Informa Sobre Participación De Los

INFORMA SOBRE PARTICIPACIÓN DE LOS DIPUTADOS SEÑORES PABLO LOREN2INÍ (JEFE DE DELEGACIONES SEÑORES DIPUTADOS, MARCELO SCHILLING E ISSA KORT, LOS SENADORES ANDRÉS ZALDIVAR Y JOSÉ GARCÍA RUMINOT, EN SEMINARIO PARLAMENTARIO DE ALTO NIVEL, EFECTUADO POR LA OCDE LOS DÍAS 5 Y 6 DE FEBRERO EN PARÍS FRANCIA

HONORABLE CÁMARA:

Tengo a honra informar acerca de la participación que nos correspondió efectuar en el seminario organizado por la OCDE realizado los días 5 y 6 de Febrero en Paris (Anexo 1) Asistieron formando parte de la delegación, los diputados señor Marcelo Schilling, Issa Kort y el suscrito, como punto focal de la Cámara de Diputados de Chile ante la OCDE. Además en representación de! Senado nos acompañaron los Honorables Senadores Andrés Zaldívar y José García Ruminot. En Anexo 2 se incluyen todos los participantes del seminario.

I.-ANTECEDENTES.

La OCDE en forma anual desarrolla dos Seminarios de Alto Nivel destinado a Parlamentarios de los países miembros, cuyo tema central durante esta versión fue la situación Económica , Financiera y Social y sus proyecciones, así como temas específicos relacionados con Emisiones Contaminantes, Energía, Educación, Cooperación, Innovación y especialmente la situación Tributaria y la Evasión y Elusión. (En Anexo 3 se detalla el programa)

En esta oportunidad , además, se incluyen como participantes a los Parlamentarios de la NATO, alcanzando un total de 113 representantes más especialistas y asesores.

II. REUNIÓN DE TRABAJO PARLAMENTARIO.

Durante la visita tuvimos una reunión de trabajo con e! Sr. Embajador Ignacio Briones, con quien se analizó en detalle las perspectivas del Gobierno de Chile y el Parlamento en relación a la OCDE, especialmente en lo referente a la plataforma con documentos y recomendaciones de política sobre los más variados temas que puedan ser de utilidad para la discusión legislativa en Chile, en esta ocasión destacando el futuro trabajo sobre Impuestos y Reforma Tributaria. L-SEMINARIO PARLAMENTARIO.

El Secretario General de la OCDE, Ángel Gurria dio la bienvenida a las delegaciones integrantes de !a red Parlamentaria de la organización

El Señor Gurria dio un extenso discurso en el cual destacó la participación de la Delegación Chilena y de su reciente visita al país en Octubre pasado. En Anexo 4 se incluye un resumen del discurso del Ángel Gurria.

El Director de Asuntos Públicos y Comunicaciones de la OCDE, Señor Anthony Gooch, dio la bienvenida a los participantes del Seminario Parlamentario.

E! Seminario comenzó con la exposición de !os Profesores y Expertos Pier Cario Padoan, Deputy Secretary - General and Chief Economist, OCDE y Adrián Blundell - Wignall, Deputy Director, Sepecial Advisor ío the Secretary General for Financial Markets, OCDE y Paul Swaim, Sénior Economist, Directorate for Employment, Labour an Social Affairs, OCDE, en la cual principalmente se refirieron a las perspectivas económicas y al panorama del empleo para el año 2014, buscando que los Parlamentarios presentes reflexionen acerca de cuáles elementos deberá contener un marco para políticas públicas, orientadas especialmente a tomar conciencia que a los trabajadores de mayor edad les va relativamente mejor que a los jóvenes en el mercado laboral, que la legislación de protección del empleo se está volviendo menos estricta en estos tiempos de crisis, y que las políticas de activación bien diseñadas sí promueven y ayudan a los desempleados a encontrar trabajo. Un detalle explícito de la exposición de cada uno de los exponentes, se adjunta en Anexo 5.

En relación a la Economía Global, Pier Cario señaló que si bien se aprecia una leve recuperación, existe el riesgo de que la recesión se mantenga y por lo tanto, se requieren de políticas públicas que aseguren un crecimiento más sustentable. Señaló que en las economías más avanzadas se aprecian indicadores positivos pero se mantienen las dudas respecto a la generación de flujos de capitales y los déficit aún son potentes.

Pier Padoan, señaló que todavía esta no se aprecia como consolidada existiendo aún debilidad en las Inversiones, Comercio lento, Créditos Internacionales aún en despegue y el problema del desempleo. Destacó además, que China está creciendo con consistencia pero se aprecia que en deuda pública está creciendo, lo cual es una preocupación. El lado negativo proviene de las economías emergentes. También mencionó la situación del Euro y sus debilidades debido a las dificultades en varios países Europeos. Se expresó por parte de los expositores su preocupación por el tema energético global señalando la dicotomía de que los importadores actuales se convierten en exportadores y vice versa pero las soluciones a futuro aún son inciertas en esta área, especial preocupación respecto al precio futuro de la energía mencionada que los precios señalan que el crecimiento de la demanda por energía se está produciendo en el sur de Asia, significativamente en China e India.

Después de un almuerzo de trabajo y comentarios entre los participantes, se continuó el Seminario con el tema de las emisiones de carbón con la participación de los expertos Simón Upton, Director, Environment Directorate OCDE, Nils Axel Braathen, Principa! Administrator, En vi ron menta I Performance and Information División, Environment Directorate, OCDE. (En Anexo 6 se detalla la exposición)

En la Sesión de la tarde se señaló el cambio de la composición energética con un incremento del gas y renovables. En Anexo 7 se detalla las exposiciones.

Posteriormente, el experto Andreas Schleicher, Deputy Director and Special Advisor on Educatíon Policy to the Secretan/ General, Directorate for Education and Skills, mostró y analizó un reciente estudio sobre la calidad y cantidad de educación requerida y en dicho estudio se mencionó a nuestro país como el de peor resultado PISA (Programa Internacional de Situación de Estudiantes) medido en 65 países muestra que nuestro país tiene en esta materia mucho que avanzar. Este estudio debería ser analizado en detalle en la Comisión de Educación y con las nuevas y respectivas Autoridades. En Anexo 8 se acompaña comentarios sobre la situación en Francia. En Anexo 9 se muestran los resultados del PISA.

El segundo día de trabajo se dedicó especialmente a la Cooperación, cuyo especialista Erik Solheim, Chair, Development Assistance Committee, OCDE, recalcó ¡a urgente necesidad de reforzar la cooperación e intercambio de capitales, relación modo privado - público, compartir agendas, pensando en una comunidad Global, siendo la OCDE un ejemplo de este aspecto.

Luego Mark Pearson, Deputy Director.Dírectorate for Employment, Labour and Social Affair, OCDE, se refirió al problema mundial de la demencia, ya que es un tema al cual nos se le ha dado la debida consideración por los efectos que está teniendo en las familias y en los respectivos sistemas de Salud. Se requiere un esfuerzo especial para realizar diagnósticos y tratamientos efectivos sobre este nuevo problema detectado, buscando una colaboración entre los Sectores Públicos y Privados de Salud para una solución más real. Hizo un llamado a los países a tomar conciencia de este problema y realizar las transformaciones adecuadas especialmente mejorando la prevención y tratamiento de la demencia. En Anexo 10 se entregan mayores detalles.

Por último, se realizó y concretó la ¡dea que se sugirió en el último Seminario de este tipo, realizado el 2 de Octubre pasado en virtud del cual se crea el Grupo de Materias Tributarías, como parte del trabajo Parlamentario. La expositora Grace Pérez - Navarro, Deputy Director, Center for Tax Policy and Adrninisíration OCDE, acompañada de Cornelis de JongJ Member of the European Parliament, Netherlands, y Margaret Hogde, Member of Parliament, UK, recordaron lo actuado hasta la fecha por la OCDE en el Plan de Acción que se determinó. Mucho debate al respecto con ideas especialmente sobre ía evasión y la elusión . En Anexo 11 se adjunta un completo detalle de esta importante agenda.

Otro aspecto también mencionado refiere a las políticas de Innovación, en Anexo 12 se dan algunas ideas al respecto

También se dialogó sobre el combate a la corrupción, terna muy de moda y crucial sobre el cual Ángel Gurria se refirió. En Anexo 13 se acompaña discurso..

Adicionalmente se nos entregó el Informe de la OCDE sobre "Mejor Vida" en Chüe, que analiza diferentes aspectos de nuestra vida común de Ingresos, Trabajo, Comunidad, Educación, Sociedad Civil, Salud, Satisfacción de vida y Seguridad, entregándonos índices al respecto para mayor detalle. En Anexo 14 se pueden tener más antecedentes.

Durante el debate de los diferentes temas ¡os Parlamentarios Chilenos tuvieron importante participación con sus opiniones y señalando la situación Chilena en cada uno de ellos con lo cual, motivaron un encendido intercambio de opiniones con el resto de los Parlamentarios asistentes así como con los expositores en cada área.

Por último, se recordó que el próximo 5 y 6 de Mayo se realizará el Forum Anual en París y el 6 y 7 el Seminario de Ministros de Finanzas, Anexo 15.

Es todo lo que puedo informar a la Honorable Cámara de Diputados.

PAB L Diputado Punto Focal Chile/OCDE

Marcelo Schilling Issa Kort Diputado Diputado OECD SETTER POLICIES FOR SETTER UVES OECD Parliamentary Days

5-7 February 2014 OECD Conference Centre, París

Wednesday, 5 February 2014 OECD International Parliamentary Seminar jointiy with the NATO ParíiamentaryAssembly annual meeting atibe OECD Room CC9

Chair: Anthony Gooch, Director, Public Affairs and Communications Directorate, OECD

08:30 ~ 09:00 Arriva! of participanís and moming coffee

09:00 - 10.30 A conversation with Ángel Gurría, Secretary-General, OECD with remarks by Petras Austrevicíus, Chair, Economics and Securíty Committee, NATO Paríiamentary Assembly

10.30-10.45 Coffee break

10:45 - 12.30 The economic, social and financial situation Pier Cario Padoan, Deputy Secretary-General and Chief Economist, OECD, Adrían Blundell-Wignall, Deputy Director, Specia! Advisor to the Secretar/ General for Financial Markets, OECD, and Paul Swaim, Sénior Economist, Directorate for Empíoyment, Labour and Social Affairs, OECD

12.30-14.00 Lunch for Parliamentarians, co-hosíed by íhe OECD and the NATO Parliamentary Assembly Salle Roger Ockrent, Chateau de la Muette

14:00-15.15 Putting a price on C02emissions Simón Upton, Director, Envtronment Directorate, OECD, Nils Axel Braathen, Principal Administrator, Environmenta! Performance and Information División, Environment Directorate, OECD

15.15 -16.45 World Energy Outlook Fatíh Birol, Chief Economist, Internationa! Energy Agency (TBC)

16.45-18.00 The OECD Skills Outlook and PISA Andreas Schleicher, Deputy Director and Special Advísor on Education Policy to the Secretary-General, Directorate for Education and Skills, OECD

Cocktail Reception with OECD Ambassadors Salle Roger Ockrení, Cháíeau de la Muette SETTER PQUCIES FOR BETTER LIVES

Thursday, 6 February 2014 OECD International Parliamentary Seminar jointly. wfth the NATO Pariíamentary Assembly annuaí meeting at the OECD Room CC9

08:30-09:00 Arrival of participanís and morning coffee

09:00-10.15 Developmentco-operationforpost-2015 EríkSolheim, Chair, DevelopmeniAssistance Commitiee, OECD

10:15-11.30 Addressing dementia: towards a newinnovation model /Warff Pearson, Deputy Director, Directorate for Employment, Labour and Social Afíairs, OECD, Dirk PUat, Deputy Director, Directorate for Science, Technology and ¡ndustry, OECD

11:30-14:30 First meeting of the OECD Parliameníary Group on TaxMatters Grace Pérez-Navarro, Deputy Diredor, Centre for Tax Policy and Administraron, OECD Lunch boxes willbeserved

14:30-18:00 Bilateral meetings with OECD experts and OECD membercountry delegations (upon request) BETTER POLICIES FOR SETTER UVES

OECD Parliamentary Dáys 5-7February2014 ¡ OECD Coníerence Centre, Parisi

Partícipants (as of 5 February, 9arn)

MPs :

1. Andreas Hanger (Austria) 123 ¡ 2. Kai Jan Kraíner (Austria) .3. Daniel Bacquelaine (Belgium) 123 4. Frank Creyelman (Belgium, Flemish Parliamení) 123 ¡ 5. Roel Deseyn (Belgium) 123 ¡ 6. Else de Wachter (Belgium, Flemish Parliament) 123 j 7. Patricia de Waele (Belgium, Flemish Parliament} ^ 23 i 8. KatrinJadirf (Belgium) 1 ¡ 9. Peter Reekrnans (Belgium, Flemish Parliament) : 10. Dirk Van derMaelen (Belgium) 1 ; 11. Stefaan Vercamer (Belgium) \ • 12. Jan Vertaillie (Belgium, Flemish Pariiam&nt) 123 13. Tasko Ermenkov (Bulgaria) 123 14. JoséGarcía Ruminot(Chile) 123 15. Pablo Lorenzlni (Chile) 123 I 16. Marcelo SchiIling.(Chile) 123 ! 17. IssaKort(Chile)!23 ! 18. Andrés Zaldívar (Chile) 123 . ; 19. Boris Blazekovic(Croatia)i23 \. Martina Dalic(Croatia) 123 ' ' ¡

21. Jeppe Kofod (Denmark) i ; 22. John Dyrby Paulsen (Denmark) 123 23. Remo Holsmer (Estonia) 123 - 24. Urve Palo (Estonia) 1 z 25. KalevKallo (Estonia) 12 26. Sven Sester (Estonia) 27. KarineBerger(France)i 28. Jean Bizet (France) 1 29. Christian Cambon (France) 2 30. Christophe Caresche (France) 123 31. Francis Hillmeyer (France) 32. Pierre-Alain Muet (France) 123 33. Valérle Rabault (France) 2 : 34. EricWoerth (France) 3 • 35. JDrgen Hardt (Germany) 12 : 36. Joachim Pfeiffer(Germany)23 i 37. Charles Huber (Germany 123 38. Alexandros Dermentzo'poulos (Greece)12a

Legend: Red - Members of the NATO Parliamentary Assembly; 1- attending 5 Feb; 2- attending 6 Feb; 3-attending Tax 39. GeorgiosKalantzisíGreece)! 40. Christos Karagiannidis (Greece)i2 41. LiamTwomey(lreland)i23 42. SíavShafir (Israel) 123 43. Meir Sheeírit (Israel) !2a 44. Paolo Allí (Italy) 123 45. Andrea Causin (Italy) i Z3 46. Bruno Censore(ltaly) 123 47. Cristina De Pieiro (Italy) j za 48. Gianpaolo Galli (líaly) 123 49. Federica Mogherini (líaly) 123 50. DomenÍcoScilípoí¡(lialy)i23 51. Ivans Klementjevs (Latvia) 52. JanisReirs, (Latvia) 123 53. Romualds Razuks (Latvia) 123 54. Petras Ausírevicius (Lithuania) 55. José Rosas Aispuro Torres (México) 56. Marco Antonio Biásquez (México) 12a 57. Juan Bueno Torio (México) 58. Eloy Cantú (México) 59. José Francisco Coronato Rodríguez (México) 60. Mario Delgado (México) 61. Rene Ricardo Fujiwara Montelongo (México) 62. Gerardo Gaudiano Rovirosa (México) 63. José Luis Márquez Martínez (México) 64. Laura Angélica Rojas (México) 65. Ruth Zavaleta Salgado (México) 66. 0yvínd Haileraker (Norway)i 67. MarianneMarthinsen (Norway)i23 68. Irene Johansen (Norway) 123 69. Hans Oiaf Syversen (Norway): 70. Cornelís de Jong (European Parüament, Netherlands)23 71. Joao Figueiredo Antunes (Portugal) 12 72. Pedro Jesús Marques (Portugal) 12 73. Fernando Virgilio Macedo (Portugal) ]23 74. Joaquim Ponie (Portugal) 123 75. Ñuño Sa'(Poríugal) 123 76. Ion Mocioalca (Romanía) 12 77. Petre Román (Romanía) 12 78. IgorRudensky (Russia)i23 79. Natalia Burykina (Russia) 123 80. AIojz Kovsca (Slovenia) 123 81. Melita Zupevc (Slovenia) 1 o 82. Emilio Álvarez (Spaín) 83. José María Beneyío Pérez (Spain) 84. Caries Campuzano (Spain) 23 85. Gabriel Elorriaga Pisarík (Spain) 86. María Concepción Gutiérrez del Castillo (Spain) 87. María Teresa de Lara Garbo (Spain) 88. Diego López Garrido (Spain) 123 89. Alejandro Muñoz-Alonso (Spain} ]23 90. Inmaculada Rodríguez-Pinero Fernández (Spain) 91. Inmaculada Riera i Rene (Spain) 92. Beatriz Rodríguez Salmones (Spain) 12 3 93. Ovidio Sánchez (Spain) ¡23 94. Anette Ákesson (Sweden) 1 i 95. Gustav Blix (Sweden) 1 i 96. Adnan Dibrani {Sweden) j 97. Lars Bindersson (Sweden) 123 j 98. KenneíhG Forslund (Sweden) 123 ! 99. Jorgen Reliman (Sweden) 123 i lOO.Lelf Jakobsson (Sweden)i23 101.KerstÍn Lundgren (Sweden) 123 ; 102.lngemar Nüsson (Sweden) 123 j 103.Hans Rothenberg (Sweden) m : 104. Henrik von Sydow (Sweden) \i Riza Alaboyun (Turkey) 123 i

lOG.Muzzafer Bastopcu (Turkey) 123 ; 107.MetinLutf¡Baydar {Turkey} 123 . ' 108.0ktay Vural {Turkey) ! 109.FaÍkOztrak(Turkey)i23 ' HO.Peter Bottomley (United Kingdom) 12 . ; 111.HarriettBaidwin {United Kingdom)i23 112.Míchae! Gapes (United Kingdom)i23 HS.Margareí Hodge (United Kingdom)23 \y Staffers/Organisations

