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OECD Observer Celebrates 50 Meeting the Global Water Challenge Norway’s gender experience Euro area: Why solidarity matters Israel’s progress report Special focus: Policymaking and the information revolution No 293 Q4 2012 www.oecdobserver.org OECD Observer celebrates 50 Meeting the global water challenge Nestlé’s Aman Bajaj Sood (left) and farmer Harinder Kaur take part in a Farmer Water Awareness Programme provided near the Nestlé factory in Moga, India. Through our Creating Shared Alongside our other CSV key > Public policy Value reporting, we aim to share focus areas of nutrition and > Collective action information about our long-term rural development, this year’s > Direct operations impact on society and how this report summarises Nestlé’s > Supply chain is linked to the creation of our response to the water challenge > Community engagement long-term business success. in five key areas: Visit the CSV Section of our website for a complete report of our progress, challenges and performance in 2011 www.nestle.com /csv CONTENTS No 293 Q4 2012 Meeting the global water challenge READERS’ VIEWS 20 Combating terrorist fi nancing in the 2 Corporate tax responsibility; Labour advice information age Rick McDonell, Executive Secretary, EDITORIAL Financial Action Task Force 3 From the information revolution to 21 Africa.radio a knowledge-based world Roman Rollnick, Chief Editor, Advocacy, Angel Gurría Outreach and Communications, UN-Habitat 22 Is evidence evident? NEWS BRIEF Anne Glover, Chief Scientifi c Adviser to the 4 Crisis drives up social spending–as tax President of the European Commission revenues rise; Soundbites; Economy; 24 News that’s fi t to post Monique Villa, CEO of the Thomson Special Focus: Policymaking and the information Country roundup; Rebalancing act; revolution, from page 11 Pensions struggle; Plus ça change… Reuters Foundation From November 1962 26 Asia’s information revolution John West, Executive Director, SOCIETY Asian Century Institute 6 Women in work: The Norwegian experience 28 The changing art of language Sigbjørn Johnsen, Minister of Finance, René Prioux Norway 29 Found in translation 8 Israel reports progress 30 Ad sense Interview with Sharon Kedmi, Director Interview with Richard Huntington, Strategy General of the Ministry of Industry, Director, Saatchi & Saatchi Trade and Labor, Israel 32 How the world wide web was won Robert Cailliau, Computer Scientist and Co- SPECIAL FOCUS: POLICYMAKING Founder of the World Wide Web, and James AND THE INFORMATION REVOLUTION Gillies, Director of Communications, CERN Is knowledge management up in the air? Page 37 11-15 Policymaking and the information 34 Face to Facebook with civil society revolution Phil Evans, Senior Consultant, FIPRA 12 Mandela’s cell number 35 The OECD Observer story 14 Trading in facts 36 Beyond blogonomics Ken Ash Henry Copeland, CEO, Blogads 15 Education for policymakers and Pressfl ex.com Barbara Ischinger 37 Last word: Up in the air? 16 Managing information and communications Rolf Alter in a fast-changing world ECONOMY Nestlé’s Aman Bajaj Sood (left) and Lester Rodriques and Jim Black farmer Harinder Kaur take part in a 17 Can big data deliver on its promise? 40 Policy can brighten the economic outlook Farmer Water Awareness Programme Martine Durand Pier Carlo Padoan provided near the Nestlé factory in 18 Information society: Which way now? 41 Spanish immigrants A plea for euro solidarity, page 44 Moga, India. Andy Wyckoff 42 Energy effi ciency: A true alternative 19 Getting to know each other: The OECD and Interview with Fatih Birol, Chief Economist Latin America and Director of Global Energy Economics, José Antonio Ardavín International Energy Agency (IEA) Through our Creating Shared Alongside our other CSV key > Public policy Published in English and French by the OECD All signed articles and letters express the opinions of the Value reporting, we aim to share focus areas of nutrition and > Collective action EDITOR-IN-CHIEF: Rory J. Clarke authors and do not necessarily represent the opinion of SENIOR EDITOR: Ricardo Tejada the OECD. information about our long-term rural development, this year’s > Direct operations www.oecdobserver.org EDITOR/WEB: Loïc Verdier Reprinted and translated articles should carry the credit line © OECD December 2012 WRITER: Lyndon Thompson impact on society and how this report summarises Nestlé’s > Supply chain “Reprinted from the OECD Observer”, plus date of issue. Signed EDITORIAL COORDINATOR: Marie Francolin articles reprinted must bear the author’s name. Two voucher ISSN 0029-7054 EDITORIAL ASSISTANTS: Rose Foran, Laetitia Sieff ert copies should be sent to the Editor. All correspondence should is linked to the creation of our response to the water challenge > Community engagement Tel.: +33 (0) 1 45 24 80 66 be addressed to the Editor. The Organisation cannot be respon- Fax: +33 (0) 1 45 24 82 10 LAYOUT: Design Factory, Ireland sible for returning unsolicited manuscripts. long-term business success. in five key areas: [email protected] ILLUSTRATIONS: André Faber, David Rooney, Stik PHOTO