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ECONOMICS in an Uncertain World, We’Re Here to Support Contents ECONOMICS In an uncertain world, we’re here to support Contents Preface 4 2. The way we work 8 1. Introduction 6 Overview 10 2 | OECD Economics Department Who we are 169 Staff 31 Nationalities Contents 3. Our focus in 2021 and beyond 4. How we deliver COVID-19 Our flagships: A broad perspective – Reshaping macroeconomic policies 12 – analysis and advice 16 – Productivity 13 Tools 20 Resilience: Protection against the next shock 14 Impact 22 Sustainability: The path to low carbon growth 15 Cooperation 23 OECD Economics Department | 3 Economics Preface Laurence Boone, Chief Economist We are here to support. Our mission is to help policymakers understand the challenges they face. We support ministers to make decisions that make their countries better. And we assist governments as they work together to tackle global challenges. Welcome to our new brochure, and our vision for 2021 and beyond. Life as a policymaker is always difficult: time is tight, the workload huge. Today, things are even tougher: the world has changed, with the Covid-19 pandemic leaving challenges that will linger for years. Recognising this, we provide a one-stop shop offering trusted advice, from short-term policy analysis to long-term visions for reform. Our broad scope means we can help countries respond to acute shocks, such as the pandemic, and also work with them to tackle the perennial challenge of delivering strong inclusive and sustainable growth. We strive to be prompt, offering actionable policy steps and tracking our members’ progress against them to provide incentives for change. Taken together, our work makes the world a better place. Our department is unique, combining cross-country research with detailed national knowledge from our country desks. These links help in two ways. First, they give us a unique perspective: we get the breadth and benchmarking from an international angle, together with depth and detail from our country experts. Second, our work becomes a bridge between rigorous analysis and the real-world challenges of practical policy implementation. We set out a clear diagnosis and set of priority reforms for each country, while always striving to apply the latest research in a way that is helpful for policy-making. By linking up with specialised OECD directorates we provide a unique economy-wide perspective. This creates a positive feedback loop, each team both helping and benefiting from the help of others. We are here to help advanced economies and emerging economies, our founding members, the newest joiners of the OECD and the key OECD partners. We win our members’ trust and confidence by the quality of our work, but also of our staff. We prioritise ideas over hierarchy and seek to recruit and retain the best talent. Our staff frequently visit policy-making institutions to deepen their understanding. Just as the OECD membership is increasingly diverse, so are our teams, which are made up of people with 31 nationalities. Whether discussing the frontiers of academia or the practicalities of policy each ECO staff shares the same overarching vision—we are here to help. 4 | OECD Economics Department “Life as a policymaker is difficult: time is tight, the workload huge. We ease the burden by providing a one- stop shop – a trusted advisor offering short-term policy suggestions and 10-year visions for growth.” OECD Economics Department | 5 1 Introduction Successful economic policy rests on adopting a reform state of mind. Getting into this mindset starts with the best information and analysis. The Country studies branch helps this happen by connecting the dots: we follow around 50 countries, including the largest market economies in the world. Our Economic Surveys assess a country’s economic condition in a tailored way, with special features illuminating the most pressing challenges the country is facing. These could be the COVID pandemic, digital transformation, climate change or population ageing. We then set out concrete steps policymakers could take to deliver reforms, may that be for a better business environment, competitiveness and job creation, ultimately making economies more resilient and raising well-being. Álvaro Pereira We recognise that reform can be hard: even countries with a Director of Country Studies Branch strong tradition of policy innovation can have sectors and markets with entrenched inefficiencies. Here, the greatest asset we offer is perspective. We show policymakers where their countries stand by benchmarking them against the data, indicators and experiences of other countries. We have been conducting Surveys for 60 years, each one of them based on close engagement with national authorities. These relationships of trust enable us to gain insight into the reforms that improve people’s lives. Our teams all have the ‘reform state of mind’, and our expertise, perspective and history helps governments adopt it too. “Our teams all have the ‘reform state of mind’, and our expertise, perspective and history helps governments adopt it too.” Isabell Koske Deputy-Director of Country