European banking’s New Year resolution Why EU-US trade talks matter Passive housing saves money Nelson Mandela: Personal reflections The Kennedy connection No 297 Q4 2013 www.oecdobserver.org

PISA lessons Why Asia is smiling ©Jo Yong-hak/ ©Jo

CONTENTS No 297 Q4 2013

READERS’ VIEWS Science and technology 2 Nigerian giant; Environmental concerns; 28 Less is more: Emerging economies as End poverty? innovators Editorial ENERGY AND THE ENVIRONMENT 3 For a resilient, inclusive and greener future 31 Gas-propelled competitiveness Angel Gurría, Secretary-General of the OECD Fatih Birol, Chief Economist, International Energy Agency News Brief 33 In deep: Brazilian oil 34 The active advantages of passive housing EU-US trade talks Page 12 4 Brake on health spending–; –as tax Brian McGarry, Economics Lecturer, revenues rise; Soundbites; Economy; Country la Salle-Ramon Llull University, Barcelona, Spain round-up; Trust deficit; Well-being worry; 36 Price the carbon! Trade breakthrough; Plus ça change Development Economy: The year ahead 38 Latin America’s challenge 7 Ireland leaves the EU/IMF programme Christian Daude Eamon Gilmore, Táinaiste (Deputy Prime 40 President Nelson Mandela: Some personal Minister), Ireland reflections 8 Is Greece at a turning point? Ian Goldin, Professor of Globalisation and Ania Thiemann Development, University of Oxford 9 OECD Economic Outlook French education minister and PISA Page 19 10 The automotive sector: Steering beyond OECD.ORG the crisis 42 John F Kennedy: Tribute Caroline Klein and Isabell Koske 43 Recent speeches by Angel Gurría 12 EU-US trade and investment talks: 44 Calendar; Frankie.org Why they matter Ken Ash BOOKS 14 Banking reform: A New Year’s resolution 45 Caring for cancer Gert Wehringer 45 Taxing carbon in British Columbia 16 Tax: Addressing the hybrids 46-50 New publications on OECD iLibrary 17 Tourism’s changing profile 51 Growing green agriculture Tax hybrids Page 16 EDUCA TION: PISA ORDER FORM… ORDER FORM 19 and PISA: Spurring reform? 52 Print is not dead yet Interview with Vincent Peillon, Minister for Chandi Perrera, CEO, Typéfi Education, France 20 Class progress DATABANK 21 Some country snapshots; Overall trends 53 More gloom on the horizon 22 PISA’s hard lessons, Andreas Schleicher 53 Does school pay? 23 Creative minds 54 Main economic indicators Richard Venturi, Economics Teacher, 56 A modern killer Conservatoire National des Arts et Métiers, Paris 24 Which car? A test from PISA 2012 56 OECD Observer Crossword Kennedy and the OECD Page 42

Published in English and French by the OECD All signed articles and letters express the opinions of the EDITOR-IN-CHIEF: Rory J. Clarke authors and do not necessarily represent the opinion of SENIOR EDITOR: Ricardo Tejada the OECD. www.oecdobserver.org EDITOR/WEB: Loïc Verdier © OECD December 2013 Reprinted and translated articles should carry the credit line PLANNING AND DEVELOPMENT EDITOR: Diana Klein “Reprinted from the OECD Observer”, plus date of issue. Signed WRITER: Lyndon Thompson articles reprinted must bear the author’s name. Two voucher ISSN 0029-7054 EDITORIAL ASSISTANTS: Leslie Diamond, Impreet Natt copies should be sent to the Editor. All correspondence should Tel.: +33 (0) 1 45 24 80 70 LAYOUT: Design Factory, Ireland be addressed to the Editor. The Organisation cannot be respon- Fax: +33 (0) 1 45 24 82 10 ILLUSTRATIONS: André Faber, Charlotte Moreau, sible for returning unsolicited manuscripts. [email protected] David Rooney, Stik PHOTO RESEARCH: Rory J. Clarke The statistical data for Israel are supplied by and under Founded in 1962. The magazine of the Organisation ADVERTISING MANAGER: Aleksandra Sawicka the responsibility of the relevant Israeli authorities. for Economic Co-operation and Development The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Applications for permission to reproduce or translate all or parts OE