD Rosemary Banks says the 120th anniversary of this decision is an time to reflect on that achievement.




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Measuring regulatory performance at sub-national level: Benefits and challenges

This workshop served to discuss how benchmarking and measuring regulatory performance can help advance a regulatory policy at the sub-national level.




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Recovering Trust as a Key to Effective Public Policy

Public trust is the cornerstone of effective governance, the main ingredient to promote economic growth and social progress. Like never before, our citizens have doubts about their government’s capacities to make the right decisions. Therefore, we need to take the necessary measures to recover that confidence, said OECD Secretary-General.




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Regulatory improvement in the Municipality of San Luis Potosí, Mexico

The OECD and the Municipality of San Luis Potosí in Mexico launched a programme to improve municipal formalities according to the OECD Guide.




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The Competitiveness of Global Port-Cities: The Case of Danube Axis, Slovak Republic

This working paper offers an evaluation of the performance of the inland ports of the Slovak Republic within the framework of the Danube Axis, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it.




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The Competitiveness of Global Port-Cities: The Case of Angofasta, Chile

This working paper offers an evaluation of the performance of ports of Antofagasta, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it.




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How to achieve growth- and equity-friendly fiscal consolidation?

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial fiscal consolidation needs. The choices made about which spending areas to curtail and which taxes to hike will have implications for near-term activity and long-term growth as well as for equity and the current account.




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Fiscal devaluation – can it help to boost competitiveness?

The recent crisis has revealed large differences in external competitiveness between euro area member countries. Since nominal exchange rate devaluation is not an option for members of a currency area, governments in troubled member countries have been considering so-called fiscal devaluation, i.e. a shift from employers’ social security contribution to value added tax, as an alternative means to restore competitiveness.




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Policies for inclusive urbanisation in China

Urbanisation in China has long been held back by various restrictions on land and internal migration but has taken off since the 1990s, as these impediments started to be gradually relaxed. People have moved in large numbers to richer cities, where productivity is higher and has increased further thanks to agglomeration effects.




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9th OECD Rural Development Policy Conference

The 9th OECD Rural Development Policy Conference in Bologna, on 23-25 October 2013, will launch the publication "Rural-Urban partnerships: an integrated approach to economic development".




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OECD report measures human cost of crisis; underlines need to invest in well-being

The global economic crisis has had a profound impact on people’s well-being, reaching far beyond the loss of jobs and income, and affecting citizens’ satisfaction with their lives and their trust in governments, according to a new OECD report.




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Regulatory Reform in the Middle East and North Africa: Implementing Regulatory Policy Principles to Foster Inclusive Growth

This report assesses progress in the implementation of regulatory policy within the MENA region and highlights good practices from Bahrain, Egypt, Jordan, Lebanon, Mauritania, Morocco, the Palestinian Authority and Tunisia.




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Insights Blog: Why should the Middle East and North Africa care about regulatory reform?

The report "Regulatory Reform in the Middle East and North Africa" assesses progress in the implementation of regulatory policy within the MENA region and highlights good practices from Bahrain, Egypt, Jordan, Lebanon, Mauritania, Morocco, the Palestinian Authority and Tunisia.




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Restoring Trust in Government: Addressing Money and Influence in Public Decision Making

This Forum took stock of the key challenges and trends in regulating money in politics; identify emerging risks and opportunities; shape a common understanding of the policy options ahead and trade-offs in enhancing fairness, integrity and transparency in decision making including in the realm of political finance; and mobilise partners to work together and promote synergies in the future agenda.




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Quality Urban Life: How to make it a reality?

Wikiprogress online discussion on Latin America entitled "Quality Urban Life: How to make it a reality?".




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The role of parliaments in promoting better regulation

The OECD and the Scrutiny Committee on Law Implementation of the French Senate co-organised a conference on 5 December 2013 on “Law evaluation and better regulation: the role for parliaments” at the Luxembourg Palace in Paris.




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Aix-Marseille at the crossroads: Overcoming fragmentation for a stronger metropolitan area

The metropolitan region of Aix-Marseille in the south of France needs to tackle its fragmentated governance if it is to return to more inclusive and sustainable economic growth, according to a new OECD report.