1. Saren Akseli, Secretary oí Turkish Delegaíion to the NATO Parliamentary Assembly, Grand National Assembly, Turkey • ¡ 2. Sinclair Besombes, Adminístrate^ Sénat, France 3 i 3. Liz Bradshaw, Sénior Parliamentary Researcher, Office oí the Rt Hon Margaret Hodge M.P., House of Cornmons, UK23 ' i 4. Ana Ivas Brezigar, Head of Legal and Analytical Service, Slovenian Parliament 123 5. Roberto Chaparro, Director for Foreign Affairs, Gilberto Bosques tntenaíional Affairs Institute, Mexican Senate 12 6. Elisavet Dermentzopoulou, Advisorto MP Dermentzopoulos, Parliament, Greece 123 7. Rainer Dornseifer, Lawyer, Adviser ío CDU/CSU Parliamentary Group, Bundestag, Germany 133 8. Valeria Galardini, Secretary of the Italian Delegaíion to the NATO Parliamentary Assembly (Italy) 123. 9. YuliaGuskova, Adviser, State Duma, Russia 123 10. Ignacio Gutiérrez Cassilias, Legal Counsellor, Chamberof Depuíies, Spain i 11. Eoin Hartnett, Committee S.ecretariat, Joint Committee on Finance, Public Expenditure and Reform.Houses of the Oireachtas, Irelandiss ! 12. Lothar Ibrügger, Advisor, SPD, Bundestag, Germany 13. Nlels Jongerius, Assistantto Cornelisde Jong.-MEP, Media & Action coordinatpr, European Par!iarnent23 14. Valery Korchagin, Expert, Ministry of Foreign Affairs, Russiai23 j 15. Arnís Krusíiris, Consulíant of the Budget and Finance (Taxation) Committee; Latviai ^ 3 16. Carollne Le Moign, Assistant, Assemblée Nationale, France \ \. Daniel Lucíon, Advisor (OECD issues), House of Representativos, Belgium •

18. Benhabri Mehdi, Admmistrator, Finance Commitíee, Senate, France, 122 I 19. Madeleine Orvelius, Committee Offícer, Commitíee on Finance, Rlksdag, Sweden 123 20. Aiste Ramanauskaite, Secretary, Committee on Social Affairs, Health and' Sustainable Development of the Parliamentary Assembly of the Councíl ofEuropeí ; • 21. Jean-Marc Virieux, Conseiller, Commission des affaires étrangéres, de la défense eí des forces armées, Sénat, France 1 i 22. Sophie Waldteufel, Parliameníary Assisíant to Deputy Pierre-Alain Muet, France 123

Legend: Red - Members of the NATO Parüamentay Assesnbiy; 1- attending 5 Feb; 2- attending 6Feb; 3-attending Tax Country Delegations to the OECD 1. T¡mur Eyvazov, Minister-Counsellor on OECD matters, Russian Embassy 2. Natalia Mozdakova, 1st Secretary, Russian Embassy

Interpreters

1. David Boveington-Fauran 2. Ekaterina Dmitrieva 3. Lauren Horsfield 4. Nydia Russe!

NATO Parlíameníary Assembly Secretariat

1. Paul Cook, Assisíant Secretary General, Director, Econornics and Securiíy Commiítee & The Mediíerranean and Middle Easí Specia! Group, NATO Pariiamentary Assembly 133 2. Síeffen Sachs, Director, Política! Commiítee, NATO Pariiamentary Assembly ]Z3 3. Anne-Laure Bleuse, Co-ordinaíor, Mediterranean and Middle East Special Group, Economics and Security Committee, Research Assistant Prograrnme 123

OECD

1. Ángel Gurría, Secretary-General, OECD 2. Pier Cario Padoan, Deputy Secretary-Generai and Chief Economisí, OECD 3. Erík Solheim, Chair, Development Assistance Committee, OECD 4. Simón Upíon, Director, Environmení Directorate, OECD 5. Fatih Birol, Chief Economist, International Energy Agency 6. Adrián Blundell-Wignail, Deputy Director, Special Advisor to the Secreíary General for Financial Markets, OECD 7. Andreas Schleicher, Depuíy Director and Special Advisor on Education Policy to the Secretary-General, Directorate for Education and Skills, OECD 8. Mark Pearson, Depuíy Director, Directoraíe for Employment, Labour and Social Affairs, OECD 9. Grace Pérez-Navarro, Depuíy Director, Ceñiré for Tax Policy and Administraííon, OECD 10. Dirk Pilaí, Deputy Director, Directorate for Science, Technology and Indusíry, OECD 11. Niis Axel Braathen, Principal Administrator, Envíronmental Performance and Information División, Environmení Direcíorate, OECD 12. Paul Swaim, Sénior Economist, Directoraíe for Employment, Labour and Social Affairs, OECD

13. Anthony Gooch, Director, Public Affairs and Communications Direcíorate, OECD 14. Willemien Bax, Head of Public Affairs, Public Affairs and Communications Directorate, OECD 15. Jennifer Bisping, Deputy Head of Public Affairs, Public Affairs and Communications Directorate, OECD 16. Julián Knoíí, Public Affairs Manager, Public Affairs and Communicaíions Directorate, OECD 17. Rory Clarke, Head, Corporate Editorial Unit, Public Affairs and Communications Direcíorate, OECD 18. Silvia Terrón, Civil Socíeíy and Parí ¡amentarían Team, Public Affairs and Communicaíions Directoraíe, OECD Pablo LORENZIN1 Member of Parliament Christian Democrat Party, Chile

Educational background:

University of Chile, Degree in Engineering University of Barcelona (Spain), PhD in Económica

Professional background:

1995-1998 Empresa Eléctrica de Aysén, Edelaysen, Chairman of the Board 1995-1998 Empresa Metropolitana de Obras Sanitarias, EMOS, S.A, Financial Manager 1993-1995 Senexco Constructíon Company, General Manager 1992-1993 Raycass, Chiüan subsidian/ of Sara Lee, (USA), Financial and Administrative Manager 1989-1991 Price Waterhouse (Ecuador), Associate Delégate, Auditing and Consultancy 1986-1992 Price Waterhouse (Chile), Auditing Manager 1986 Colbún S.A, Financial and Administrative Manager, Deputy General Manager 1982-1985 Chilectra, Financial and Administrative Manager 1972-1978 Peat Marwick, Barcelona (Spain), Auditing and Consultancy Manager 1979-1981 Price Waterhouse (Chile), Auditing Manager

Parliarnentary activities:

1998-2002 Served as Deputy 2002-2006 Served as Deputy 2004-2005 Chamber of Deputies, Speaker 2006-2010 Served as Deputy 2009-present Elected forthe 2010-2014 iegíslative term

Parliarnentary Comrnittees:

Statutory Committee on the Budget, Regular rnember Marcelo SCH1LLING Member of Parliament Socialíst Party, Chile Twitter: @dip_schilling

Date of Birth 18 May 1949

Representihg: Limache, Olmué, Quilpué, Villa Alemana District N° 12 V Región de Valparaíso

Parliamentary: 2006-2010 2010-2014

Política! Affiliation Partido Socialista

Parliamentary Activities On 2 August 2008, he took over as deputy for District 12, replacing the late president of the Chamber of Deputies, Juan Bustos. In December2009 he was elected forthe period 2010-2014.

Standing Committees Culture and the Arts, Family, "Interior Government", Public Safety and Drugs investigative Committees Public Safety, investigating the events of 27-F [sic] Committee to investígate the "Northern Frontier Plan" (Plan Frontera Norte)

Standing Committees Mining and Energy National Defense

Interparliamentary Groups Member, Chile-France Iníerparliamentary Group José GARCÍA RUM1NOT Senator Renovación Nacional Party, Chile Twitten @jgarciarurnínot

Born22 May, 1955. Profession

Accountant Academic background

• Accountancy, Universidad de la Frontera, Temuco, Chite. • • M.A. in Management of Social Projects, Universidad Católica de Chile. • M.A. in Public Finances, Budget and Taxes, Universidad de la Frontera, Temuco, Chile.

Poütical Career

• Mayor of three cities: Temuco; Lautaro; and Toltén. • Representativa for three legislatures (since 1990). • President of the Committee on Agriculture of the Chilean Chamberof Deputies. • Permanent member of the Committee on Public Budget of the Chilean National Congress. • Senator for two legislaturas (since 2002). • President of the Committee on Economics ofthe Chiiean Senate. • Current member ofthe Committee on Finances ofthe Chilean Senate. Andrés ZALDIVAR Senator Christían Democratic Party, Chile Twitter: @andreszaldivarl

Chüean Senator, born on March, 18, 1936

Lawyer and Economist

Belongs to the Christian Democrat Party

Former Miníster of Finance Formar Miriister of Home Affairs Former Ministerof Economics Former Governorof the Interamerican Development Bank Former President of Christian Democrat International Former President of the Chilean Christian Democrat Party Former candídate for President of the Republic of Chile

Publications:

"Exile in Madrid". CIPIE Foundation, Madrid, 1983 "The unfinished transition". Los Andes Publ. Santiago, 1995 "Democracy now and forever". Aconcagua. Publ. Santiago, 1984 SETTER POLICIES FOR BETTER UVES OECD Parliamentary Days

5-7 February 2014 OECD Conference Centre, París

WecJnesday, 5 February 2014 OECD Internationa! Parliamentary Seminar jointlywith the NATO Parliamentary Assembly artnualmeeting atthe 0£CD RoornCC12

Chair: Anthony Gooch, Director, PubÜcAffaírs and Communications Directorate, OECD

08:30 - 09:00 Arrival of paríícipanís and morning coffes

09:00-09.10 Welconie Anthony Gooch, Director, Public Affairs and Communications Directorate, OECD

09:10-10.30 A conversaron with Ángel Gurría, Secreíary-General, OECD wíth remarks by Petras Austrevícius, Chair, Economles and Securíty Committee, NATO Parüamentary Assembly

10.30-10.45 Coffeebreak

10:45-12.30 The ecdnomic, social andfinancial situation Pier Cario Padoan, Deputy Secretary-General and Chíef Economist, OECD, Adrían Blundell-Wignall, Deputy Director, -Special Advísor to the Secretan/ Genera! for Financial Markets, OECD, and Paul Swaim, Sénior Economist, Directorate for Employment, Labour and Social Affairs, OECD OECD speakers will share with MPs the OECD's laíest analysis of the economic outiook in OECD and key emerging economías, the employmení and social situation, as well as recent developments in financia) markets. They will also share the OECD's policy recorrímendations ío spur growth, boost confidence and soften íhe impact of íhe ¡obs crisis. Mr. Padoan will also presení the findings of a recent OECD paper on its forecast performance over íhe períod 2007-12, focussing on the lessons íhaí can be learned fronf'cross- country differences in growth forecasí errors and the changes to forecastíng models and procedures that have been prompted by the experience of íhe crisis,

12,30 -14.00 Lunch for Parliamentarians, co-hosíed by the OECD and the NATO Parliamentary Assembly Restauran! des Naíions

14:00-15.15 Putting a príce on C02emissions Simón Upton, Director, Environment Directorate, OECD, Nils Axel Braathen, Principal Administrator, Environmenta! Performance and Information División, Environment Directorate, OECD The threat of climate change requires decisive action across virtually all parís of our economies and societies. Alíhough the world is not currently on -írack to meet iís goal of maintaining the global temperatura ¡ncrease below 2°C, a range of policies have been ¡mplemented, with míxed success. Economic theory indicates íhaí a pnce on CÜ2 emissions from fossil fuels and other sources is needed ¡f countries are to minímise the overall cost of reducing their emissions. At presení, fossil fuels are priced and taxed ai levéis that díffer vastly across fuels, uses, and countries, índicaííng áreas of possible ímprovements. Likewise, some policy instruments carry a much higher cosí of CÜ2 reduction than others, often a sign of economic inefficiency. The Environment

5- BETTER POLIC1ES FOR SETTER LIVES

Dírectoraíe will present latest results ¡n this área as well as possible new Work on the experience wiíh carbón pricing legislation. •

15.15-16.45 World Energy Outlook • Fatih Birol, Chíef Economist, International Energy Agency A new global energy landscape is emerging, resetting long-held expecíations for our energy future. Bringing together íhe latest data and policy developrnenís, íhe World Energy Outlook 2013 presents up to date, projecíions of energy trends through to 2035, fue! by fuel, sector by sector, región by región and scenarjo by scenario. Oil is analysed in-depth: resources, production, demand, refining and International írade. Energy efficiency is treaíed in much the same way as conventíona! fuels: Its prospects and contributíon are presented ¡n a dedícated chapíer. The report examines the outlook for BrazÜ's energy sector and provides updates on three key áreas of critical importance to energy and climate trends: (i) achíeving universal energy access; (¡i) developments in subsidies to fossil fuels and renewables; and (iii) the irnpact of energy use on climate change. Ojl supply, demand and trade: a fresh look at the economics and decline rates of different types of oil producíion around the worid, íhe prospects for light tight oil inside and ouíside North America, aiong with new analysis of oil products and the refiníng sector.

16.45 -18.00 The OECD Sküls Outlook ancí PISA Andreas Schfeicher, Deputy Director and Specía! Advisor on Educatlon Policy to the Secretary- General, Directorate for Educatión and Skllls, OECD Skills have become the global currency of 21 ^ century economies. Wiíhout sufficient ínvesíment ¡n skills peopie languish on the margins of society, technological progress does not transíate inío productívity growth, and countries can no longer compete in an increasingly knowledge-based global economy. And, ai a time when growing economic and social ¡nequaüties are a major challenge, effective skills policies must be part of any response to address this challenge. But this 'currency' deprecíales as skill requirements of labour markets evolve and individuáis lose the skills they do not use. For skills to reíain íheir valué, they rnust be continuously maintained and upgraded throughout Ufe so íhat peopie can collaboraíe, compete and connect ¡n ways tnaí drive economies forward. With its skill assessment programóles PISA and RIAAC, íhe OECD has developed global metrics noí only to assess the quality and quantity of the skills avaiiable ¡n the populaíion, buí also to help policy-makers determine and anticípate íhe skills required ¡n the labour markeí; develop and deploy those skills in the most effective and equitable ways; and esíablish sustainable approaches to who should pay for whaí, when and how.

18:00-19:30 Cocktail Recepíion wiíh'OECD Ambassadors Salle Roger Ockrení, Cháíeau de la Muette

Thursday, 6February2014 OECD International Parliamentary Seminar jointly with the NA TO Parliamentary Assembty annual meeting at the OECD

Room CC9

08:30 - 09:00 Arrival of participants and moming coffee

09:00 -10.15 Development co-operation for post-2015 Erík Solheím, Chair, Development Assístance Committee, OECD The world is changing and internaíional development efforts need to adapt to ensure íheír future relevance. Five key challenges include 1) A mulíi-polar world: AII major issues today and in the fuíure require broad agreement of a growing number of nations. 2) The threat ío the global environmení and cümate is more real than ever. The poor are noí íhe cause, but often the mast exposed to this threat. Forthe poor, who are most exposed, dealmg with climate chsnge cannot BETTER PQL1CIESFOR BETTER UVES

be separated from their development aspiratíons. The divide between the global environment, climate change and the development agendas must be bridged. 3) While the world as a whole is getting richer and the global middle class larger, more than one billíon people are still living in absolute poverty - many of them in fragüe states. A specíal focus on these countries is essential. 4) Capital flows to developing countries - prívate ínvestment, trade, remittances, but also illíclt ílows - now vastly outstrip ODA. At the same time, ODA remains by far the most important, and otten vírtually the only, external resources for the poorest countries. There is a need to better align these flows to achieve the greatest development progress. 5) There ¡s a shift from mtentions, or money spent, to results - real changes on the ground - in the global development community, We must build systems that are much better at measunng and evaluating results, because this is what counts for the poor people ot the world.

