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Mexico telecom reform: into the “last mile”

Since Mexico embarked on reform of its telecommunication and broadcast market in 2013, the results can be roundly summarised in a single phrase: price drop, revenue up. With the exception of the price index for pay TV, which has gone up 5%, the cost of roaming, and domestic and international phone calls has dropped steeply, with Mexicans now enjoying some of the lowest-cost mobile services in the OECD area. 

A best case trade scenario…

Given current trade tensions, this question might seem fanciful, but what would happen if tariffs were reduced, rather than raised? 

…And worst case trade scenario

Following our “fantasy global trade” scenario posted here, let’s look at another trade hypothetical: what would happen if the US, China and Europe all raised trade costs on all goods, but not services, by 10 percentage points for all trading partners?

book cover
Don’t cry for me

Argentina’s economy has survived recurring states of crises, alternating between periods of recession and high economic growth. The economy, and its people, need to be better equipped to be more resilient to shocks. 

Improving life in France’s lower-income neighbourhoods

While overall poverty is relatively low in France, it can be highly concentrated at the neighbourhood level. In some cases, 40% of households in such neighbourhoods are below the relative poverty line. Unemployment is high, children struggle in school, housing and urban infrastructure is run down, and there is a lack of local employers, public and private services, and amenities. The French government deploys special education, employment, business and safety measures in these areas. 

Can women win on the obstacle course of business finance?

About a decade ago, three academics silently sat in on and recorded 36 hours of closed-room discussion among a group of Swedish governmental venture capitalists made up of two women and five men. The venture capitalists (VC) were going over pitches made by 125 people to obtain financing for their businesses of which 99 were men and 26 women.

World Cups and Olympic Games: How to stop three weeks of fete from turning into 30 years of debt

The 2018 football World Cup has kicked off in Russia, and people around the globe are by now glued to their radios, televisions, and laptops, living each save, each goal, every triumph, every loss. Excitement reigns, but at the same time, some are also turning their thoughts to the future, to 2022 and beyond. Organising and hosting an event on the scale of the World Cup is a massive undertaking, as FIFA, the governing body of world soccer, the OECD, and even the voters of the Swiss canton of Valais, know well.

Investment in renewable energy: What policymakers must do to make it happen

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.

Globalisation: Don’t patch it up, shake it up

In Giuseppe Tomasi di Lampedusa’s novel Il Gattopardo (The Leopard)character Tancredi Falconeri famously says: “If we want things to stay as they are, things will have to change.” The Sicilian aristocracy he represents has only one way to preserve its privileges against Garibaldi’s “Risorgimento”: change things on the surface so that in practice nothing changes at all.

gdp,digital,economy,airbnb,blablacar,internet,sharing economy,digitalisation,web,productivity
Measuring the economy in the age of digitalisation

Recent years have seen a rapid rise in digital transactions, notably through web-based “sharing economy” platforms that have bridged, and indeed blurred, the gap between consumers and producers. But this upsurge has also created new challenges for measuring GDP, and, against a backdrop of slowing rates of productivity growth, has led some to question whether the slowdown reflects these new transactions.

Phase them out!

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.

New energy in the electricity sector

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

The rise of the digital economy has led numerous markets to experience radical innovation in business models. This has shaken incumbent firms and benefited consumers. Electricity is no exception, with green and distributed generators located in the workplace and home already posing existential threats to traditional mass supply-based businesses. And now a variety of new business models are emerging to disrupt retail too. With innovation needed to deliver on commitments to combat climate change and address fuel poverty, radical innovation in the electricity sector holds promising potential. 

Employment now better than in 2008 thanks to services

Employment in OECD countries has finally caught up and passed 2008 pre-crisis figures with 67.6% of the working-age population now with jobs, according to the latest OECD employment numbers. 

Canada climate policy: The plans look great, now let’s go!

"The markets have moved on, the world has moved on, coal is not coming back," said Catherine McKenna, Environment and Climate Change Minister of Canada when she launched the Powering Past Coal Alliance with the UK and 23 partner countries, states and regions at the COP23 climate conference in Bonn on 16 November 2017.

Eurasia: Investing for the future

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.