Studies Branch 6 | OECD Economics Department Policy reform is increasingly complex. One reason is the breadth of expertise needed: decision makers face a growing list of challenges from slowing growth and rising inequality to climate change, population ageing and digitisation. These trends often interact, offset or reinforce one another as economies evolve. A comprehensive analysis needs to take all this into account, while considering how people react, the attitudes they take, and how expectations shift over time. It is a daunting task, which the recent pandemic has made even tougher. Our distinctive approach starts with sound evidence and analysis. A cross-country view helps our branch compare policies and outcomes to help governments address the multiple policy challenges they face. We are driven by what matters for policymakers, not Luiz de Mello particular topic headings. So we look at labour and product markets, Director of Policy Studies Branch innovation, education and skills, and social protection. And at the macroeconomic level we examine fiscal, monetary and financial policies. This lets us understand the trade-offs, synergies and unintended consequences of policy actions. We consult national experts and embed their feedback in our information gathering process. This consultation process is unique to the OECD and makes us well placed to formulate and evaluate policy initiatives in a way that reflects unique country circumstances and needs. The world remains complex, but our advice offers a simpler menu of options, and a practical route forward. “Sound policy advice requires strong empirical evidence and analysis to identify challenges, lessons and good practices that can be used to inform decisions.” Alain de Serres Deputy-Director of Policy Studies Branch OECD Economics Department | 7 2 The way we work The way we work Our structure delivers open and frank discussions and advice. Chief Economist and Directors l Oversees the work programme of the Department and manages its budget. l Advises the Secretary-General on economic issues and represent the OECD in international fora. Policy Branch Country Studies Branch l Produces in-depth cross-country analysis on a wide l Conducts country-specific analysis reported in the range of macroeconomic and structural policy topics. Economic Surveys. l Coordinates the production of the Economic Outlook l Short-term analyses and forecasts reported in the and Going for Growth. Economic Outlook and Going for Growth. COMMITTEES AND THEIR FUNCTIONS Peer review: Horizon scanning and dialogue: The Economic and Development Review Committee The Economic Policy Committee (EPC) reviews and (EDRC) is at the core of the OECD’s peer review provides surveillance to spot both short- and long- mechanism. With representatives of all 37 OECD term economic challenges. Made up of senior officials governments and the European Commission it from member countries, the EPC relies on the work of examines structural economic trends and policies three key working groups. The first (STEP) focuses on in member and partner countries. Each economy short-term economic prospects, the second (WP1) on is reviewed about every two years, its performance medium-term economic trends. These perspectives assessed, and recommendations made. help the EPC judge both immediate risks and important changes and pressures that may be on the The results are published as a country Economic horizon. Survey. The aim is to promote a better understanding of a country’s situation and challenges, and set out The third group (WP3) brings together the most senior ways to improve policy. The Surveys are reports of officials from Finance Ministries and Central Banks the committee and are agreed by consensus adding from 10 of the OECD’s original members. Its focus is weight to the conclusions. international stability and sustainability risks and the ways in which national decisions—in particular monetary and fiscal policies—interact and affect the system as a whole. The size of the group, meeting under Chatham House rules, ensures candour and genuine interaction. 8 | OECD Economics Department The way we work Social partners Labour unions Academics Government Civil Central Society Bank STAKEHOLDERS Discussion and consultation with top policymakers, such as Minister of Finance, Central Bank D Governor, labour unions and i sc business groups u s Recommendation s io adopted n D i s c u Committees s Representatives from s i o member countries and n HOW WE WORK European Commission Discussion & review Analysis & Economic policy settings proposals & peer review ECO’s committees EDRC EPC WP 3 WP 1 STEP ECO Data Reports & tools Research & analysis Benchmarking Forecasts OECD Economics Department | 9 Overview Economics Department Our focus COVID-19 Understanding how the pandemic has in 2021 changed the world and the rethink of policies that is required. Designing policies to deliver a dynamic business sector, well and beyond allocated resources, and productivity growth. Resilience Clarifying challenges, exposing vulnerabilities and gaps, so that policy can address them.
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