10:15-11,30 Addressíng dementia: towards a newinnovation model Mark Pearson, Deputy Director, Directorate for Employment, Labour and Social Affaírs, OECD, Dirk Pilat, Deputy Director, Dírectorate for Science, Technology and industry, OECD Dementia is a devastatíng condition for the people affected, their family and friends, and for health systems. About 5.5% of people aged over 60 had dementia across all OECD countries in 2009, but prevalence rates soar to nearly one every two people aged 90 years and older. This ¡s not a challenge for OECD countries alone. An estimated 58% ot the 36 millíon people living wíth dementia in 2010 worldwíde are from middle and lower-income countries. There is no known cure for dementia, ñor effective therapíes to slow down its progression. Efforts to develop reliable diagnosíic techniques and effective treatments have exposed weaknesses in the way that health systems, researchers and companies interact. There ¡s a need to change the way public and prívate stakeholders collaborate at national and global levéis to address this issue. Furthermore, health and long-term care systems struggle to offer the coordinated response - in terms of information systems, quality protocols and workers' skills - needed to delíver hígh-qualíty sen/ices to this vulnerable population group. Addressing the challenges posed by dementia has now become a major endeavour at International leve!. A landmark G8 meeting on dementia, held in London in December 2013 concluded wíth a cali for countries to accelerate research and ¡ts transformation ¡n innovative care and health -services.-strengthening big and linked data-systems for improving the prevention and treatrnent,of^dementia,.. and reformíng health and social care systems to irnprove quality of life for people with dementia.

11:30 -14:30 First meeting of the OECD Parliamentary Group on Tax Matíers Grace Pérez-Navarro, Deputy Director, Centre for Tax Polícy and Adminístrathn, OECD D/scussanfs; Comeíis de Jong, Member ofthe European Parliament, Neíheríands Margaret Hodge, Member of Parliament, UK In July 2013 the OECD unveiled the Action Plan on Base Erosión and Profit Shífting (BEPS). which aíms to develop a new set of standards to prevent double non-taxation and ensure that profits are taxed where they are actually generated. During the latest OECD International Parliamentary Seminar in Ocíober 2013, participating parliamentarians proposed the creation of an OECD Parliamentary Group to support íhe work of the OECD on this inltiatíve and other tax matters such as Automatic Exchange of Information, etc. This meeting wíll provide an update on the OECD work on tax matters and serve as an opportunity to define the shape and íhe activity of the group going forward. Lunch boxes will be se/ved

14:30 -18:00 Bilateral meetings with OECD experts and OECD member couníry delegatíons (upon request)

Friday, 7 February 2014

All day Bilateral meetings with OECD experts and OECD member country delegations (upon request) BETTER POLIC1ES FOR SETTER UVES

be separated from their development aspiratíons. The divide between the global environment, climate change and the development agendas rnust be bridged. 3) While the world as a whole ¡s getting richer and the global middle cláss larger, more than one billion people are still living in absolute poverty - many of them in fragüe states. A special focus on these countríes ¡s essential. 4) Capital flows to developíng countries - prívate ínvestment, trade, remittances, but also illicit flows - now vasíly outstrip ODA. Ai the same time, ODA remains by far the most important, and often virtually the oniy, extemal resources for the poorest countries. There ¡s a need to better aügn these flows to achieve the greatest development progress. 5) There is a shift from intentions, or rnoney spent, to results - real changes on the ground - in the global development community. We must build systems that are much better at measuring and evaluating results, because this is what counts for the poor people of the world.

10:15-11.30 Addressing dementia: towards a newinnovation model Mark Pearson, Deputy Director, Dírectorate for Emptoyment, Labour and Soda! Affairs, OECD, Dirk Pilat, Deputy Director, Dírectorate for Science, Technology and Industry, OECD Dementia is a devastating condition for the people affected, theír family and friends, and for health systems. About 5.5% of people aged over 60 had dementia across all OECD countries ín 2009, but prevalence rates soar to nearly one every two people aged 90 years and older. This ¡s not a challenge for OECD countries alone. An estimated 58% of the 36 mülion people living with dementia in 2010 worldwíde are from middle and lower-income couníries. There is no known cure for dementia, ñor effective therapies to slow down its progression. Efforts to develop reliable diagnostlc techníques and effective treatments have exposed weaknesses in the way íhat health systems, researchers and companies ¡nteract. There ¡s a need ío change the way public and prívate stakeholders collaborate at national and global levéis to address this ¡ssue. Furthermore, health and long-term care systems struggle to offer the coordinated responso - in terms of Information systems, quality protocols and workers' skills - needed to delíver high-quaüty services to this vulnerable population group. Addressing the challenges posed by dementia has now become a major endeavour at intematíonal leve!. A landmark G8 meeting on dementia, held in London Ín December 2013 concluded with a cali for countries to accelerate research and its transformation Ín innovatlve care and health . . - - - , ..services.-strengthening big and linked daía_systems for ¡mproving.the prevention and treatment,oLdementÍa,_ and reforming health and social care systems to ¡mprove quality of life for people with dementia,

11:30 -14:30 First meeting of the OECD Parliamentary Group on Tax Matters Grace Pérez-Navarro, Deputy Director, Centre for Tax Policy and Adminístration, OECD Díscussants;. Cornelis rfe Jong, Memberofthe European ParÜament, Netherlands Margaret Hodge, Member of ParÜament, UK In July 2013 the OECD unveíled the Action Plan on Base Erosión and Profit Shifting (BEPS), which aims to develop a new set of standards to prevent double non-taxation and ensure that profits are taxed wtiere they are actually generated. During the latest OECD International Parliamentary Seminar ¡n October 2013, participating parliamentarians proposed the creatíon of an OECD Parüamentary Group to support the work of the OECD on this initiative and other tax matters such as Automatic Exchange of Information, etc. This meeting will provide an update on the OECD work on tax matters and serve as an opportunity to define the shape andtheactívityofthe group goíng forward. Lunch boxes will be served

14:30 -18:00 Bilateral meetings with OECD experts and OECD member countty delegations (upon requesí)

Fríday, 7 February 2014

Ali day Bilateral meetings wiíh OECD experts and OECD member couníry delegations (upon request) (As preparad for delivery) Good morning Ladies and Gentlemen,

Let me welcome you al! to the OECD. l'm glad to see so many of you here today. We have a record turnout for our 2nd OECD Parliamentary Days, which is a sign that the OECD Parliamentary Network is going in the right directa! •

This year we decided to combine our "seminar with the annual visit of the NATO Parliamentary Assembly, with whom we have a longstanding relationship, and 1 want to especially welcome you back ío the OECD.

I want to use mosí of my time this morning ío exchange views and ideas with you, so i will limit my remarks to a few key points.

Six year into the crisis, where do we stand?

There are several encouraging signs that the slow recovery we have been experiencing is finaliy gaining some steam. Recent leading indicators have confirmed the improved outlook for the US economy. We expect U.S. growth to accelerate towards 3% in 2014, after almost 2% in 2013. Activity is also slowiy picking up in Europe and Japan, while China and other emerging market economies are set to maintain relatively high growth rates.

Despite these generally positiva news, the global economy remains ¡n low gear compared to the pre-crisis period and certainly ¡ower than would be expected at this stage of the economic cycie.

Furthermore, the other legacies of the crisis - high unemployment, growing inequality and a decline in public trust - remain firmly anchored in our countries.

OECD-wide unemployment should decrease süghtly this year, though there are still over 13 million more peopie unemployed than in 2008. The OECD-wide unemployment raíe is only expected to fall below 8% around mid-2014, while in Europe ¡t will remain above 12%. Young peopie and the low-skiiled have been hit the hardest. Youth 1 therefore take the opportuniíy of being here, ai this plaíform for the ¡mprovement of the

; worid, Chatham House, to invite the leaders of the 41 member countries of the OECD Working Group on Bribery to lead-by example and to commií to ful! implementation and enforcement of the Convention. I also take íhis chance to announce that in 2014, on the

occasion of íhe 15íh anniversary of the Convention, i will seek the endorsement of our Ministers of a high ievei política! statemení to strengthen our anti-corruption efforts. '

Ladies and Geníiemen:

Our decisions, our agreements, our treaties and conveníions, but most of all, our actions, can reduce the living space for bribery and dishonesty. We can eradicate corrupta. But for thaí we need a collecíive response, a multilateral effort, and a muitidisciplinary programme. The OECD is working on these lines, but we need your heip to succeed. Remember íhe words of Albert Einstein: 'The worid will not be destroyed by íhose who- do evil, buí by those who waích them withouí doing anyíhing".

Thank.you for your attention.

1 OECD, "Government at a Glance 2013", p.9 2 According to the World Bank's estimations. See CleanGovBiz Brochure. 3 The OECD Anti-Bribery Convention enterad ¡nto forcé on 15 February 1999. & According to data provided by LEG and DAF. 5 See OECD Working Group on Bribery, 2012 enforcement data: ww^oeccLorR/daf/antí- bríberv/Work¡ngGroupQnBrjberv_j012EnforcementData.pdf. 6 Adopted by the African Union, the Council of Europe, the League of Arab States, the Organisation of American States, and the United Nations. 7 Fitch. See: http://es.reuters.com/article/idUKTRE65G4MX201Q0601. unemployment remains at dramatic levéis ¡n many couníries, with rates exceeding 55 per cent in Greece and Spain and over 35 per cent in Italy and Portugal.

The Jobs crisis goes hand in hand wiíh risíng inequality. Today, in OECD countries, the average income of the richest 10% of the populaíion ¡s approximately nine times that of the poorest, up from seven to one 25 years ago. Even in traditionally egaliíarian countries - such as Germany, Denmark and Sweden - the income gap between rich and poor is widening - from 5 ío 1 in íhe 1980s to about 6 or 7 to 1 today, while in Chile and México it stands at around 27 to 1.

Public trust in institutions has also taken a beating as a result of the crisis. As shown ¡n our recent publicationj How's Life?, today only 40% of citizens in the OECD trust their naíional governments - íhe lowest ¡evel since 2006. And in countries rnosí affecíed by the crisis, oniy beíween one and three citizens out of ten trust íheir governments, a ratio thaí has more than halved since the síart of the crisis. And it is not just governments that have been hit. Banks, companies, parliamenís, international organisations have also seen a drastic drop in trust and even people's írust in each otherhas suffered!

The pending reform agenda

The globa! outlook is also overshadowed by various uncertaintíes that could set back the still fragüe recoven/. High governmení debt burdens, an unfiníshed agenda to reform íhe banking sector in the euro área and íhe expected. normaüsation of global monetary condiíions pose challenges for íhe recovery. PoHcymakers are ío some extení ío íhe very source of this uncertainty. We need consistent, effecíive and durable policy action to get the cylinders of the growth engine up and running again.

To íackle íhese challenges, we need ío work on several fronts símulíaneously. And we need ío do so considering the interlínkages between different policies and their impact on íhe various dimensíons of well-being.

Leí me focus on íwo key áreas íhe OECD ¡s working on: inclusive and green growth and taxation. 1. Inclusive and green growth:

The OECD's visión for inclusive growth combines strong economic growth with improvements in living standards and outcomes that matterfor people's quaüty of ufe - good health, Jobs and skills, a clean environment, and community support.

Inclusive growth means fostering the best use of all resources for growth - natural and physical capital, all countries and regions, and ail ciíizens: sénior citizens and young peopie, men and women.

To make headway on all these fronts, we need comprehensive structural reforms to help maximise opportunity, education and íraíning, fair taxation and incentives, and programmes to empower all groups of society to fulfil their potential. We need to continué efforts to promote competition, fosíer innovation, and allow the knowledge- based economy to permeate through the different sectors of the economy. Long-term challenges such as ageing should also be turned into opportunities - benefiting from the wisdom and experience of the elderly -, whjle addressing the growing costs of health care and diseases, such as dementia.

The OECD is also working with governments to improve the effectiveness of active labour market policies and activation strategies to reduce the curse of unemployment. Our Action Plan for Youth provides a comprehensive range of measures to address;- youth unemployment, especially long-term unemployment. Our evidence-based PIS5 and PIAAC initiatives together with our Skills Strategy are also contributing to improving education and training systems worldwide. Countries that invest more in knowledge and relevant skills will be more internationally competitive, more innovative, and créate more quality employment.

If done righí, these reforms have the power to both boost economic growth and to address significant social challenges that are the result of years of unequal access and unequal distribution of growth dividends. We a!so need to go further in making growth greener and tackling climate change. We are on a colusión course with nature. As we approach the Conference of the Parties in late 2015 in París (via Warsaw and Lima), we need to take further action now to put us on. a pathway to achieve zero net greenhouse emissions globally in the second half of this century. As well as protecting íhe well-being of future generations, the investment needed ío reduce our reliance on fossil fuel can give a huge boosí to growth.

2 Taxation:

To achieve all these goals, governmenís need ío maintain their finances in order. In addiíion ío íhe consolidation efforts under way in many countries, at íhe OECD we have been working for some time ío puí an end ío íax evasión by wealíhy individuáis and reiri in tax avoidance by muitinational companies. Governmenís cannoí function effectively ií their revenues are syphoned off by unscrupulous individuáis orcorporations.

The OECD has proposed a roadmap to help governmenís address íax avoidance anci ..aggressive tax planning by corporations, íhe Acíion Plan .on.Base Erosión and Profit Shifting. Countries have already staríed working together along íhe lines of íhis action plan supported and mandated by íhe G8 and the G20 and we highly appreciate the support of national and supranational parliaments on íhis projecí.

Anoíher challenge is the fight againsí offshore tax evasión. Wiíh the support oí national governmenís as well as that of the G20, we are now progressing towards a new, more ambiíious, single global síandard for automatic exchange of tax Information. Following our recent Global Forum ¡n Indonesia, the challenge is now to put our commitments into acíion and implemení a íruly global síandard for an ¡ncreasingly borderless world, which we hope ío achieve by July this year. Rebuilding trust

Al! these initiatives wil! help public instiíuíions regain íhe trust of citizens. But more needs to be done in íhis área. Elected poliíicians musí be accountable, and not just ai the ballet box. Corporations need ío betíer manage environmeníal and social risks. And financial markets need ío be rendered more síab!e, ensuring íhat íhey meet their main function of financing productiva economic acíivity and overseeing company boardrooms.

Ai íhe OECD, we are convinced íhaí betíer data, better analysis and ultimately betíer policies are criticai to addressing íhis írust déficit. But ío ensure that better poiicies lead to betíer lives, we also need to íake a cióse look ai the poücy making process ítself. We need open, transparent and accouníable governmenís. Ciíízens need ío be able to access information and actively particípate. And we need to guard against undue influence of vesíed interesís often manifested through lobbying and political finance. These are core elemenís íhat wil! be addressed by íhe OECD's írust strategy.

New Approaches are needed

What we need, ladies and gentlemen, is ío revísií modeis and íheoríes ío quesíion conventionai wísdoms and "esíabiished truíhs." Thafs why we are working on a project called New Approaches to Economic Challenges. lí is an organisaíion-wide reflecíion on the rooís and íessons from the crisis with the aim to catalyse a process of continuous improvement of the OECD analytical framework and policy advice. We are hoping to define more effective policy opíions for governments ío achieve íhe ulíimaíe goal to

improve íhe well-beíng of íheir ciíizens.

You will now hear in more detail abouí many of íhe ¡ssues i íouched on in my remarks. I very much look forward ío your commenís and quesíions and to an interesting and

fruitful discussíon.

Thankyou very much! International parliamentary seminar. The global outlook

5 February, 2014

Pier Cario Padoan Deputy Secretary-General and Chief Economist, OECD

BET7EH POLICIES FOR BETTER UVES

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Projected change In reai GDP ¡n 2014-15 Annual average, per cent

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®»OECD «mB «oucas K» Btin" u«S PARLIAMENTARY SEMINAR: FEBRUARY2014

Adrián Blundell-Wignall Special Advisor on Financial Markets to the QECD Secretary General.

