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Trusting in crowds

“Crowdsourcing” pools the strength of the many to perform complex tasks–everything from funding a film to sequencing DNA. At its heart is trust–not a blanket belief in great institutions, but rather the confidence between individuals that each will do the right thing. Its power is being increasingly felt today, even in the world of international development.




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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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OECD Central Government Debt Statistics

Governments are major issuers of debt instruments in the global financial market. This volume provides quantitative information on central government debt instruments for the 34 OECD countries.




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It’s all about people: Jobs, equality and trust

More than five years into an economic crisis which has taken on several names–from subprime crisis and financial crisis to great recession–no term accurately depicts the fundamental result of this economic turbulence: people facing hardship.




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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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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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Trust in leaders

Apparently, the United States enjoys a surplus of deficits. President Obama’s first State of the Union address warned that we are weakened and endangered not only by our financial deficit, but also by a deficit in trust.




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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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OECD Insights: The serpent in the lobby

Article by Patrick Love on lobbying in latest edition of "OECD Insights", 27 June 2013.




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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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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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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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Japan's challenging debt dynamics

This working paper presents the background and the details of the simulations behind Box 1.4 of the May 2013 OECD Economic Outlook. A small simulation model is used to evaluate the contribution that the three pillars of the government’s strategy – fiscal consolidation, growth-boosting structural reforms and higher inflation – could make to reversing the rise in Japan’s public debt ratio.




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Insights Blog: Stats and the city

An article from the OECD Insights blog about the Metropolitan Explorer - a nifty tool from the OECD that lets you explore statistics for 268 metropolitan areas in OECD countries.




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Insights Blog: Do you "Like" your government as much as Chileans Like theirs?

Today’s post is by Arthur Mickoleit of the OECD’s Directorate for Public Governance and Territorial Development. Inputs from Kareen Schramm and Sofia Varas of Chile’s Ministry General‑Secretariat of the Presidency are gratefully acknowledged.




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Regional Development Policy Newsletter: Autumn 2013

Newsletter on regional development for autumn 2013.




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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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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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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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Insights Blog: Government budget, read all about it!

Today’s post is from Kate Lancaster, editor in charge of publications on government finance at the OECD. Government budgets are news. Tough choices have had to be made in these challenging economic times and we’re all interested in how our governments are managing our money.




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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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Rural-Urban Partnerships: An Integrated Approach to Economic Development

This report provides a framework to understand the changing relationships between urban and rural areas. Specifically, it documents the characteristics of these partnerships and the factors that can hinder as well as enable rural-urban co-operation.




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Improving innovation policy and ensuring good governance would help raise living standards in Colombia, OECD says

Good public policies are central to well-functioning economies. Better policies on innovation, combined with high-quality regulations and a more efficient public administration, can help Colombia create jobs, boost economic growth and support development, according to three new OECD reports.




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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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Governments can do more to regain trust, says OECD report

The global economic crisis has undermined trust in government. Today only four out of ten citizens in OECD countries say they have confidence in their national authorities. Not surprisingly, trust declined in the countries hit hardest by the crisis, such as Ireland, Greece, Slovenia and Portugal.