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Table of Contents Letter from the Secretary-General 4 Trade and Agriculture Directorate 92 2016: A Year in Review 8 Environment Directorate 94 Centre for Tax Policy and Administration 96 ABOUT THE OECD Statistics Directorate 98 The OECD at a glance 12 Directorate for Public Governance Secretary-General’s Cabinet 14 and Territorial Development 100 Organisation chart 16 Public Affairs and Communications Directorate 102 Financing the OECD 18 Development Co-operation Directorate 104 MINISTERIAL COUNCIL MEETING Centre for Entrepreneurship, SMEs, Local Development and Tourism 106 Secretary-General’s Strategic Orientations 2017 20 Global Relations Secretariat 108 Ministerial Council Meeting 2016: Executive Directorate 110 Statement 42 Internal Audit and Evaluation 111 Ministerial Council Meeting 2016: Directorate for Legal Affairs 112 Chair’s summary 50 Council and Executive Committee Global Strategy Group 2016: Secretariat 113 Chair’s summary 60 SPECIAL BODIES KEY ACTIVITIES Development Centre 116 Secretary-General’s Activity in 2016 66 International Energy Agency 117 Digital transformation 70 Nuclear Energy Agency 118 Migration 71 International Transport Forum 119 International co-operation 72 The OECD Better Life Initiative 73 SPECIAL ENTITIES Financial Action Task Force 122 DIRECTORATES Multilateral Organisation Performance Office of the Secretary-General 76 Assessment Network 123 Sherpa Office and Global Governance Unit 78 Partnership in Statistics for Development in the 21st Century 124 New Approaches to Economic Challenges (NAEC) and the Inclusive Growth Initiative 80 Sahel and West Africa Club 125 Economics Department 82 ADVISORY COMMITTEES Directorate for Science, Technology and Innovation 84 Business at OECD (BIAC) 128 Directorate for Financial and Enterprise Trade Union Advisory Committee 129 Affairs 86 Directorate for Employment, Labour and Social Affairs 88 Directorate for Education and Skills 90 \ \ \ OECD / Secretary-General’s Report to Ministers 2017 Letter from the Secretary-General Angel Gurría, OECD Secretary-General, and Shinzo¯ Abe, Prime Minister of Japan, at the presentation of the OECD Economic Survey of Japan, April 2017 Over the past twelve months, the Throughout 2016, we began to environmental degradation and OECD has continued delivering take stock of the need to urgently a loss of trust in democracy and on its mandate to promote better address this backlash against its institutions, not to mention policies for better lives. We have globalisation. This implies several global systemic risks. We done so despite an increasingly drawing on the best in us, while need new, audacious solutions to challenging context that puts addressing our shortcomings, tackle these challenges. into question the raison d’être of taking bold steps moving forward, our Organisation. While the past and fixing what does not work. Drawing on the unprecedented year brought great achievements, Going back to “business as usual” transformation that the OECD it also witnessed how the values is not an option: we need a new has undertaken in recent years of international solidarity, co- narrative and new solutions to by putting people at the centre operation and openness that we confront the challenges of our of its work – recognising that stand for came under attack due time – stagnant growth and living economic growth and its drivers to a resurgence of nationalism, standards, enduring poverty, are only means towards the isolationism, populism and rising inequalities, growing end goal of better lives for all protectionism. protectionism, climate and – throughout the year we took 4 Secretary-General’s Report to Ministers 2017 – © OECD 2017 \ \ \ OVERVIEW / Letter from the Secretary-General great strides towards renewing and strengthening our analytical frameworks and making a “New Approaches to Economic Challenges (NAEC) state of mind” our Organisation’s new normal. Our horizontal projects on inclusive growth, digitalisation and migration are also allowing us to approach these major themes from a multi-dimensional perspective, better tailored to their inherent complexity. Our 2016 Ministerial Council Meeting, chaired by Chile, focused precisely on such interlinkages between policy areas, by highlighting how our policies to foster productivity need to come Angel Gurría, OECD Secretary-General, and Angela Merkel, Chancellor of Germany, at hand in hand with our efforts to the presentation of the Economic Survey of Germany 2016, April 2016 ensure inclusiveness and reduce inequalities – not just as a mere palliative afterthought, but from lays out an agenda for further agenda with the launch of their very onset and design. At the research. the OECD Global Forum on Forum, we launched our study on Productivity and deepened our the Productivity-Inclusiveness Nexus, During the year, we advanced our work on Global Value Chains which deals with this issue and productivity and competitiveness (GVCs), including expanding and developing our Services Trade Restrictiveness Index (STRI) and Trade in Value Added (TiVA) databases. At the same time, the OECD Centre for Opportunity and Equality (COPE), our work on gender, children and youth, the new Inclusive Growth in Cities campaign and the update of the Better Life Index have deepened our commitment towards more inclusive economies and societies. This includes progress in areas such as the quality of jobs, healthcare, education and skills systems. We also rolled out the latest Programme for International Student Assessment (PISA) results, with great impact, Alexander Böhmer, Head of Southeast Asia Division, OECD; Angel Gurría, OECD and advanced our initiative on the Secretary-General; Joko Widodo, President of Indonesia; and Pratikno, Minister of State need for global competencies to Secretariat of Indonesia (left to right), October 2016 form more tolerant citizens. Secretary-General’s Report to Ministers 2017 – © OECD 2017 5 \ \ \ OECD / Secretary-General’s Report to Ministers 2017 In 2016 we started “walking the talk” by delivering on the ambitious international agenda set out in 2015. Through the OECD Action Plan on the Sustainable Development Goals (SDGs), presented at last year’s Ministerial, we are gradually integrating the SDGs into our frameworks and advice. At the same time, we are pioneering the design of a new international statistical standard on Official Development Assistance, the Total Official Support for Bilateral meeting between Pravin Gordhan, Minister of Finance of South Africa, and Sustainable Development Angel Gurría, OECD Secretary-General, during OECD Week, May 2016 (TOSSD), as well as leading global efforts to improve domestic resource mobilisation minimum standards. Over 100 many fields, particularly on in developing countries (through countries and jurisdictions have innovation and the digital our Tax Inspectors Without signed up to the new Automatic economy, trade and investment, Borders initiative) and private Exchange of Information standard corporate governance and financial flows into them (through and will begin automatically tax transparency, as well as our updated Policy Framework exchanging tax information. the establishment of a Global for Investment and Investment Following the refugee crisis and Forum on Steel Excess Capacity Policy Reviews).