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UO U3 en o íN 00 LO r^ en o tN 00 IJD r^ en o vH ro « co oo 00 oo en en en en en en en o O O O 0 0 O rH í***n írH I I 1 i i t i i i i i i ! 1 ¡ i t i i 1 u XJ ^ U -i c c ' ¿' 12 « ^ C c > U n3 ^ o OJ 0) ra u ¿5 3 ro rs o 0. oj QJ _r CU —i LL ^ ro

% poínt 15 MCI USA Inverted led 18 Mths v IP 6 ; 10 4 ;

5 2 |

O O -2 "

•10 -4

•15 IP USA(LHS) -6 •20 -8 MCI USA inverted led 18 •25 months(RHS) J -10 Components of US MCI: Bonds & Exchange rate Headwinds (Rise=Tightening? Fall=Easing)

2 -

2 3m rate 12m Change

3 lOy Bond 12m Change Exch Rate 12m % times weight

-— Equity 12m % times weight -5

i i j i i 1 I . I I 1 I I 1 C > ir Q. u C 03 3 O Q- CU 03 O bnr c?p• -Q°J -» 2 < (^ O 2 < oo LJL Europe Inverted Monetary Conditions Index led 12m (short & long rates, exch. rate, equity prices), vs IP

% point 5 Cl EU Inverted & Led 15 Months vs IP

PEU MCIEU(RHS)

~~12m Changa~~

~~lOy Bond 12m Change~~

~~Exch Rate 12m % times weight~~

~~- Equity 12 % times weight~~

~~i i I ! i i i i I C Q. -O U >, 4-J c c Q, ro o Q. 0> OJ 03 03 U o 9. cu < Q O < u. Inverted Monetary Conditions Index Japan (short & long rates, exch. rate, equity prices, oil) vs IP~~

~~APAN Inverted & Led 12 Months vs IP~~

~~IPJAP MCIJAPÍF~~

~~<\\ <\s~~

~~rate 12m Change~~

~~lOyBond 12m Change Exch Rate 12m % times weight~~

~~Equit\&12m % times weight Distance to Default (3 Std. Dev.= Safe) Progress Since the Crisis~~

~~DTD At September 3Qth, 2013 A DTD lYear Before A DTD End 2008 US Banks European Banks~~

~~I A~~

á A* A f AA Á A r r T T 1 T~ ~ - - - rTrT "TT Trn^T FT^T \TA1T. 1 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 Core Tíer 1 Capital Shortfall Compared to the OECD Rule of 5% of Total Assets (and 3% Case)

~~12 %GDP~~

~~10 9.5 Core Tier I/Tangible Cap., Shortfali 5% TA~~

~~CoreTier I/Tangible Cap., Shortfali 3%TA~~

~~4 US & Europe T1 Capital Ratio: IFRS, GAAP & Basel Definitions~~

~~8,0~~

~~7.0~~

~~6,0~~

~~5,0~~

~~4,0~~

~~3,0 US TI Capital Ratio (GAAP) 2,0 US TI Capital Ratio (IFRS) 1.0 5% Regulatory Leverage Ratio Tier 1 Europe IFRS 0.0 ID UD 00 en O~~

~~C1P-NDF ARGENTINA~~

~~y3Vny>Tff>r^oD[ii~~

~~OÉCD Parlíamentary Days ; 5 February 2014~~

~~LATEST LABOUR MARKET DEVELOPMENTS AND SÓME SOCIAL POLICY CHALLENGES~~

~~Paul Swaim ; Sénior Económist !,'„•_';...-..-_ Empíoyméñtrtábóür and Social Áffaírs OECD~~

~~EEJTIEH pcuccs foa Bitien uvis~~

~~h K ^'-} The labour market impact of the crisis and recovery has been large, but highiy uneven across countries Unemployment rate, percentage of the labour forcé~~

~~Souice: OECD Stioií-Teim LsbourMaitetStaSsKes DaüD&g (Cut-oH dale: 4 FetMuaty 2014) and OECD Econotnic Outíook Datábase. 05/02/2014~~

~~Long-term unemployment has risen in most countries, but sharp hikes are confined to only a fewa'd Perceniaae of unemp!ovment.Q4 2007 and OS 2013~~

~~80 1 .0042007 \3 -' ; - : . . 70 - -- '.''-' '. 9 ?~~

60 '"?"•? T SO •o o.-1?-.? ... . F] • , n\ c T T m n \rí P (9l ? ? n fl ¿Q ...... : : _._._. n a Y T Ti ! i o p 9 9 fpj 30 n • • . ' i y o ! | 3 o . 9 9 :( ] ' ! ! ¡ 20 - c5 9 ° 1 ' i ' ' . . : f 3 : i "' ' , .! 10 •¡ - 11 0 JlrkijII 1in) L

Wofe: Countiies areshownbyasceruliiigotderoílrie inddenceollongtomune/rploymentln 032013. a) Dala are noi seasonall/adjusied bul smoo^edusinglhrae-quarterinovingaverages.CECDis llie weighled average oí 32 OECD couniíieseiclufling Chite and Korea, b) lates! data for ¡srael cotrespords to 2012. Source: OECD calcúlalansbasedonquarteilyjialion a! Labour Perca Sucveys (Cut-oH date: 15 Jan uary 2014).

~~^ Youth unemployment has reached very high levéis in // some OECD countries % Percentage ofyouth (aged 15-24) labour forcé, O4 2007a- O4 2013b 70 PQJ2007 -OQ12013 60 0 0 SO~~

~~p 4Q P 9~~

~~^ P 9 20 " Í?VT?fl!inifli?????TTÍ] flíKlinÍ í 10~~

~~0 * A~~

Wve: Coimlrias shovm ¡n ascending order o! Míe yoaift unemployment rales in 04 20J3. ^^^H a) 02 2007 fot Sv-fcMílanl ^^BH b Q3 2013 lor Chis, Esionra.Greeca.Hungary, Israel, Korea.Menco, New Zeaiand,Nomay,SHit;6r!and,TuriiBy and iha Uníed Kingdom. ^IIEH a ufcc: D£CO Stoir-Térrn [atoof /.fartol Saiíitia Da/abasa (Ctn-oH dala'. 4 February 2014} . jjggjg^ 05/02/2014

~~Very large increases in the number of workless households are a major test for social policios Shares ofadulísUving in workless households, in percentages~~

~~02007 - O!012{/) - - '. • T~~

.- : l * '• Í) -tl - í ; . ' f * '- : . j •' " ' 1 ' • '; j F s ¿ ' - ' i, : ;• J í ¡ ', "Í í ' ' ^ :-• • *• "', ¡. ' ! ' , , :_,_'' ^. £_,_ = :• , • • ', ' , • :, ', í'

WDíe.'Househotós ara defined as^orktess' i! al! Jiousetioldmentiers are eñher unefrployed or labogr-ma'kelinaclive. 'ArJuSs' retostó Ine poputation aged 1S-E4. 2013 totead of 201£for IheUniad Siates, Sou/ce.'OECD esL'matgs based on me Europea" Union Ubour forcé Survey andíne Untad Stales Curren! Populalion Survey.

~~Social spendíng, especially for working-age people, is most-frequentiy cited ítem in consolidation plans~~

~~Major programme tneasures in fiscal consolídation plans, Government spending by function, by domaín, based on 2011 and 201S surveys, OECD 2011, OECDaverage~~

Mfe-Aquasiioinaire was submitied tu countiÍM in DecemBef 2011 lo updataTtie OECD 2010-11 repon on d'scal consoSdation stratsgies. Based on coutiuy responses anfl publicV avaüatía souicos, ¡nfoirraBon was coUeaed for 31 countries. E*p'anailoii: 70% oí ccuntries plan lo cut welfaia spending in 2012. V/elfara indultes working-age social transfeis. such as unemplcymant benelits, social ass'istancs. OisaBiHy benerds, cfíild beneíiis, etc. Pensions comprise old-age penílons. Souiee: OECO National Accounti, DECD (2012), Hasloring Pubfe Rnances, 2Q12 Updale", and DECD (20HJ, 'Hesioring Pubfe Francas: Fiscal

~~ConsoGdaílon fnOECP Countiles1. ^ 05/02/2014~~

~~Pensions at a Glance 2013~~

The disíributional impací oí pensión reforms - Future pensión entitlements wil! fall buí low earners have been generally protecíed - To maintain íhe same standard of living people will need to work longer - Higher pensión ages: 67 ¡s the new 65 What abouí future reíiremeni-income adequacy? - Which role can housing, financia! wealth and public services play? Pensión indicators cover OECD and G20 couníries wiíh 2012 rules/parameíers

~~Contact: Stefano.Scarpetta®oecd.org OECD Directorate for Employment, Labour and Social Affaire, vía www.oecd.org/els~~

OECD Employment Outlook, vía www.Qecd.org/employment/outlQok OECD Socfety at a Glance, vía: www.oecd.orq/social/societvataqlance.htm OECD Pensión at a Glance, vía: www.oecd.orq/pen sjpns/penslo nsatagjance.htm OECD Employment datábase, v!avA-Jw.oecd.orq/emplQvment/database 05/02/2014

~~K N~~

~~ron BEmn uves~~

~~K K Revenues from environmentally related taxes In per cent of GDP, Se!ected countries, 2012~~

~~lo 05/02/2014~~

~~Taxing Energy Use~~

® OECD published the book Taxing Energy Use: A Graphical Analysis in 2013. © First systemaíic comparison of the taxation of a¡I energy use across & wíihin OECD countries. © Considers taxes on fuels as effective taxes on energy & on carbón emissions, highlighíing the price signáis sent by taxes to differeni fuels & fue! uses. © Provides a graphical & statistical profile of íhe strucíure of energy use & taxation in each of íhe OECD countries. ® Uses the underlyíng data to develop cross-OECD comparisons of effective íax rafes on dífferent users and sources. of energy.

~~Taxation of energy ¡n the OECD área: A carbón contení basis~~

~~90 "80~~

~~30 e ^20 10 o 2 50O OOO 5 OCO COO 1 2 5OO OOO Tax based — energy use — expressed !n thousands of tonnes of CO.,~~

~~Sowce: OECD (2013), Taxing Emirgy Use: A Graphical Analysis, 05/02/2014~~

~~Energy tax rates, EUR per tome co;~~

~~Effective tax rate (EUR pertonne COJ 500~~

~~450~~

~~400 -- swe~~

~~350~~

~~300~~

~~250 i 200 44 1 i; 150 r AUS 100 i (* 4 \ 50 , a** , O — tt B- 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.6 0.9~~

~~Source: OECD (2Q13),Taxi»g Energy Use: A Grapliica! Analysís~~

~~Support to fossil fuels in OECD countnes by year~~

~~By type of fuel By measure USD bilHon (current) USD bilTion Ccurrent) 90 90 8o 8o 70 70 6o 6o -_ 50 50 - Petroleum, 71% (2011) 40 Consumer support, 80% (2 30~~

~~20 Goal, 12% (2011) ! ^ _^«MHH 10 Natural gas, 18 56 (2011) - , , •SeBsrqfstírvicps süppprl^- 2005 2006 2007 2008 2OO9 2010 2O11 2OO5 2OO6 2OO7 2OO8 2OD9 2O1Q 2O11~~

Note: Based oit arithiueticsuní of the indhidual support mcasures identifieil fot1 ail 3-4 OüCD member countnes, U includestlio \raloeoftaxreliefnieasurediindereaclijuruidictioirsbeiichmaikt rea tni en t.llie eslimatcs do not account fnr interactions that may wccur if múltiple mensures were considercd simultaneíHisly. Source: OKCD (2013), Inwntonj ofEstímaied Budaetaru Support and Tax í-xpendilin-esjor Fossil Fuels 201,3, OECD Pulllistling. 05/02/2014

~~Background and introduction~~

© OECD recently published the book Effective Carbón Pnces. ® The book looks at íhe amount of GHG abaíement different polícy ¡nsíruments contribute to; the cosís to society of achieving this abatement; and, henee, the costs to society per tonne of CO2eq abaíed. © Covers electricity generation, road transport, pulp & paper, cement, as wel! as households1 domesíic energy use in 15 Countries. www, o ecd .o rg/en v/tool s- © Keep in mind: A high effective carbón price can eva! natío n/carbon-p rices.htm síem f rom an arnbitious policy - or f rom an ¡nefficient poücy. 05/02/2014

~~Electricity generation~~

The highest costs per tonne of CO2 abated are associated with various capital subsidies (for renewables, energy-efficient appliances, etc.) and feed-in tariff system - boíh in terms of the averages calcuiated and the máximum valúes observed. The lowest costs per tonne were found for trading systems. The costs were particulariy low when the trading sysíems addressed the environmenta! externaiity as directly as possible • like with a trading system for GHG ernission allowances (rather than- indirectly, such as e.g. "tradabie renewables certiíicates"). Thls confirrns "texíbook suggestions" that trading systems (and broad-based carbón íaxes) are íhe most economicaliy efficiení policy tools to mitígate cümate change.

~~W\e effective carbón prices in the electricity ff sector, by instrument category, EUR2010 per tonne co2~~

~~tu M¡n~~

~~re Max O1 700 - A Simple average í¿~~

~~§ 500 -~~

~~01 ce~~

~~' I |1 | i 0~~

~~•¿? -*? *^~~

~~i? **- ' ^t 05/02/2014~~

~~Effective carbón prices in the different sectors covered, by country, EUR20ÍO pertonne co2~~

~~a Electrlcíty generatron OrRoad transpon: UPulp & paper SSCement El Households~~

~~To surn up~~

There are clear differences in effective carbón prices: © wíthin a given sector, across the couníries covered; © across the differení secíors, within each country; © across the different instrument types, across a!I the countries covered. The study demónstrales clearly that taxes and emissjon trading systems are much more cost-effeclive than other policy instruments that countries appiy. Many of the other instruments countries apply to Ümit GHG emissions (feed-in taríffs and other subsidies to renewables, various subsidies for low-emission product alternatives, etc.) are very costíy per íonne of CO2eq abaíed. It will be very difficult to reach more ambitious, and urgentiy needed, abaternent objectives if couníries continué to focus theír efforts on such inefficient instruments. 05-Feb-2014

~~DtlTLOOK~~

~~World Energy Outlook •*"*• .Dr^ Fatih Birol 1EA Chief Economist OECD Pariiamentary Days París, 5 February 2014~~

~~.-'•WOHLD - ' ' ENERGY The woríd energy stene today OOTLOOE ', 2P13 :~~

Some long-held tenets of the energy sector are beíng rewritten - Countries are switching roles: importers are becommg exporters... > ... and exporters are among the major sources ofgrowing demand '-• New supply options reshape ideas about dístribution ofresources But long-term solutíons to global challenges remain scarce

".- Renewedfocus on energy effídency, but CO2 emissíons continué to rise . Fossil-fue! subsidies increased to $544 bHUon ¡n 2012 -- 1.3 bülion people still lack electricity-ín África and South Asia Energy prices add to the pressure on poücymakers ."• Sustained períod ofhigh o'tl prices without paraHel in market history '•- Lorge, persistent regional pnce dífferencesfor gas & electridty 05-Feb~2014

~~The engine pf energy demand IfÓWtS •WORLD ' ENEROT ODTLQOK moves to South Asia 2013~~

~~Primary energy demand, 2035 (Mtoe) Share of global growth 2012-2035~~

~~Eurasla OECD~~

~~China ¡s the main dríver ofincreasing energy demand ¡n the current decade, but India takes overin the 2020s as the principal source ofgmwth~~

~~•ÍNEBOT • A mix that is slow to change ÓUTLÓOK'~~

~~Growth in totai primary energy demand~~

~~n 1387-2011 Gas a 2011-2035~~

~~Goal~~

~~Renewabíes~~

~~Nuclear~~

~~500 1000 1500 2000 2500 3000 Mtoe~~

~~25 years ago the share of fossil fuels in the global mix was 82%; ít ís the same today & the strong rise of renewabíes in thefuture only reduces this to around 75% in 2035 05-Feb-2014~~

~~v 'WORLD . ¡ Emissions off track ín the run-úp ^ "~ ENER'GY OUTLOOS ! tothe 2015 climate summit in France •'- . 3013 . • •~~

~~Cumulative energy-related CO2 emissions~~

~~Total emissions 1900-2035~~

~~Non-OECD 495Í 400~~

~~- OECD~~

~~190D 1930 19 SO 19SO 2013 -1929 -1959 -1989 -201Z -2035~~

~~Non-OECD countries occountfor a rising share of emissions, although 2035 per capita levéis are only halfofOECD~~

~~ÍWOELD . ., "^ ENERGY Renewabíes power up around the woe OUTLOOK~~

~~Growth in electricity generation from renewable sourceSj 2011-2035~~

~~TWh 2100 -~~

~~1800~~

~~1500~~

Europe, Japan China India, Latín America, & United States ASEAN & África The expansión of non-hydro renewabíes depends on subsidies that more than double to 2035; additions ofwínd & solar have implicationsfor power market design & costs 05-Feb~2014

~~Increasing subsidies for ¡ncreaimf^ •-SWOBLD ' ENERGY - OUTLOOK. renewables ! -'2013- , '~~

~~Renewable-energy subsidies by región ¡n 2012~~

~~India~~

~~European Union~~

~~ünsted Síates~~

~~Renewables subsidies increased to $101 billion ¡n 2012, morethan halfofwhich are in the European Union; renewables subsidies are set to more than double by 2035~~

~~¿WOHLB '..ENERGY. - Who has the energy to compete? ' ••OUTLOOK' ' 2QI3 '•"~~

~~Ratio of industrial energy pnces relative to the United States~~

~~Natural fas Electricity Sx~~

~~Reduction 4X from 2013~~

~~Q 2035 3X i m 2x~~

~~United States~~

Japan European China Japan European China Union Union Regional differences ¡n natural gas pnces narrowfrom today's very high levéis but remain large through to 2035; electricity príce differentíals also persist 05-Feb-2014

~~Energy-intensive industries ÓUTLÓpK. need to count their costs -.3013 '•~~

~~Share of energy ¡n total production costs forselected industries~~

~~10% 20% 30% 40% SD% 60% 70% 80% 90%~~

~~Petra chemicals~~

~~Fertilisers~~

~~Aluminium~~

~~Cement~~

~~I ron & steel~~

~~Pulp & paper~~

~~Glass~~

~~Energy-intensive sectors worldwíde accountfor around one-fifth of industrial valué added, one-quarter of industrial employment and 70% of industrial energy use.~~

~~An energy boost to the economy? ._.!,„_ 2013~~

~~Share of global export market for energy-rntenslve goods~~

~~Eurapean Union +3%~~

~~Today~~

~~The US, together wíth key emerging economíes, increases its export market share for energy-intensive goods, while the EU & Jopan see a sharp decline 05-Feb-2014~~

~~'•(•WOKI.D , LNG from the United States ' ENERGY • i. . OUTLOOK can shake up gas markets ,""•" 2'Oíá""-"~~

~~Indicativa economics of LNG export from the US Gulf Coast (at current pnces)~~

~~S/MBtu 18 -~~

~~15 5/MBtu 12 12 -• u Averageírnport price 9 i-? Liquefaction, shipplng 6 • - & regasificstion B United States pnce~~

~~To Asia To Europe~~

~~New LNG supplies decelérate movementtowards o more interconnected global market, but high costs of transport between regíons mean no single global gas príce~~

~~?: WOSLD ' - -EMERGT '• Oríentation for a fast-changing energy : OUTLOOK ",---2013~~

~~China, then India, drive the growing dominante of Asia in global energy demand~~

~~- Technology ¡s opening up new oil resources, but the Middie East remains central to the longer-term outlook~~

~~'i Regional price gaps & concerns over competítíveness are here to stay, but there are ways to react - with efficiency first in Une~~

~~'..i Theshift ¡n the balance of global energy trade towards Asia will have profound implications for energy securíty cooperation EDUCATION: PISA~~

~~France and PISA: Spurring reform?~~

Interview wíth Vincent Peillon, Miníster for Education. France been developed to guide those struggling to learn are a benefit to all. PISA comparisons bear this out the systems that are rnost egalitarian, that are most effective in combating forms of social detenninism and differential educatíonal levéis, are in many cases the ones that perfomi the best-I am thinkrng here of Canadá or Finland.