RESEARCH: Rory Clarke The statistical data for Israel are supplied by and under Founded in 1962 The magazine of the Organisation LOGISTICS: Jochen Picht the responsibility of the relevant Israeli authorities. for Economic Co-operation and Development The use of such data by the OECD is without prejudice ADVERTISING MANAGER: François Barnaud to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the Visit the CSV Section of our website for a complete report OECD Publications 2 rue André Pascal Applications for permission to reproduce or translate all or parts terms of international law. www.nestle.com /csv 75775 Paris cedex 16, France of articles from the OECD Observer, should be addressed to: of our progress, challenges and performance in 2011 [email protected] The Editor, OECD Observer, 2 rue André Pascal, 75775 Paris, www.oecd.org cedex 16, France. Readers’ views We welcome your feedback. Send your letters to [email protected] or post your comments at www.oecdobserver.org or www.oecdinsights.org President François Hollande at the OECD, Page 48 Corporate tax responsibility One has the impression that various forms of There’s a legal and new political theory that labour market fl exibility seem to be considered 44 The euro: A message of solidarity corporations are as citizens (or persons): the by the OECD as sound advice, regardless Charles Jenkins, Writer, Commentator and implication being that corporations have of what specifi c country problems may former Director of Western Europe Country effective rights. A refl ection of this is the exist. When times are good, when times are Analysis, Economist Intelligence Unit, London 2010 Citizens United ruling by the US bad, when infl ation is low, when infl ation is 46 Business brief Supreme Court. high, when profi ts are low, when profi ts are high, when unemployment is low and when OECD.ORG Along with rights come responsibilities–one it is high. It is as if a doctor were capable of 48 French President François Hollande at the of them being to pay your fair share of taxes. making a diagnosis, but only able to write one OECD For example, a US citizen (as well as a resident 49 Mexican President-elect Enrique Peña prescription. alien), is obliged to report all global income, Nieto at the OECD: A common vision; and pay taxes on that amount, with some There are many problems in Turkey, but Peru eyes membership; Competitiveness challenge deductions, including for taxes paid overseas– excessive protection of workers’ rights is not 50 Well-being priority; Video view: The blue even if you live abroad. This limits most of and has never been among them. And, creating economy; Totalled recall the tax advantages of establishing an income precarious work in the “formal sector” in 51 Recent speeches by Angel Gurría; New source or residence in a tax haven. order to entice a shifting of resources from ambassadors the “informal sector” is neither sound advice in In addition, higher income earners are subject 52 Calendar; Frankie.org terms of economic and social development nor to the Alternative Minimum Tax (AMT): in terms of strengthening democracy. BOOKS basically, if you earn above a certain income, 53 A calm look at social unrest; Still booming you can no longer exploit every tax loophole. The informal economy stems primarily from 54-57 New publications on OECD iLibrary failures of governance, not from protecting In theory, as with citizens, corporations are 58 Vive la réforme workers. Other European countries with better subject to similar tax constructs, but as the ORDER FORM…ORDER FORM labour laws and enforcement do not have a on-going debates over corporate tax avoidance larger informal economy; but a far smaller one. DATABANK demonstrate, the tax reality for corporations is 61 Emerging innovators; Study abroad far different than for persons. Turkey needs major reforms in labour laws to 62 Main economic indicators bring them up to ILO standards. It is extremely So, if corporations are people, why don’t they 64 Investment dries up; Take a walk diffi cult for workers to form trade unions pay effective minimum tax rates on global and the thresholds for collective bargaining income? discourage rather than encourage its practice. Norway’s gender experience Euro area: Why solidarity matters Israel’s progress report Mark Feige Special focus: Moreover, reforms should encourage Turkish Policy in the Information World No 293 Q4 2012 www.oecdobserver.org Economist, Washington D.C employers to show respect for the human rights of their workers. Labour advice You paint a positive picture of Turkey’s It hardly seems reasonable to attack economy in terms of growth of GDP and the few remaining protections in law. employment (OECD Observer No 290-91, Jim Baker OECD Observer celebrates 50 Q1-Q2 2012). Nevertheless, the interview states Coordinator, Council of Global Unions that for the future of the Turkish economy, On the cover: New logo Comments and letters may be edited The 50th anniversary cover, which displays a collection of covers taken “labour market reform is key, especially to for publishing.
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