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Indonesia should improve governance, productivity and tax collection to promote inclusive growth

Indonesia has improved its macro-economic and structural policies over the last 15 years. Its economy, with strong and stable growth rates of 5–6.6%, is catching up with other countries in the region and allowing Indonesia to focus on its development agenda.




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The role of the Centres of Governments in meeting today’s economic challenges

Secretary-General Angel Gurría welcomes a network of senior officials attending the 31st Centres of Government (COG) meeting held in London. Highlights include the importance of institutions in economic reform through improved co-ordination, outreach and transparency.




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How respecting rules can lead to a better life

Individual freedom can only exist within the social context in which people live, and among the ways in which it is possible to exercise this freedom, that of respecting democratic rules deserves a special place.




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Improving the tax system in Indonesia

Indonesia has come a long way in improving its tax system over the last decade, both in terms of revenues raised and administrative efficiency. Nonetheless, the tax take is still low, given the need for more spending on infrastructure and social protection.




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G20 ministers welcome OECD disaster risk assessment and financing framework

G20 Finance Ministers have welcomed a new OECD/G20 framework designed to help governments develop financial strategies for disaster risk management.




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The euro: A message of solidarity

by Charles Jenkins, Writer, Commentator and former Director of Western Europe Country Analysis, Economist Intelligence Unit, London. The EU’s crisis has as much to do with leadership and solidarity as resolving fiscal and debt problems. It is time to dispense with caricatures and write the next chapter in the EU’s ongoing history. And for that, clear and transparent data will be needed.




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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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Water in Latin America and the Caribbean: better governance can improve access

In Latin American and Caribbean countries the population is growing faster than the world average, intensifying land use and increasing urbanisation. The region is also prone to the negative impact of climate change and natural disasters, putting further pressure on natural resources.




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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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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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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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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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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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How to get it right: government balances, growth and income inequality

Austerity programmes to restore order to public finances can add to the woes of already struggling economies, leading to more job losses and social hardship. But there are ways for governments to put their fiscal houses in order, while supporting growth and reducing income inequality at the same time.




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Making the tax system less distortive in Switzerland

The tax burden in Switzerland is low in international comparison, largely reflecting the substantial non-tax compulsory contributions towards the health and pension systems which are managed by private institutions. Taxation of personal income and labour earnings is relatively high, whereas the taxation of consumption is low.




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Cities: green policies can contribute to growth

Cities can generate growth and jobs while becoming greener – this is the message of the OECD’s new Green Growth in Cities report. Drawing on case studies of Paris, Chicago, Kitakyushu and Stockholm, the report identifies green policies that can respond to urban growth priorities and suggests how to implement and finance them.




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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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Mexico must invest more in disaster risk prevention to support sustainable development

Mexico regularly faces a wide range of natural hazards, including earthquakes, tropical storms and floods. Over the years, the National Civil Protection System has improved its institutional and operational preparedness to manage these disruptive events. But more can be done to avoid future losses and at the same time support sustainable economic development.




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Workshop: Accessibility to services in regions and cities - Measures and policies

This workshop is to discuss the policy relevance of inequalities in the access to services in regions and cities, including the institutional and territorial organization for service delivery.




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Better civil justice systems can boost investment, competition, innovation and growth, OECD says

Well-functioning judicial systems play a crucial role in determining economic performance – notably by guaranteeing the security of property rights and the enforcement of contracts – but not all countries’ judiciaries operate at the same level of efficiency.




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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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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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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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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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Deleveraging: challenges, progress and policies

In the run-up to the financial crisis, indebtedness of households and non-financial businesses rose to historically high levels in many OECD countries; gross debt of financial companies rose dramatically relative to GDP. Much of the debt accumulation appears to have been based on excessive risk-taking and exceptional macro-economic conditions and therefore not sustainable.




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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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Workshop on competition assessment in Regulatory Impact Analysis (RIA)

The OECD, in co-ordination with Mexico's Ministry of Economy and COFEMER, organised a workshop to train federal officials to understake competition assessment as part of the RIA framework.




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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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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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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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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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Ministerial meeting: Regions and Cities - Where Policies and People meet

Ministers responsible for regional, urban and territorial development from around the world will gather in Marseille, France on 5-6 December 2013 to share good practices and future opportunities in three areas: effective public investment strategies, inclusive growth in cities and regions, and new frameworks for fitting policies to places.




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Improved multi-level governance key to tackling widening regional inequalities and ensuring inclusive recovery

The economic crisis has hit certain regions and cities harder than others in the OECD area, calling for better regional policies across levels of governments to foster an inclusive and sustainable recovery, according to two new OECD reports.




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New econometric estimates of long-term growth effects of different areas of public spending

Using panel data for OECD countries, this study investigates the extent to which changes in government spending on education, health and other areas influence long-term growth.




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Illicit Financial Flows from Developing Countries: Measuring OECD Responses

Strengthening OECD firewalls can only do so much to combat a phenomenon which thrives on weak governance. This report highlights that donor agencies can support this goal through their central role in linking OECD and developing countries, and using their aid to support governments willing to tackle these issues.




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Blog: Trust in Government - Causes, consequences and solutions

This blog post on trust in governments is a compilation of presentations given at the OECD Workshop entitled "Joint Learning for an OECD Trust Strategy", held on 14 October 2013.




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Blog: Transparency and governance in the land sector - Two sides of the same coin?

This blog, written by ODI's Anna Locke, discusses land governance and transparency definitions, initiatives and key lessons. The post is part of Wikiprogress' spotlight on governance.




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The effect of government debt, external debt and their interaction on OECD interest rates

In the wake of the financial crisis there has been renewed focus on the importance of a country’s net external debt position in determining domestic interest rates and, relatedly, its vulnerability to a crisis. This paper extends the panel estimation of OECD countries described in Turner and Spinelli (2012) to investigate the effect of external debt and its interaction with government debt on the interest-rate-growth differential.




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Blog: How should we measure quality of life in urban centres?

This blog, written by David Satterthwaite with the International Institute for Environment and Development (IIED), discusses what indicators are needed in order to assess the quality of life of the urban poor.




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Public consultation: Draft principles on the governance of critical risks

The OECD has launched a public consultation on its draft principles on the governance of critical risks.




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Recommendation of the OECD Council on Effective Public Investment Across Levels of Government

Recommendation of the OECD Council on Effective Public Investment Across Levels of Government




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Dutch water governance faces challenges from demographics and climate

The Netherlands is a global pioneer in water management with a long history of containing flood risks and reclaiming land from the sea. Yet it will need to adapt its water governance policies to meet the looming challenges of shifting demographics, regional development and climate change, according to an OECD report.




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Principles of Budgetary Governance

These principles give practical guidance for designing, implementing and improving budget systems to meet the challenges of the future. They are currently being considered as a draft Recommendation of the OECD Council, underpinning their importance to good public governance.