We have therefore decided to concéntrate the new resources at our disposal on combating dif&culty at school.and social inequalities. We know that the seeds of academic faüure are sowh whenbasic sKUs arenotassimilated early on.Therefore, we are assigningtop priority toprimary schools.Thís hasiedto several thousand new prirnary school teaching positions, making it possible to institute innovative and effective teaching methods. For example, we are allocating more teachers than classes in some schools to monitor students' progress as closely as possible; and we are increasing the enrolment of children under 3 years of age, to foster language leaming and prepare very young children for The results of the 2012 Programme for International Student the acquisition of basic skills, especíally in disadvantaged Assessment (PISA) survey, which assesses the competence neighbourhoods. of 15-year-old students ín maths, reading and science in 65 couníries, delivered a rather unsatisfactory report card What teacher-specific measures could make a difference? for France. PISA lands at a time when the debate on the The OECD emphasises this in all of its reports: well-trained future of the French educational syst^m has heated up, wíth teachers are the main key to success. We are therefore key reforma ín the pipeline. WÜ1 the 2012 PISA survey help? re-orienting teacher training towards pedagogical skills so that We asked Education Minister Vincent Peillon to highlight new teachers can ease gradually into their profession. To get Che main lessons. results more quickly we are also devoting substantíal efforts to continuing training, using digital techriology in particular. The tvhat do you mate of the PISA study, and what is France doing current teacher training curricula do not enable teachers to ensure in particular to improve student performance? that their students master the most basic core skills. From now rhe PISA 2012 findings confirm the trends that have been on curricula will be formulated in cycles, and they will be more smerging for several years now frorn other national and coherent and effective tools which teachers can put to practical .ntematíonal assessments of the state of the French education use, rather than catalogues of knowledge and skflls to be acquired. ;ystem: despite a massive opening up of secondary education, we And the ongoing discussions on the teaching profession will lead lave been unable to help all of our students reach a satisfactory to better recognitíon of teachers' commitment, within schools, to evel-Too many students are experíencing difficulties-that their students' success. 3roportion has even grown over the past 10 years-and what our ;chools are doing is worse than perpetuating social inequalitíes: What are the main strengths of the French educarían system, liey are actually exacerbatíng those inequalities. and how do you plan to leverage them? You are right to draw attention to this; our system has soine Dverthe past year and ahalf we have undertaken aprofound great strengths which warrant recognition and should be werhaul of our school system, with the aim ofreducing developed. I arn thinking in particular of our nursery schools, nequalities and promotíng successful sdiooling for all. PISA 2012 which need support Clearly, our policy towards schooling in :orroborates our analysis and highlights the fact Ehat we are disadvantaged neighbourhoods is facing many difnculties, but leading in the right direction; in fact, it is prompting us to speed it constitutes an essential sphere of ínnovation: we shall be ip our reforms. improving working conditions for the educators concemed. This is a project that I shall be launching in January. Lasúy, b stop the declining average level of our students, the first task we have achieved highly encouraging results in cornbating early 3 to takecareoftlioseexperiencingthe greatest dif&culties. school-leaving, which we expect to continué. t is important to understand that the attention paid to these tudents does not adversely affect those who do well-quite the See how France got on in the 2012 PISA suivey at www.oecd.org/pisa/kevfindings/PISA- pposite. Indeed, the best students do not need others to fail in 2012-results-france.pdf 0n Prendí) rder to succeed. Moreover, the teaching methods that have See also www.oecd.org/pisa/ and www.educatiori.gouv.fr/

~~OECDObserver No 297 0.4 2013 | 19 mm^w pfeii11~~

~~>¿OECD ¿Ktítisgg ©áxflsflsSia? HÍTTTEFl PQUCFES POR BETrrR LltES~~

Young adults (16-24 year-olds) All adults (16-65 year-olds) Sweden Finland • Netherlands ¡ Norway Denmark ' Australia Canadá ' a Basic digital Germany ¡ England/N. Ireland (UK) problein-solving Japan \s (Belgium) | skills

~~Average r: Advanced Czech Republic I digital problem- Austria solving sküls United States ' Korea i Estonia Slovak Republic \d ¡~~

~~Poland •~~

~~80 100 Evolution of employment in occupational groups defined by problem-solving skills~~

~~•Medium-Iow level of problem-solving~~

~~•Low.léyél of problem-solving~~

~~•Medium-hlgh level of problem-solving~~

* Over half a miilion students... — representing 28 million 15-year-oids in 65 countries/economies' - ... took an internationally agreed 2-hour test... — Goes beyond testing whether students can reproduce what they were taught...... to assess students' capacity to extrapólate from what they know and creatively apply their knowledge in nove! situations — Mathemaiics, reading, science, problem-solving, financia! fiteracy — Totai of 390 minutes of assessment material ... and responded to questions on... — their personal background, their schools and their engagement with learning and schooi » Parents, principáis and system leaders provided data on... — schooi policies, practices, resources and institutional factors that help explain performance differences . High mathematics performance Mean SCOre... Shanghai-China psifarms above this fine (613}

~~Chínese Ta¡pe¡||l Hong Kong-China lia Korea~~

~~Macao-China Japan Liechtenstéin Switzerland Nctherlands Í stonia Finland Canadá IViet Nam Austria Sfovenia~~

~~sianFed. itnuamasweden~~

~~Serbia Turkey~~

~~^Bulgaria azákhstan i Thaitand~~

~~1| ¡México 410 ... IZcoúntriesperfombetowthislin?^1 Low mathematics performance~~

~~Strong socio-economíc ¡mpact on student performance CzechRtónftoUr*atvia pam Slovak Republic United States •- - - — — Hungary-r~~

~~Lo',v my'.homaí ;s performance Slrong socícvecpnomic~~

~~Portugal~~

~~SlovakRep. Hungary~~

~~Romanía Romi Bulgaria United Arab EmiiStdgi Kaza Thaíl Chile~~

_ Australia • Austria • Belgíum Canadá O Cnile ' ^ Czech Rep. ^ Dénmark • Estonia Finland F France • Germany © Greece Hungaiy '-Iceland - --- - • Poland, C* irefand Germany Strong socto-economic tmpact on student performance Q Luxembourg Portugal O emtoug México . _ Netherlan(8ovak Rep. NewZealand 1 Norway Q Poland O Portugal • Slovak Rep. 'O Slovenia 'Spain " ••-";-• " ~ © Sweden ) Switzerland ~ CD Turitey I UK i Australia • Austria Betgium Canadá '~ Chile rCzeetvRepr- - ® Denmark Estonia Finland France • Gerínany ^ Gmcce Hungary _. ... Iceland Ireland i Israel C': Italv U Japan 1 Korea • O Luxembourg ortugai, "i "'Bléjtlcó' " •^Sweden 1 Netherlan(SJovak Rep. .< NowZealand c" Norway O Poland O Portugal Slovak Rep. ^í Turkey £7>,Slovenia • Spain O Sweden I Switzerland © Turkcy e) uUsK • Australia Austria Belgium . Canadá C Xhile, _.:~ „,„. „„,.-.,. ''". CzechRep. £.- Denmark • Estonia 1 Finland ; , i Franca _i Germany © Greece i"Húiigary "" Iceland O Ireland I Israel i ítalv Australia (J Japan Korea Q Luxembourg ,.... -Portugal,; ""' México i' 1 NetherlanCSovak Rep." _< KewZealand C Norway O Poland O Portugal SloyakRep. O Slovénia i Spain © Swedcn _i Switzerland © Turkey • UK 'i US

~~uoiwdo ue i]}iM uósjsd jaqjoueisnf 346 hoA 'e;ep ino'miM~~

~~suo|;BD!|qnd |euo!ieujaiu¡ pue leuoiteu nv - o'esia-MMMie vSId inoqe SJOLU ino puij 06/02/2014~~

~~DEMÉWlTOWARDSA~~

~~Wafkpéafson, Deputy'Director, ELS Diríí Rilat, Depüty-;Director('Stl',~~

~~))OECD~~

~~Main messages~~

• Dementia, affecting a growing niomber of people globally, is untreatable today 0 The human and economic costs of dementia are likely to escálate unless: — Health and care systems deliver more prevention, high-quality and integrated services - Better use is made of data to prevent and treat dementia - Incentives for innoA^ation and regulation are improved 06/02/2014

~~Escalaíing R&D Cost~~

~~Costs of bringing a successful drug to market estimated befrveén USD 1.3 - i./B DEVELOPMENT COSTOFÁN AVERAGEDRUG O VER TI ME~~

~~SI 38 MJLLIOH~~

~~Inappropriate caring modef~~

In Canadian long-term Variadon between care homes, long-term care hornes in use of poténtially inappropriate drugs in A ín& residents of seniors in Canadian residents is taking long-term .care have antipsyciiotic drugs been diagnosed with v/Ithout a diagnosis of dementia psychosís

Inappropriateuse of drugs for behavloural and psychotic symptoms of dementia Littie investment in prevention and healthy lifeslyles Too often dementia patients.are hospitalised (45 days ALOS across the OECD) 06/02/2014

~~Rising burden~~

• 5.5% of people a§ed over 6o had dementia across all OECD countries in 2009 • Some evidence of stable or declining age-specific prevalence rates, • But global nnmbers (36 million) are predicted to triple by 2050 without a ciire « As common among older people in developing and emerging economies as it is in developed countries. • Large economic and social cost for farnilies and friends (USD 604 billion globally); still a relatively small expenditure for healtb systems

~~Broken innovation modei~~

-' HHK . Spdl : VtaMlUT i t^ekil ' Fuun / S e Late trails tliat NEWS US Se CANADÁ han» DC fifnc* x» lam Laattaew VACBR failed • Little transfer Alzheímer's disease drug shelved aftertrial failure ofbiomedical innovation to point of care • Risks and rewards for innovators not aligned 06/02/2014

~~s*..0'a". Most frequent form of degenerative E»?' condiíion in oíd people BSL.~~

~~Female and male dementia prevalence rises with age~~

~~65-69 70-74 75-79 80-84 05-89 SO-t- age Sounx: Alzheimer Europe (^009), "PreTOlcncc üf Dementia ¡n Europe",; of-dementÍ3.m-F.ur(ipe 06/02/2014~~

~~Encouraging coordinated policies~~

~~Improving the environment íor innovation ÍSK~~

~~Stronger Public Prívate Modernising regulatory Partnetships path^vays~~

~~.íplñfPipi*; •Sbaaiii. i. •?}•-~~

~~Open Science for greater International Collaboration 06/02/2014~~

~~Harnessing the Potential of Big Data~~

~~Kaiser Permanente Ne\ discovery Electronic health records Newmodels stores 9 mlüion patients - progranis of care 30 petabytes(*) \vith 2 petabytes added each year~~

~~European Bioinformatics Institute is storing 20 petabytes of data~~

* [i petabas = i million Multidisciplinar}1 gigábytes] collaborations

~~For further information~~

~~Online: www.oecd.org/health www.oecd.orq/stí/biotechnoloqv www.oecd.org/sti/nano~~

~~OECD brochure on dementia: http ://wvvw. o ec d .o rq/s ti/a dd res s inq -d ern entí a-t h e-p ecd- res po n s e. p d f~~

~~Contact: health.contact@oecd-orq [email protected] [email protected] - [email protected] 06/02/2014~~

~~))OECD~~

~~Importance of this agenda~~

Tax evasión and avoidance deprive governments of revenues needed to foster growth, job creation and income distribution _lf left unchecked, will undermine voluntan/ compiiance of all taxpayers • Unclermines trust in government more : ;generaliy • Shifts more of íhe tax burden on to honest • citizens 06/02/2014

~~Global Forum on Transparency and Exchange of Information~~

Making a difference in offshore tax evasión and improving. ability of tax administrations to apply their laws >- Over120 member jurisdictions, including allfinancial centres > Over 1100 new EOl arrangements up to the standard > Over 600 recommendations made and'about 300 recornmendaíions addressed relating to bank secrecy, bearer shares, accessto accounting and ownership ¡nformation and removing other barriers to effective International co-operatíon ¡n exchange of ¡nformation on request > GF pubüshed ratings of jurisdictions as Fully Compliant, Largely Compliant, Partially Compliant or Not Compliant.

~~Global Forum Ratings~~

New compliance.ratings for 50 jurisdíctions: - Compliant: Australia, Belgiurn, Canadá, China, Denmark, Finland, France, Iceland, India, Ireland, Isle of Man, Japan, Korea, New Zealand, Norway, South África, Spain and Sweden - Largely Compliant: Argentina,* the Bahamas, Bahrain, Bermuda, Brazil, Cayman Islands, Estonia, Germany, Greece, Guernsey, Hong Kong, Italy, Jamaica, Jersey, Macao, Malta, Mauritius, Monaco, íhe Netherlands, Philippines, Qatar, San Marino, Singapore, Turks and Caicos, United Kingdom, United States - Partialiy Compliant: Austria and Turkey - Npn-Complíant: British Virgin Islands, Cyprus, Luxembourg and the Seychelles 14 jurisdictions not rated, pending furtherimprovementsto their legal and regulatory frarnsworks for exchange of information in tax rnatters. Botswana, Brunei, Dominica, Guatemala, Lebanon, Liberia, Marshall Islands, Nauru, Niue, Panamá, Switzerland, Trinidad and Tobago, the United Arab Emiratos and Vanuatu 06/02/2014

~~From Exchange on Request to Automatic Exchange~~

InApril 2013 the G20 Finance Mlnisters and Central Bank Governors first endorsed automatic exchange as the expected new standard. Leaders welcomed ¡n St. Petersburg This is ánother step change in international tax transparency driven by developments around the globe, with unprecedented political support for automatic exchange of information. Reléase of new global standard: 13 February 2014

~~Basic approach~~

~~Mode! i IGA reporting Model 1 IGA exchanges Léveraging on Mode! 1 !GA ¡mplementation to develop standardísed automatic exchange in a multilateral context~~

~~Account Hotder 06/02/2014~~

~~CRS + CAÁ - exchange standard~~

~~Reporting of Information based on Common Reporting and Due Düigence Standard (CRS) implemented vía dornestic \a\v~~

~~Automatic exchange'of Information based on MTC Article 26 or MAC, & Model CAÁ~~

~~Reporting of ¡nformation based on Cornmon Reporting and Due Düigence Standard [CRS} implemented vía domestic law~~

~~Key features.~~

~~To prevent taxpayers from circumventing the CRS, it is specificaüy ciesigned with a broad scope across three dimensions:~~

~~Personal data: ñame, address, tax residence, TIN Financial data: account balance, all ¡nvestmént income (including sales proceeds)~~

~~Banks, custodians, and otherfinancial institutions (brokers, certain collective tnvestmentvehicles, and certain ¡nsurance compañías)~~

~~V;EJtá^sj$^£'óÍ!átt^~~

~~Individuáis Entities ¡including trusts and foundations) Controllíng persons (¡.e., beneficial owners) of entities 06/02/2014~~

