Tag Archives: OECD

Ideas and the value of international organisations

Posted on by

Periodic reflection on positive things in life can change one’s attitude for the better and create a more open attitude to new opportunities. I use such reflections to develop my List of Positive Things, which I keep on my iPod and update a few times a week during my commute to work. I sometimes scroll through the list and come away feeling renewed. For example, I’ll do this after a bad day at the office or when looking for ideas for new projects. Among the multitude of topics, the value of international organisations is one that comes up repeatedly.

The value of international organisations: a few entries from my list of positive things

This list is not comprehensive, but rather focuses on the topic of international organisations and ideas. It reflects observations arising from the course of my work at an international organisation (20+ years).

  • International organisations have helped to develop innovation as a field of study in its own right. This provides a powerful, cross-cutting perspective on the economy that can deliver policy insights that otherwise may be missed. The Innovation Strategy initiative of the Organisation for Economic Co-operation and Development (OECD) is an example of this type of work.
  • International organisations have supported a vast, on-going wave of research on a range of topics. Analysts will sometimes develop research that is remarkable for its novelty or depth. This can lead to concrete ideas for ways to improve economic performance.  Many papers resulting from this work have been posted on the Social Science Research Network. (I’m grateful to this network for making available and distributing a broad range of papers. Browsing the abstracts, I can follow developments in my field. Some of the material is relevant to my current research and some inspires new research directions.)
  • International dialogue at OECD and other international organisations can lead to creativity and diffusion of ideas. In some cases, this can promote understanding where there was a risk of conflict. Some dialogue happens via the day-to-day operations inside these organisations. Some of it takes place at international conferences and workshops, where various stakeholders come together. 
  • Staff at international organisations, particularly analytical staff, often demonstrate a high level of professional competence. I am continually impressed by the intelligence, dedication and energy that many of my colleagues bring to their work. This is often accompanied by a strong desire to promote development and make the world a better place. There are certainly occasional problems associated with ambition, turf, bureaucratic intrigues and politics (both within the organisations and among their member countries). But, on balance, the staff calibre is high.  
  • Improving government policy: International comparisons and peer review can be powerful catalysts to stimulate positive changes in government. The process of sharing and learning among experts is often catalysed by new insights from staff papers from international organisations. It is great to see this process in operation!

 Bottom line: International organisations can be powerful sources of new ideas for government, private sector, academia and non-governmental organisations. While there is certainly room for improvement in their operations (e.g., via better management practices and evaluation), the contributions of these organisations to making the world a better place should not be underestimated.

 

 

 

International Trade and Jobs – A Good Partnership

Posted on by

Economists generally agree that free trade is a good thing for the economy. It provides producers with access to global markets (and therefore potential to become more efficient by specialising and seeking economies of scale in their operations). It provide consumers with greater choice, including access to new types of products and new varieties of existing product types. It increases competition, which spurs innovation and productivity increases and limits growth in prices. In addition, market openness can provide access to world-class imported inputs, which in turn can improve the economic performance — including export performance — of domestic industries.

But, trade has taken a few hits in recent years, as it is sometimes viewed mainly as a source of economic disruption. Spurred by trade, economies adjust and that may mean that some folks in import-competing sectors may face economic hardship as a result. At the same time, such adjustment can be a good thing, promoting a better deployment and use of resources (hence rising productivity, which helps enable wages to rise). Here, there is a role for government to ensure the right conditions exist for business and workers to capitalise on the new economic opportunities arising from trade. In other words, for market openness to deliver the expected benefits, complementary policies are required.

For workers, this means government has a role in providing a social safety net to ensure that those facing adjustment can get the assistance they may require to find a new job, get training they may need to adapt, and get income during the adjustment period. For business, this means government policies to promote infrastructure development, keep the overall economic framework sound (e.g., avoiding undue inflation), limit red tape, and maintain sensible regulation, as well as provide a supply of labour with appropriate skills. And, to tie it all together, there is a need for clear rules of the game and standards for business and labour, as well as channels for frank and open discussion and social dialogue.

This is not just abstract theory. A new and substantial round of work by the OECD and other international organisations has looked at how some of these processes operate in the real world. The findings document the benefits of market openness and the importance of the complementary policies. Above all, experience demonstrates that protectionism is not the answer to the challenges of free trade. The economy as a whole is made much better off through a strategy to promote free trade while addressing the challenges that such a policy will entail.

You can find out more via the OECD website:

1) Trade, Growth and Jobs (in a nutshell, 4 pages)

2) Policy Priorities for International Trade and Jobs (the full story, 450 pages)

What in the world is OECD?

Posted on by

Among the alphabet soup of big international organisations like IMF, UN or WTO, the OECD is perhaps one of the less well understood. OECD stands for Organisation for Economic Co-Operation and Development. Located in Paris, the OECD was established as a successor to the Marshall Plan, to serve as forum for policy development and review. Membership consists of a broad group of democratic, market oriented, industrial (or now post-industrial) countries of the world.

Here in Paris, OECD Week at OECD Headquarters is an annual public forum and ministerial meeting. Click here to see the 2019 materials.