A new network for open economies and inclusive societies

Who would have guessed just a decade ago that trade and investment policies would emerge today as one of the most contested fields in OECD countries? We’ve had protests about globalisation before, but this time it seems different. As Martin Wolf wrote in the Financial Times, “The era of globalisation under a US-led order is drawing to a close… The question is whether protectionism and conflict will define the next phase”.

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Japan should boost inclusive growth to help address demographic and fiscal challenges

The Japanese economy has gained momentum, with “Abenomics” playing a key role in the country’s economic revival. But the latest OECD Economic Survey of Japan warns that more needs to be done to underpin inclusive growth, productivity and well-being amid pressures from high and rising government debt and a shrinking workforce.

Labour productivity in 2015

Employment rates have been rising in several OECD countries, but productivity has not kept up. Indeed, a slowdown of productivity growth in the past years continued to undermine rises in economic output and living standards. Labour productivity among the G7 countries was highest in the US where the level of GDP per hour worked was US$68.3 in 2015, followed by France and Germany, while Canada and Japan had levels below the OECD average of $51.1.

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OECD Observer roundtable on pensions

Healthcare is not the only service feeling the effects of ageing populations. Pension systems are also under financial pressure, with policymakers in many countries struggling to find long-term solutions (see for instance www.oecd.org/pensions). We ask a range of experts: 

oecd,china,economy,urban,rural,growth
China's economy

As it enters the 13th Five-Year Plan period (2016-20), the Chinese economy continues to grow fast by international standards. While growth is slowing gradually, GDP per capita remains on course to almost double between 2010 and 2020. As a result, the Chinese economy will remain the major driver of global growth for the foreseeable future. 

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Healthcare systems: Tackling waste to boost resources

Is there such a thing as a right amount of health spending? In an ideal world, this would likely mean spending that achieves effective healthcare services, with good outcomes for patients, the right number of professionals with the right skills, and delivers good value for tax payers with little, if any, wastage. Finding that balance is a difficult challenge. 

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Why a push for gender equality makes sound economic sense

This year’s OECD Forum coincides with the celebration of the 20th anniversary of the Beijing Declaration, which was an important milestone to promote gender equality worldwide. Much has been achieved since 1995, but unfortunately, a lot remains to be done to close the gender gap and increase women’s participation in our economies and societies.

Closing the gender gap can boost the economy

Reconciling work and family commitments is a challenge in every country, but particularly for Japanese men and women. Much more so than in most other OECD countries, men and women have to choose between babies and bosses: men choose bosses, women less so, but on the whole there are very few babies and there is too little female employment. These shortcomings are increasingly coming to the fore and will have to be addressed.

Forging a gender-balanced economy

“I am only a woman!” declares Sybylla Melvyn with deliberate irony, in the Australian classic novel, My Brilliant Career. When Miles Franklin wrote the novel in 1901, aged just 19, she was embarking on her own career path, and though successful, like Sybylla, she encountered many social, economic and cultural hurdles along the way.

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Going for inclusiveness and productivity

Inclusiveness should be a prime objective of growth-oriented policies, alongside productivity and employment, Going for Growth 2017 argues. 

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How to escape from the low-growth trap

Now is an opportune time to deploy effective fiscal initiatives and promote inclusive trade policies.

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Country snapshots 2017-18

The country snapshots below are extracted from OECD Economic Outlook No 100, November 2016. For details and updates, visit www.oecd.org/oecdeconomicoutlook.

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Getting smart: Korea's creative economy

Since the 1970s, economic growth in Korea has largely been driven by big companies such as Samsung, Hyundai and LG. These so-called chaebol have been remarkably successful, but have dominated the economy, with little room for small and medium-sized businesses (SME) to gain traction and grow. 

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Country snapshots 2017-18: Argentina

Economic growth is projected to rebound strongly in 2017 and 2018 as the impact of recent reforms and changes in economic policy start to gain traction. Inflation remains high but it will gradually decrease towards the central bank’s target owing to widening economic slack and as the effect of administrative price increases and past currency depreciation wear off. Stronger growth will reduce unemployment from its current rate of 8.5%. 

australia,oecd,economics
Country snapshots 2017-18: Australia

Economic growth is projected to pick up to 3% by 2018. The decline in resource-sector investment will tail off and the non-resource sector will be supported by a steady increase in household consumption and investment as wages and employment rise. Further falls in unemployment will help reduce inequality and are not expected to generate strong inflationary pressures.