~~Present Main differences from FATCA~~

Residence {not | * Look-throughfór ~) citizenship) ' - , - c. professíonalíy manjaged Nothresholds [ *mvestment entities m Residence-addFess test for "hon-párticipating p re-existi ng accounts •" junsdictions buílding on EU Savmgs < Directíve •* ~ --• Simplified indicia'search

~~Low risk Fls and prodücts genera! exclusión for country specific low-nsk reporting ¡financia 1 institutions and'accounts~~

~~Future Next steps~~

~~Presentation Presentation of of CRS to commentaries and G20 other technical modaüties to G20~~

~~CFAapproval of commentaries and othertechnical modalities 06/02/2014~~

~~Future Roles & responsibiüties~~

V.Cbímtiy:.!? Enact legislation adopüng CR5 3,1 Continued .f/oi^ofi l^* Assist developjrtg lasue reguldtíons and ^ commentariesand other J onirrtrles ( guidance tíicorporatirig more ! techmral modalities i^2 Monitorand revjew Hetdiled rulesofCRS t ] 2, De>.elop best practicas ontíie ]£ __ 'impiementalion fnterlntoCAAs eífeclive useof inforrnatiort i 3 'üajse v&ith \A/PÍO ^ ComrpenrelTand ofher e/changed ]"" t (mclliding vía delegation 1 ^ to WP10J 'ncludmg exc mfrastrticture t * f Ensure confidentiality of «.information. ' f hrfedive use'of mforrnation e-3 Resolvp issuesansingdünng Endure consfsterit • T: implementation to ensure "jtnplerrjentBtioa going consr-tent application gomg rorward'-" „ ' forward and achíeve objectwes of CRS •Alig".rnéritwith TRACE AEOI of bther types of íncome .(iri collaboratíon with the EU)

~~Automatic Exchange~~

The Multilátera! Convention on Mutual Administrative Assistance in Tax Matters provides a legal basis for automatic exchange. - The Multilateral Convention also provides a basis - for assisíance in collection. - Bilateral treaties (and some TIEAs) may also provide a legal basis for bilateral exchange. - Over 60 countries nave signed Conveníion and UK and others have extended coverage to their dependencies and overseas territories 06/02/2014 06/02/2014

~~Backgrouñd~~

International constraints due to tax sovereignty lead to double taxation Core work of the OECD is to remove barriers to cross-border trade and investment. In tax área we do this by designing International standards/ rules to elimínate double taxation Many rules work wel! but have also resulted in double non- taxation Post-crísis priorities: governments not only need money but they need to ensure the fairness ofthetaxsystem If we wantto maintain our ability to elimínate double taxation, betterto have respected and internationalíy alígned rules and therefore to fix defíciencies

~~OECD Work ori Taxaíion~~

* Preventíon.of double taxation remains core work butthere is now recognitionthattheissue of double non-taxatlon dueto base erosión and profítshifting(BEPS) should also betackled

WhatisBEPS? • There are a number of structures which take advantage of asymmetries in dornesticand International tax rules * Artificial separatíon of taxable profitsfrom thejurisdiction where economic activities take place • Most BEPS planning is legal — if governments and parliaments are unhappy with results, the rules should be changed 06/02/2014

~~Why is.BEPS a problem?~~

!t distorts competition o Busínesses that opérate cross-border may profitfrom BEPS opportunities whích gives them competitiva odvantages compared to enterprises that opérate mostly at the domestíc leve! It distorts investment decisions o ...towards activitíes that have lowerpre-tax rafes ofreturn buthígherafter tax rotes ofreturn — this may lead to an ineffidént allocation ofresources It ís an issue of fáirness o // other taxpayers think that MNEs can legally avoid paying income tax, it will undermíne voluntary compliance by a!! taxpayers

~~Increased Attention on BEPS~~

~~Increased attention on cocporatetaxaffairs. Spreading perception that MNEs dodge taxes all around the world and ¡n particular in developingcountries~~

~~Debate on BEPS issues has reached a high política! leve! Parliamentary hearings in a number of countries G20 discussions . 06/02/2014~~

~~Increased Attention on BEPS~~

~~Bloornberg —• fl.cam/g loba! ecqnpmy';. '-¡^- ''~~~~

~~Athírdof UK'sTOOWggesi " • ~" ~~"~~~ OECD preseats plaii to dbsetax ¡¿opílales buslnesses pay no corporatíon U-S_ Companies Dodge SSO Blllion In Taxes~~

~~«cluiodcc.» Síl^™ Vito Global Odyssey~~

~~Tlhc^A.^nVOHif ^ Iiinub-JJUtaB&Lbnt Economy~~

~~Sloonnberg' CoitialEíSdc. !t< njdflnV IxriHt cxjryoTKiia, btí * wiy ¿ood : Jiriíc^iírá^^cííimc~~

~~-20 'Determlned' to Rght Profit-Siiiftiiig Secure Revenue Base 06/02/2014~~

~~Report: Addressing BEPS~~

Addressing Base Erosión and ProfitShifting published on 12 February 2013' V ídentrfies main pressure áreas leadíng to opporttinitíes for BEPS > calis on governments to addr.ess these áreas: in a rmtshel!, If •governrnentsare not happy withthe results underthe laws, they musí changa the laws Sentto and discussed atG20 Finance Ministers meetíng ¡n Moscow on 15-16 February 2013: "[W]e welcome the OECD reportan addressíng base erosión and profitshifting and acknowledge that an important part of fiscal -RUS sustaínabüity issecuring our reuenue bases. We are determinad to devetop mee/sures to address base erosión andprofit shifting, take necessary collective actíons and ¡ookforward to the comprenens/Ve actíon plan the OECD wiíl present to us ¡n July"

~~How Big a Problem Is BEPS? (1)~~

Debate on Statutory vs. Effective Corporate Income Tax Rates — Statuton' tax rates do not provide a reliable measure of the burden that a tax system. imposes on corporate income while ETRs, in particular bactovard-looking ones, could in principie piwide useful indicatíons of whether base erosión and proñtshífting is índeed taking place.

Review of studies relating to BEPS - Availablestudieson Efíective Tax Rates CETRs) ofiVINEs are useful butthere are barely two studies using the same methodolog>'. The use of different raethodologies to calcúlate ETRs (in particular backward-looking ones) resulte in veri- divergent conclusíons regarding the level of taxation imposed on MNEs. 06/02/2014

~~.How Big a Probiem Is BEPS? (2)~~

Data on corporate income tax revenues: — Corporate tax receípts vs. GDP have remained stable even thougb tax rates have been falling over time (although appb'edto abroadertaxbase). - Further analysis is needed to assess the importance of all the different factors and therefore arrive at a conclusiva vie\ on the relevance of Lhese data.

Data on Foreign Direct Investments (FDIs): — substantíal share of ínvestments is made through shell companies , e.g. * ln 2010 the Britísh Virgin Islands were second largest investor into China Ci4?S) añer Hong Knhg (45%) and hefore USA (4%) - MauritJusisthetop investor into India C^KJ, whüe Cyprus Ca8%J4 the Brítiih Virgin Tslands (12%), Bermuda (yK) and the Bahamas í.ñ'ío) are among the íop fíve mvestors into Russía — further analysis ofthese datáis also \varranted

~~Tax Principies and Opportunities for BEPS~~

ln practica anystructure. aimed at BEPSírrcorporates a numberof co- ord'mated strateg'ies/wh'ich often can be taroken down into four elements —" minimisation of taxation in a foreign operating orsource country either by shífting gross profits vía tradíng structures or reducing net profit by maximísing deductíons at the level of the payer . — lowor no w'rthholdingtaxatsource ~ low or no taxation atthe ievel of the recipient (vía low-taxjurisdictions, preferential regimes, hybrid mismatch arrangements) wjth entitlementto substantial non-routine profitsvia intra-group arrangements ~ no current taxation bf the low taxed profits at level of ultímate parent.

~~remvestment oí \ow taxeB cash. 06/02/2014~~

~~Tax Principies and Opportunities for BEPS (2)~~

Effect of strategies is that more profit is associated witb. legal constructs and intangible rights and obligatíons, and to legally shifc risk intra-group, .with the result of reducing the share of profits associated with substantive operatíons involving the interaction of people with one another andthe use of physical capital-

~~There are a number of stnictures, technically legal, which take advantage of asymmetries in domestic and international tax rules~~

~~Whatto do aboutthat?~~

~~The Febrirary Report calis for coordinated and holistic actíon • No country act'mg on sis own can fíx ¡t • Ifyou onlyfix one issue, pressure on other áreas~~

A Comprehensiva Action Plan on BEPS by June 2013 • to próvida eountnes with instrumentSj domestic and international, aiming at betíer aügning rights to tax with real economía activity • requiring "out of the box" thinkíng as well as ambítion and pragmatism to overeóme implementation difficulties 06/02/2014:

~~Developing the Action Plan on BEPS~~

Foliowingthe February report, the workfocused onthe development of an actipn plan -, The development of the-action plan was also informed by engagement with business and civil socíety (consultations with BIAC,TUACand'NGOs) The action plan was approved atthe meeting ofthe Committee on Fiscal Affairs on 25 June 2013. AII G20 countries participated Itwas published on 19 July 2013 on th.e occasion ofthe G20 Finance Ministers meeting 06/02/2014

~~The BEPSAction Plan~~

The actíon plan calis for 15 actions organísed around the following three main pillars: — The coherence of corporate tax atthe internationa! level. — A realignrnent of taxation and substance — Trarisparency, coupled with certainty and predictability It also calls-for targeted work in the área of the digital economy, and for the development of a multilateral instrument to implementthe measures developed under theaction plan.

~~The Digital Economy (Action 1)~~

Spread of the digital economy poses challenges for international taxation. The digital econo'my is characterised by an unparalleled reliance on intangible assets, the massive use of data (notably personal data), the widespread adoption of multi-sided business models capturing valué from externalities generated byfree producís, and^he-difficulty of determiningthe jurisdiction in which valué creation occurs. Fundamental questions as to how enterprises ¡n the digital econ'orny add valué and make'their profits, and how the digital economy relates to the concepts of sourceañd 06/02/2014

~~Coherence (Actions 2 through 5)~~

The Action Plan calis forthe deveiopmentof internationa! standards to ensure the coherence of corporate tax at the international level • This relates to the need to complementexisting rules to prevent double taxation with Instruments that prevent double non-taxation. >- Neutralisethe effectsof hybrid mismatcharrangements (Action 2) > Strengthen controlled foreign compañías (CFC) rules (Actíon 3) > Lirnit base erosión vía interest deductíons and otherfirian'cial payments [Action 4) > Counter harmful tax practices more effectively (Action 5) -

~~Substance (Actions 6 through 10)~~

The Action Plan calis for a realígnment of taxation and substance: * This is about.treaty abuse and transfer pricing, where the current rules do not always produce appropríate results. > Prevent treaty abuse (Action 6} y Preventthe artificial avoidance of Permanent Establishrnent status (Action 7) • > Assure that Transfer Pricmgoutcomesare ¡n line with valué creation - Intangibles/ Risk & capital / High-RiskTransactions and Other Payments (Actions 8, 9,10} 06/02/2014

~~Transparency and Certainty (Actions 11 íhrough 14)~~

BEPS requires greater transparency and certainty > Establish methodologies to collectand analyse data on BEPS and the actions to address it (Action 11) > Require taxpayersto disclose theiraggressive tax planning a'rrangements (Action 12) >- Re-examine transfer pricing documentation (Action 13} > Make dispute resoiution mechanisms more effective {Action 14)

~~Deveioping a Multilateral instrument (Action 15)~~

Some actions will result in changas to the OECD ModelTax Convention and changas to the OECD fvlodel Tax Convention are not directly effective without a'mendments to bilateral tax treatíes.. If undertaken on a purely treaty-by-treaty basis, the sheer number of treaties in effect will make such a process very lengthy. There ¡s a need to consider innovative ways to implementthe measures resultingfrom the workon the BEPS Action.Plan. 06/02/2014

~~Australia 2014 OECD/G20 BEPS Project~~

All eight non-OECD G20 countries (Argentina, Brazil, China, India, Indonesia, Russia, Saudi Arabia and South África) and OECD Accession countries (Colombia and Latvia) are Associates in the BEPS Project

Associates in a Project particípate on an equal footingwith OECD countries, including participation in its bureau in the Committee overseeingthe project in the discussions and in the decision-making process 06/02/2014

~~Organisation of work~~

~~Work on the actions is done by CFA through subsidiary bodies (vvhere the experts from capitals sít):~~

- Working Party 1 onTax Conventionsand-Related Questions — Working Party 2 Tax Policy Analysis and Tax Statistics . — Working Party 6 on Taxation of Multinationa! Enterprises — Forum on Hármfu! Tax Practices — Working Party 11 on Aggressive fax Planning — Task Forcé on Digital Economy - Informal Expert Group on developinga Multilateral Instrument

~~Developing couníries3 input~~

Task Forcé on Tax and Development OECD Global Relations Program " . Global Fora on Tax Treatíes, on Transfer Pricing and on VAT . The United Natlons — UN participates in the tax work of the OECD — UN Subcommittee on Base Erosión and Profit Shifting Issues for Developing Countries (October 2013). 06/02/2014

~~Stakehoiders' input~~

Consultatíon with non-governmental stakeholders is also key: — Business and Industry Advisory Committee (BIAC)' — Trade Union Advisory Committee (TUAC) — Non-governmental organisations, thinktánks, and academia

Mechanisms: — Requestsfor input published on the OECD website — Discussion drafts published for comments - Public consultations organised to discuss the comments received on the díscussion drafts — Regular updates regarding progress of the workprovjded vía Webcastsessions

~~An ambitious timeline~~

• Digital Economy Report •" CFC Rules . . ' * "AddressingTP Interest •• Hyfaríd Mismatches - * • IntérestDeductiblIíty • . ..'{-jDeductions « Strategyo'n expansión of FHTP • Review of HTP Regimes ",' Revisión' of HTP Crlteria (phase 2) (phase 1} :;:.,.; (phase'3} ''. • Addressíngavoldance of PE •-,. Multilateral Instrument • -PreventingTreaty Abuse status • Addressing TP aspects of • AddrsssingTP aspects of " '.Intangibles (pílase 1} ", Intangibles (phase 2} \ *.' AddressingTP • AddressingTP aspects of Rísks and Capital • .Documentation • Addresslng TP aspects ofother. .;.'': Multilateral Instrument Hlgh RiskTransacííons . J • Report • Report on Data and Economlc Analyses • Mandatory DIsclosure Rules • Dispute Resolution 06/02/2014

~~The Digital Economy~~

First meetingof theTask Forcé in October2013 — Analysis of business models and Identification of special features of digital economy players (such as mobility, reliance on data, network effects, multi-sides business rnodels) - Effects of these features on-BEPS strategies — Actíons to tackle BEPS in the digital ecpnomy — Broader, systemic issues raised by the digital economy and options to addressthem Second meeting this week Discussion Draft out for comments ín March 2014

~~Public Consultaron ¡n Ap:ri! 2014 Reportto be finalised by September 2014 06/02/2014~~

~~Treaíy Abuse~~

• Aim: — Restore fuII effects and benefits of International standards '» Tools: -• i - Anti treaty abuse pr'ovisions in treaty and domestic law - Clarify tax treaties not intended to genérate double non-taxation — Clarify poücy considerations beforeenteringjnto a bilateral tax treaty • . Process: — Scoping by WorkingParty 1 ¡n September 2013 - Full discussions by Working Party 1 ín February/March 2014 - Discussíon draftwill be released in March 2014 .— Public consultation meeting vvill take place ínApril or May 2014

~~Hybrid Mismaích Arrangements~~

Action itern requires development qf model treaty provisions and recommendations for domestic rules by Septernber 2014. First meeting held in October 2013, followed by a meeting in December. Consideraron of hybrid mísmatch arrangements that give rise to either: - a doubte deduction — ora deduction with no rnatchingincomeinclusión. This includes scenarios ínvolving — a hybrid finandal instrument — a hybrid transfer and ~ a hybrid entity (whether it receives or makes payments) -Adiscussion draftwill be issuedforcomments in earh/Apnl with a public consultation in May. 06/02/2014

~~Addressing TP aspects of Intangibles~~

Majar media attention on transfer pricing (especially intangibles) Conclusión BEPS Action Plan: the current transfer pricing system leads to seríous BEPS concerns, but replacíng the arm's length principie ¡s not the solution. Special measures may be necessary." 4 Action Points on TP. Aim: assure that transfer pricing óutcomes are in line with valué creation Process intangibles: — Projectstarted in 2010 and scoping included various consultations — First discussíon draftwas.published ¡n June 2012. A publíc consultation was held in November 2012 — A revisad discussion draft was published in July2013. A public consultation was held ¡n November 2013 — Finalisation will take place during the Working Party 6 meetings in March and May 2014

~~Harmful Tax Practices~~

First meetingfollowingthe pubiication of the BEPS action plan held ¡n December; Follow up meetings in February and May 2.014. By September 2014 need to review memb'er regímes, with a priority on transparency, ¡ncluding compulsory exchange of information on.rulings, and on requiríng substantial activity for preferential regimes. Review of G20, non OECD members regimes also to be started before September 2014. A report on the outcome of the Forum's review to be published by September 2014. 06/02/2014

~~Transfer Pricing Documentation~~

Tax administrations need for 'blg picture' infornnatíon on the global valué chain versus complíance burden MNEs Action Point includes: Country-by-Country reporting of fricóme, economic actívity and taxes to governments Process: - TP documentation: oneof five vvorkstreams tsrgeted atTPsimplification — White paparon TP documentation published ¡nJuly 2013 — Questíonnaire on Country-by-Country reporíing published in October 2013 — Public consultation held in November 2013 — 30 January2014: reléase of a díscussion draft of Chapter Vof the Transfer Pricing Guídelines, ¡ncluding a Country-by-Country reporting témplate ~ March 2014: public consultation ~ May 2014: finalisation byWP6

~~The Multilateral Instrument Report~~

First phase of the work being carried out by the Secretaríat with ¡nputfrom eminent pubiícinternational and tax law experts and in consultation with Working Party 1 of the CFA Focus is on feasibility of use of a multilátera! instrumentsto ímplement BEPS rneasures and amend bilateral tax treaties Several difficult issues but none appears unsurmountable Report to be finalised by Septernber 2014 06/02/2014

~~Making reform happen!~~

Blogger: "The 44-page Action Plan is definitely a glimmer ofhope. The actions outlined in the plan, if translated into laiv by OECD couritrieS; could mark a turning point in the history of international tax cooperation andprovide govemments with the necessary means to prevent profit s'hifting". PwC's I7th Animal Global CEO Siirvey: - 73% of CEOs accept the international tax system has not kept

~~reforming. — Only a quarter of them thought that current OECD 06/02/2014~~

~~A range of anti-BEPS measures~~

BEPS Project willresultin a range of measures: — Tax Treaty changes — Changes to the Transfer Pricing Guidelines ~ Recommendations regardingdomestic lawdesign Domestic law measures , — Require Parliarnentary approva! Tax treaties ratification — Multilateral instrument may save time and resources 06/02/2014-

~~15 Actions~~

i. AcJdress the Tax Challenges of the Digital Econorny 2. NeutraÜse the Effects of Hybrid Mismatch Arrangements 3. Strengthen Controlled Foreign Companies Rules 4. Umit Base Erosión via Interest Deductlons and Other Financial Payments 5. Counter Harmful Tax Practices More Effectively, Taking ¡nto Account Transparency and Substance 6. Prevent Treaty Abuse 7. Prevent the Artificial Avoidanceof PE Status 8. AssurethatTransfer PricingOutcomesare in Une Wíth Valué Creation/Intangibles 9. AssurethatTransfer PricingOutcomesarein Une With Valué Creation/ Risks and Capital 10, Assure thatTransfer Pricing Outcomes are in Líne With Valué Creation / Other High-Risk Transa ctions Establish Methodologles to Collect and Analyse Data on BEPS and the Actions to Address It Require Taxpayers to DIsclose Theír AggressiveTax Planníng Arrangements Re-examineTransfer Pricing Documentation Make Dispute Resolutíon Mechanisms More Effective Deveiop a Multilateral Instrument ' '

~~Action 1~~

Address the Tax Challenges of the Digital Economy ¡dentify the mam difficulties that the digital economy poses for the appücation of exísting internationa! tax rules and deveiop detailed optíons to address these dífficulties, taking o holistic appróach and consideríng both direct and indirect taxation. issues to be examined indude, butare not limitedtQ, the abilítyofa company to have a signifícant • digitalpresence in the economy of another country withoutbeing Hable to taxation due to the lack ofnexus undercurrentínternational rules, the attribution of valué created from the generation ofmarketable location-relevant data through the use of digital products and services, the characterísation of ¡ncome dertved from new business models, the application of relatedsource rules, and how to ensure the effective collection of VAT/6ST with respect to the cross-border supply of digital goods and services, Such work will require o thorough analysis ofthe voríous business models ¡n this sector. 06/02/2014

~~Action 2~~

Neutralise the Effects of Hybrid Mismatch Arrangements Develop model treaty provísions and recommendations regarding the design of domestíc rules to neutralíse the effect (e.g., double non-caxatlon, double deduction, long-term deferral) of hybríd Instruments and éntreles. Tñis may include: (i) changes to the OECD Model Tax Convention to ensure that hybridInstruments and entítiss (as well as dual resident entítíes) are not used to obtain the bsnefits oftreaties unduiy; (¡i) domestíc law ' provísions thatpreventexemption or non-recognltíon far payrnents that are deductible by the payar; (i¡¡) domestíc law provísions that deny a deductíonfora payment that is not ineludible ín ¡ncome by the redpient (and is notsubject to taxotion under controlled foreign company (CFC) or similar rules); (iv) domestic law provisíons that deny a deducción foro payment that is also deductible in (inotherjurísdíction; and (v) where necessary, guidanceon co-ordinatíon or tte-breaker rules ¡f more than one countryseeks to applysuch rules to a transaction orstructure. Specia! attention should be given'to the ¡nteraction between posslble changes to domestic law and the provlsions ofthe OECD Model Tax Convention. This work will be co-ordinated with the work on ¡nterest expen.se deduction límitatíons, the work on CFC rules, and the work on treaty shoppíng.

~~Action 3~~

Strengthen Controlled Foreign Companies Rules Deveíop recommendatians regarding the design of controlled foreign corporoífon rules. This vjork will be co-ordinated with other work as necessáry. 06/02/2014

~~Action 4~~

Ümit Base Erosión vía Interest Deductions and Other Financial Payments Develop recommendations regarding best practicas ¡n the design of rules to prevent base erosión through the use of interest expense, for example through the use ofrelated-party and third-party debtto achieye excessive interest deductions or tofinance the production of exempt or deferred¡ncome, and other financia! payments that are economicaliy equivalent to interestpayments. The work wilj evalúate the effectiveness ofdifferent types of limitations. In connection with andinsupportoftheforego'mg work, transfer prícing guidance will also be developed regarding the prídng ofrelated partyfinancial transactions, indudíng financia! and performance guarantees, derivatives (¡ncludíng interna! derívatíves usedín intra-bank dealings), and captíve and other insurance arrangements. The work w¡¡! be co-ordinated with the work on hybríds and CFC rules.

~~Action 5~~

Coünter Harmful Tax Practices More Effectívely, Taking into Account Transparency and Substance Revamp the work on harmful tax practices with a príoríty on ¡mproving transparency, ¡ncluding compulsory spontaneous exchange on ruüngs related to preferentia! regímes, and on requiríngsubstantial activityfor any preferentialregime. It will take a holistic .approach to evalúate preferentia! tax regimes ¡n the BEPS context. ¡t wül engage with non-OECÜ memfaers an theüasísaf theexistmqframewarkandcansíderrevísfonsar 06/02/2014

~~Action 6~~

Prevent Treaty Abuse Devetop model treaty provtáons and recommendations regarding the design of domestic rules to prevent the granting oftreaty benefits ¡n inapproprlate tircumstances^ Work wll! alsobe done to clarify that tax treaties are not ¡ntended to be used to genérate doubte non-taxatíon and to ¡dentif/ the taxpoücy considerations that, in genera!, couritries should consíder beforz dedding to enterinto a tax treaty with anotber country. The v/ork wHlbe co-ordínated with the work on hybrids.

~~Action 7~~

• Prevent the Artificia! Avoidance of PE Status Osvelop changes to ths definitíon ofPE.to preventthe artificial avoidcnce ofPEstcws in relotion to BEpS, ¡nduding through the use ofco'mmissionaíre arrangemenis cnd the specific activíty exemptíons. Workon these issueswilt o/so address re/otee/profit attribution ¡ssues. - 06/02/2014

~~Action 8~~

Assure that Transfer Pricing Outcomes are ¡n Une With Valué Creation / Intangibles Develop rules to prevent BEPS by movíng intangibles among group members. This will involve: (i) adoptíng o broad and dearly delineated definition of intangibles; (¡i) ensurlng thatprofits assodated with the transfer and use of intangibles are appropriately allocated ¡n accordance with (ratherthan divorcedfrom) valué creation; (¡U) developing transfer prícing rules orspecial measuresfor transfers ofhard-to-value intangibles; and (¡v) updaiing the guidance on cosí contríbutíon arrangements.

~~Action 9~~

Assure that Transfer Pricing Outcomes are in Line With Valué Creation / Risks and Capital Develop rules w prevent'BEPS by transferring rísks among, or aüocoting excessíve capital to, group members. This w¡ll involve adoptíng transfer prícing rules orspecial measures to ensure that ¡nappropríate returns will not accrue to an entitysolely because ¡t has contractually assumed rísks or hasprovided capital. The rules to be developed w¡l! o/so require alignment of returns with valué creation. This work will be co-ordinated with the work an ¡nterest expense deductions and otherfinancia! payments. 06/02/2014

~~Action 10~~

Assure thatTransfer Pricing Outcomes are in Line With Valué Cre'ation/Other High-RiskTransactions Develop rules to prevént BEPS by engaging in transoctíons which would not, or would only very rarely, occurbetween thírd partfes. This w;'// involve adopting transferprídng rules orspedol mensures to: (i) darífy the drcumstances in which transactions can be recharacterísed; (¡i) darífy the applicatíon of transfer prídng methods, ¡n particular profit spÜtSj in the context of global valué chafas; and (tii) próvida protection agoínst common types ofbase eroding payments, such as managementfees and head office expenses.

~~Action 11~~

Establish Methodoiogies to Collect and Analyse Data on BEPS and the Actions to Address lt Develop recommendatíons regarding indicators ofthe scale and economic impact of BEPS and ensure that too/5 are available to monitor and evalúate the effectrjeness and economic impact ofthe actions token to address BEPS on an ongoíng oasis. This \vill involve.developíng an economic analysís ofthe scalé and impact of BEPS (¡ndudíng sp'ílíover effects across countríes) and actions to address ¡t..The work v/ill o/so ¡nvolve assessíng a range ofex'isting dato sources, ¡dentifying new types ofdata thatshould be coÜected, and deve!op¡ng methodologies based on both aggregate (e.g. FDI and balance of payments data) and micro-Sevel data (e.g. from financia! stotements and taxretvrns), taking into consideration the need to respect taxpayer confídentíality and the - administrative costsfor tax administrations and businesses. 06/02/2014

~~Action 12~~

Requíre Taxpayers to Disciose Their Aggressive Tax Planning Arrangements Develop recommendatíons regarding the desígn of mandato/y dlsdosure rules for , aggressiveorabusívetransactíons, arrangements, or structures, taking into consideratíon the administratíve costsfor fox admmístrations and businesses and drawing on experiences ofthe increasing number of countries that have such rules. The work will use a modular design allowingfor máximum consistency but allowingfor country specific needs and rísks. One focuswül be Internationa! taxschemes, wherethe work wífl explore using a wide definition of"tax benefít" Ín arder to capture such transactions. The work will be co-ordinated with the work on co-operot/ve compíiance. It w¡¡¡ also ¡nvo¡ve designing and putting ín place enhanced models of Information sharíng for ¡nternatíonal tax schemes between tax administrations.

~~Action 13~~

Re-examine Transfer Prícing Documentation Develop rules regarding transferpridng document'atíon to enhance transparencyfor tax adminlstratíon, taking ¡nto consideraron the conípüance costsfor business. The rules to be developed will indude a requirementthat MNE's provide all relevant govemments with needed Information oh their global aüocatton ofthe meóme,'economíc actívity and taxes patd arnong countries accordlng to a common témplate. 06/02/2014

~~Action 14~~

Make Dispute Resolutíon Mechanisms More Effective Deveiop solutions to gddress obstadas thatprsvsnt countríesfrom solving treaty-related disputes underMAP, indudíng the absence ofarbitration provisions in most treoties and thefact that access to MAP and arbitratíon may be denied in certain coses.

~~Action 15~~

Develop a Multilateral Instrument Analyse the tax andpubllc¡nternatíonallawissues related to the devdopmento/o multilateral instrument to enabíejurisdictions'that wish to do so to ¡mplement measures developzd in the course ofthe work on BEPS-and amend bilateral tax treaties. On the basís ofthis onalysis, ¡nterested Partíes wül develop a multilateral instrument designed to provide an ¡nnovative approach to International tax matters, reftectíng the rapidly evolvíng nature ofthe global economy and the'need to adapt quickly to thís evolution. . 06/02/2014

~~Timeline and Output (actions 1-8)~~

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~~Time.ii.ne and Output (actions 9-15) 06/02/2014~~

~~^ Timeline and Output by September 2014~~

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~~Timeline and Output by September 2015~~

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~~Changes to tha Transfor Prtclng Gutóal.'nes an¡¡ Ecstóíy 1= "Jie .Modal.Ta s Conventíon~~

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~~Timeline and Output by December 2015~~

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~~Expected Outcomes (Actions 1 - 9)~~

~~1. Addresslhe tan challengesoftlie digital econorny~~

~~2. Neutralise the effeéts of hybrid mismatch arrengements~~

~~E Strengthen CFC tulef~~

~~4, Llrp.it base erosión viajnterest deductíons and other finan pial payments 5 Counter harmful tax: practices nwre affectivety, taking Into accounttransparencv and substance 6. Prevent freaty abuse~~

~~"7 Prevent the artícela! avoídance of PE status~~

~~8' Assiire tránsfer pricing outcomes are 1n Uñé wlth. valué. creatlon/intanglbles 9 Assuretránsfer pnclngautcomes are ín linewith valué creatiort/risfe and capital 06/02/20.14~~

~~Expected Outcomes (Actions 10-15)~~

10 Assure transfer pncing outcomes are m line utth valué creatton/fiigfi risk transactions -ll."EstabHsh methodologies to collect anrf analyse data on BEPS and actío'ps to address ¡t 12 Requlre taxpayersto disdosethelraggresslve tax plannlng . arrangements -13. Re-examlne transfer priclng docüméntation

~~14 M3^ dispute resolution mecíianisTiis' more effecííve~~

~~15 Develop a míiltilaterat Instrurnent~~

~~12 Questions and further ¡nformation~~

~~QUESTIONS?~~

~~Further information: http://www.oecd.org/ctp/beps.htm~~

Registerto receivefree'e-mailalerts on the latest tax news from the OECD Centre for Tox Policy and Administration El capital humano es la esencia de la innovación. Habilitar a la gente para innovar depende de na educación, amplia y apropiada así como del desarrollo de aptitudes de amplia cobertura que mnplementen la educación formal. Los planes de estudio y las pedagogías necesitan adaptarse ara preparar a los estudiantes con la capacidad para que aprendan y apliquen nuevas aptitudes urante su vida. Al mismo tiempo los sistemas para la educación y formación profesional exigen ¿formas para asegurar que sean eficientes y satisfagan las necesidades de la sociedad actual, /lejorar la calidad docente es especialmente importante para mejorar los resultados; esto podría ocluir una mejor selección inicial de maestros, la evaluación continua para identificar áreas para iacer mejoras, y reconocer y premiar la docencia eficaz.

Las instituciones de educación superior y los centros de instrucción práctica son nodos undamentales del sistema de innovación; ambos producen y atraen el capital humano necesario para a innovación. Estas instituciones actúan como puentes indispensables entre los participantes — impresas, gobiernos y países—- en sistemas de innovación más abiertos y más amplios. El principal ;ambio de dirección es reconocer la función imprescindible de las universidades en la iniciativa de la innovación en lugar de considerar simplemente, como se da el caso con excesiva frecuencia, que son proveedores de bienes públicos esenciales. Esto requiere que los responsables de la formulación de políticas presten mayor atención para asegurar la independencia, la competencia, la excelencia, el espíritu emprendedor y la flexibilidad en las universidades.

Los emprendedores-son-participantes.de especial importancia en la innovación; ya que ayudan a convertir las ideas en aplicaciones prácticas. En Estados Unidos, en el 2007, las empresas que tenían menos de cinco años representaban casi dos terceras partes de los nuevos trabajos netos. La creación exitosa de empresas a menudo llega con la práctica; de ahí la importancia de la experimentación, la entrada y la salida del mercado. Sin embargo, sólo una pequeña parte de la población recibe educación para la creación de empresas. Las políticas de educación y capacitación deben ayudar a fomentar una cultura emprendedora al inculcar las aptitudes y actitudes necesarias para un empuje creativo.

El talento internacionalmente móvil contribuye a la creación y difusión del conocimiento: sobre todo del conocimiento tácito. Para estimular esta circulación del conocimiento, los gobiernos deben crear capacidad de absorción, abrir los mercados laborales a los estudiantes extranjeros y asegurar que el régimen fiscal no perjudique a los trabajadores calificados móviles. Por su parte, los países emisores pueden poner en práctica políticas que ofrezcan oportunidades a los investigadores expatriados de reintegrarse a su mercado laboral. Los regímenes de migración para los muy calificados deben ser eficientes, transparentes, sencillos; y permitir el desplazamiento en forma circular o temporal. Las políticas respectivas necesitan ser congruentes con un programa de migración más amplio, y con las políticas de desarrollo y ayuda; de manera que contribuyan al control efectivo de la migración.

La gente participa en la innovación no sólo al crear, difundir o adaptar tecnologías en el lugar de trabajo; sino también como consumidores. Los regímenes de política de consumo y la educación de los consumidores deben mejorar el funcionamiento de los mercados al ayudar a preparar a los consumidores a convertirse en participantes activos del proceso de innovación; y

« Centrarse de manera más estratégica en el papel de las políticas a favor de la innovación para generar un crecimiento más fuerte, menos contaminante y más justo. • Ampliar políticas para promover la innovación además de la ciencia y la tecnología para reconocer que la innovación implica una amplia gama de inversiones en activos intangibles y de participantes. • Políticas de educación y capacitación adaptadas a las necesidades de la sociedad actual, para habilitar a la gente en toda la sociedad para que sea creativa, participe en la innovación y se beneficie de sus resultados. » Mayor atención normativa a la creación 3' desarrollo de nuevas empresas y su papel en la creación de innovaciones claves y fundamentales, así como de nuevos empleos. • Bastante atención al papel fundamental de la investigación científica para permitir la innovación radical y proporcionar los cimientos para la innovación futura. • Mejores mecanismos para promover la difusión y aplicación del conocimiento mediante redes y mercados con buen funcionamiento. • Atención al papel del gobierno al crear nuevas plataformas para la innovación; por ejemplo, mediante el desarrollo de redes de banda ancha de alta velocidad. (As prepared for delivery) Good morning Ladies and Gentlemen,

It is a great pleasure to be at Chatham House to address an ¡ssue of critical global importance: the fight against transnational corruption. Global corruption is one of the greatest challenges of our era: it distorts markets, weakens our governments, raises the costs of doing business, promotes inequaüties and erodes our sustainabie development efforts.

We are talking about one of the biggesí systemic threats of the 21 st century, and it has to be combated with ali our strength and ail our intelligence, with the help of effective international agreements, treat¡9S and conventions. Combating corruption has become one of the top priorities for the OECD and I am therefore delighted to open this Conference. i thank Chatham House for this opportunity.

~~Nothing like a Bíg Crisis to Combat Corruption~~

Let me start by pointing to a major wake-up cali in the fight against corrupíion: the crisis. One of the most important revelations of this crisis is that there is an urgent need to build a stronger, more transparent and better coordinated regulatory framework for the global economy. All participants in economic transactions need to develop, together, a set of common rules: on tax evasión, public procurement, due diligence, corporaíe governance, confiict of interest, lobbying, bribery, among others. And we need a joint effort to implement and keep updating these rules through effective and inclusive multilátera! cooperation.

The OECD has been intensifying ¡ts work to help countries buüd and implement these new frameworks and rules in a wide spectrum of policy áreas, with an arsenal of [soft laws1, benchmarks, studies and peer pressure mechanisms. Let me mention a few examples. Our work on Base Erosión Profit Shifíing (BEPS) is providing governments with new domestic and ¡nternational tools to fight tax avoidance. Our Guidelines for Multinational Enterprises provide voluníary principies and standards for responsible business conduct to 45 signatory couníries..0ur Principies for Transparency and Integrity in Lobbying, are helping to improve governance and accountabiiity in an increasingly imporfant activiíy,

One of the major legacies of this crisis is the erosión of public trust in our governments. According to our Government at a Giance 2013 study, confidence in naíiona! governments in OECD countries now stands at a record low leve! of 40%.1 We are also helping countries recover íhat trust. Our Principies for Enhancing Integrity in Public Procuremení are helping governments promoíe transparency, good management, monitoring and accountabiiity in these processes. We are also helping to reduce the risk of capturing of politicíans by promoting more síringent and transparent rules for financing of political campaigns.

We aiso launched a CleanGovBiz iniíiative, which draws together íhe OECD's anti- corruption tools, reinforces their implementation, improves co-ordinaíion among relevant piayers and monitors progress towards integrity. But let me focus ¡n more depth on one of the fields in which we nave deveioped more expertise and global clout: the fight against international bribery, where the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions has become a global reference.

~~The OECD Ant-Bribery Convention: Evolution (and Revolution!)~~

It is very difficult to calcúlate the exact cosí of corruptíonj but some have estimated that every year cióse to $1 tríllion dollars2 polluíe our systems and go to waste in bribes, generating a cascade of negaíive synergies for our economies, but most ¡mportaníly, for the life prospects of our peopie. Not so long ago, this practice was still considered part of doing business. in many countries, bribes were still treated as a tax deductible expense. Fortunately, afíer years of hard work, the OECD Anti-Bribery Convention was promulgated and entered into forcé in February of 1999, becoming the first legally-binding international instrument to focus

~~exclusiveiy on active bribery in business transactions.3~~

The Convention's rigorous peer review mechanism, the OECD Working Group on Bribery, has been referred to as the 'gold standard' by Transparency International. The Group currently counts 41 member countries - the 34 OECD member states plus Argentina, Brazil, Bulgaria, Colombia, Latvia, Russia and South África. There are still some key players rnissing, such as China, India, Indonesia and Saudi Arabia. But we are committed to convince them to join this fight

Many countries nave made radical changes to their iaws and institutions to comply with the Convention. Governments had to make it a crime for their nationaSs and their companies to pay bribes to pubiic officials abroad in order to win business. This has been achieved by ali member countries, with one of the most recent examples here in the UK, through the UK Bribery Act, which entered inío forcé in 2011, foilowing rigorous and repeated OECD reviews.

~~The Convention has helped governments to eníorce anti-bribery Iaws and secure convictions. Between 1999 and December 2012, 221 individuáis and 90 companies were~~

sanctioned for foreign bribery in 13 countries;4 the record fine for a foreign bribery case was imposed against Siemens and, to date, the company has incurred around 1.8 biliion euros ¡n total sanctions, across four jurisdictions, and criminal proceedings continué; we aiso know of 320 ongoing investigations into alleged acts of foreign bribery in 24 Parties

to the Convention.5 Today there are six other multilateral anti-corruption conventions.6 And there ¡s an increasing number of mechanisms ín place to facilitaíe co-operation among law enforcemení authorities, including the biannual informal meetings of iaw enforcement authorities at the OECD. Anti-bribery has now become a key priority for a number of internationa! ¡nstiíuíions. Now there is even a dedicaíed G20 Anti-Bribery Working Group. These are very important achievements.

~~However, There is Still a Long Road Ahead.~~

¡n spite of this'remarkable progress, many challenges still persisí. Over half the Working Group on Bribery member countries have yet to successfully prosecute a foreign bribery case. And a number of emerging economies have not yet criminalised foreign bribery in spite of the various international obligations to which they have subscribed.

Our own countries do not always appearto be totaliy coherení. Political leaders may be tempted to defe'nd their national companies even when such companies are suspected or even found guilty of corruption. Recent cases show state owned or síate controlled enterprises can indulge in improper behaviour as much as privately owned companies. And law enforcemení auíhoriíies do not always share information to assist their counterparts ¡n international investigations.

Businesses also need ío take a closer !ook in the mirror. The overwhelming majonty of cases concluded ío date have involved systemic corrupíion across iníernational operaíions of major Multinational Enterprises (MNEs), This lies at íhe heart of the unprecedented crisis of trust íhat our couníries are facing. Corporations need to stop bribing public officials to recover pubiic trust and legitimacy, but most importaníly, to allow markets to work; governments provide good public services; and economies to increase their compeíitiveness. But how do we achieve all this? The Way Forward: Advancing in Several Fronts.

We need to move ahead ¡n several fronts. First and foremost, a!l major economía players must be part of the effort. It is ¡mperative that all G20 countries become Parties to the OECD Anti-Bribery Convention, We aíso need to be consistent ¡n terms of enforcement; and for that to happen, law enforcement authorities need to nave sufíicient independence and financia! and human resources.

In addition, the playing field must be levelled both on the supply side and the demand side of transnational corruption. Cases in which a company and/or an individual are punished for having bribed a foreign public official must be accompanied by the investigation and prosecution of the foreign public official in question.

We also must become more sophisticated in our analysis of the drivers and methods of corruption. Professionals like lawyers, accountants and auditors need to be much more aware of the risks they face when advising in international business transactions. Ratings agencies should include corruption risks in their analysis of companies (as far as ! know only one has done so - Fitch).7

Official development assistance and export credit agencies should also minimise the risks of corruption, Invesíment Funds and Sovereign Wealth Funds should also take "gross corruption" risks into account. NGOs should also keep the pressure.

Last but not leasí, International Organisations need to establish a common visión and a common agenda on the way forward. The OECD will keep working hard to strengthen and broaden its work on anti-corruption. We will keep bringing the síakeholders together to inclusive multilateral events, such as the second OECD Annual Integrity Week which will take place in París in mid-March and to which you are all invited. OECD BETTER LIFE INiTIATIVE

The OECD Better Life Initiative aims to promote "Better Policies for Better Lives", in une with the OECD's overarching mission. Launched by the Organisation in 2011, the Initiative has two major elements:

How's Ufe?, a report bringing together for the first time internationally comparable measures of well-being in line with recommendations from the Stiglrtz-Sen-Fítoussi Cornmission in 2009. The report assesses 11 specific aspects of well-being- housing, íncome, Jobs, community, education, environment, civic engagement, health, life satisfaction, safety and work-üfe balance, and two cross- cutting dimensions, sustainability and inequalities- as part of the OECD's on-going effort to devise new measures for assessing well-being that go beyond Gross Domestic Product (GDP).

Better Life Index (BU), an online tool that encourages the public to measure well-being according to what is important to them. The interactive composite Índex of well-being aims at involving citizens in the debate on societal progress. Visitors to the site are ¡nvited to rate each of the 11 topics, creating a personal lens through which to measure and compare well-being- The resulting visualisation provides a unique view of how countries perform according to the prioritíes individuáis themselves set. The feedback provided by users offers a fresh perspective from which to evalúate public policy and its implementation.

The OECD Better Life Initiative: • Helps to inform policy making to improve quality of life. • Connects policies to people's lives. • Genérate support for needed policy measures. • Improves civic engagement by encouraging the public to créate their own Índex and share their preferences. • Empowers the public by ¡mproving their understanding of polícy-making. HOW'S LIFE IN CHILE?

Chile has made tremendous progress over the last decade in terms of Housing improving the quaüty of Ufe of its citizens, Since the 1990s, the country has 3.5 seen a track record of robust growth and poverty reduction..Notwithstandíng, Chile ranks low ¡n a large number of topics relativa to most other countries in I the Setter Life índex (Figure 1). Income Income: In Chile, the average household net-adjusted disposable income ¡s 11 0.6 039 USD a year, much less trian the OECD average of 23 047 USD a year. But there is a considerable gap between the nchest and poorest - the top 20% pf the population earn 1 3 times as much as the bottorn 20%. Jobs Jobs: !n terms of ernployment, over 61 % of people aged 1 5 to 64 in Chile have 4.S a paid Job, below the OECD employment average of 66%. Some 74% of men are in paid work, compared with 49% of women. People in Chile work 2 047 hours a year, more than the OECD average of 1 776 hours. Some 16% of Community employees work very long hours, more than the OECD average of 9%, with 20% of men working very long hours compared with ¡ust 1 0% for women.

Education: In Chile, 71 % of adults aged 25-64 have earned the equivalent of a high-school degree, below the OECD average of 74%. There is little difference Education between men and women, as 72% of men have successfully completed high- 4.0 school compared with 71% of women. In terms of education quality, the average student ¡n Chile scored 439 in reading literacy, maths and science in I the OECD's Programme for International Student Assessment (PISA). This Environment score is lower than the OECD average of 497. On average in Chile, girls outperformed boys by 3 points, less than the average OECD gap of 9 points. i . ' . • . • Health and Environment: In terms of health, Ufe expectancy at birth ¡n Chile is almost 78 years, two years lower than the OECD average of 80 years. Life Cívic engagement expectancy for women is 81 years, compared with 76 for men. The level of 4.4 aímospheric PM10 - tiny air pollutant partióles smal! enough to enter and cause damage to the lungs «is 53 micrograms per cubic meter, considerably I higher than the OECD average of 22 micrograms per cubic meter. Chile could perform better in terms of water quality, as 77% of people say they are Health satisfied with the quality of their water, lower than the OECD average of 84%. 5.7

Community and public engagement: Concerning the public sphere, there is a I modérate sense of community and high levéis of civic participation in Chile, Life Satisfaction where 82% of people believe that they know someone they could rely on in time of need, slightly lower than the OECD average of 90%. Voter turnout, a 5.9 measure of public trust in government and of citizens' participation in the I political process, was 88% during recent elections; higher than the OECD average of 72%. There is little difference in voíing levéis across society; voter Safety íurnout for the top 20% of the population is 90% and for the bottorn 20% it ¡s 5.3 92%, much narrower than the OECD average gap of 12' percentage points. I Life Satísfaction: In general; Chüeans are less satisfied with their Uves than the OECD average, with 77% of people saying they have more positive Work-Life Balance experiences in an average day (feelings of rest, pride in accompüshment, 5.4 enjoyment, etc) than negative ones (paín, worry, sadness, boredom, etc). This figure is lower than the OECD average of 80%. .

~~For more information see: Figure 1: Topic rankings for Chile i irínn\A/oll-hciinnsnflnronrei.c;R htm OECD BETTER LÍFE INDEX PUBLIC PERCEPTIONS OF WELL-BEiNG~~

The Better Life Index is an Interactive tool that enables you to express and share your aspirations for a better Ufe. By rating the 11 topics below you can créate your Better Life Index. The resulting visualisation provides a uníque view of how countries perforen according to the priorities you have set.

11 topics to define weíí-being EachjfloLuer répresents a coimtry and each petal represents a topíc¡ Community OHealth Ufe Housing Educaüon oSatisfaction Income Environment Safety Rate the topics Civic . Work-Life Jobs Engagement Balance according to their importance to you

Since its launch in May 2011, the Better Life Index has attracted over 3.2 million visits from just about every country on the planet (184) and has received over 7.3 million page views. To date, over 52,377 user-created Better Life Indexes have been shared, The baselíne finding is that the 11 topics used to measure well-being —housing, income, Jobs, community, education, environment, governance, health, life satisfaction, safety and work-l'rfe balance, have resonated with users. All topics are consistently included on average by users when creating their indexes and rankings.

~~Ranking of well-being preferences for all users of the Better Life Index 12% 11% 10.29% 10.34% 9.84% 10% 9.46% 8_75% 8.92% 8.96% 9. 9% 8.09% 8% 7% 6.80% 6% 5% 4%~~

Life satisfaction, health and education have consistently been the top rated topics overa».1 Life satisfaction measures how people evalúate their life as a whole rather than their current feelings; Health íakes into account self-reported health (How is your health?) and life expectancy; and Education measures years in education, student skílls and educational attainment.

~~findinns arR hasp.ri nn ííP.377 user indexes collected between Mav 2011 and December2013. PERCEPTIONS OF WELL-BEING: USER FINDINGS FOR CHILE~~

~~Education, Life Satisfacción and Health are the three híghest ranked topícs by users ¡n Chile. This is based on 406 indexes received from Chile-based users.1~~

~~Average weights assigned to each dimensión Comparison between ali users and users based in Chile 11%~~

~~i Chile Global~~

Chile is currently 24th in number of visits (over 30,300) to the BLI site, up 75 % since.the update of the Index in May. The top cíties or regions in number of visits are Santiago, Valparaíso and Concepción. In une wiíh the global average for ai I users, most users based in Chile are aged 25-34 and male.

~~Age breakdown for ali users Gender breakdown for ali users 16,000 14,000 12,000 10,000 8,000 6,000 a women 4,000 2,000 n men . O JOL~~

~~Age breakdown for users in Chile Gender breakdown for users in Chile~~

~~u Women n n ;: n n „ <15 15-2425-3435-4445-5455-64 >65~~

Out of 43,765 user indexes collected between May 2011 and July 2013. User feedback is not necessarily SEN. LAURA ANGÉLICA ROJAS HERNÁNDEZ PRESIDENTA DE LA COMISIÓN DE RELACIONES EXTERIORES ORGANISMOS INTERNACIONALES

~~PASEO DE LA REFORMA No. 135 HEMICICLO NIVEL OS, OFICINA 29 COL/TABACALERA DELEGACIÓN CUAUHTÉMOC C.K 06030 MÉXICO, D.F. \OEGD | FORUM ¡ \2014l Save the date: 5-6 May 2014~~

~~OECD i Créate Your Better Life Bette-i r Life Index at: Initiative wwwjoecdbetterlifeindex.org OECD Better Life Initiative Chile~~

~~OECD Better Life Initiative~~

~~For questions and more Information contact L. Lorena Sánchez Tel: 33 (0) 1 45 24 79 91 [email protected]~~