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701. Economic Survey of Japan, 2003

Publication Date:
12-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The current economic upturn does not diminish the urgency of continuing with fundamental reforms to lay the foundation for a robust and sustainable expansion strong enough to reverse the downward trend in Japanese living standards relative to other OECD countries and to restore price stability after nearly eight years of deflation. Given the negative implications of falling prices, the Bank of Japan should strengthen its quantitative easing policy by further expanding the range of assets it purchases. In addition, the effectiveness of monetary policy depends critically on resolving the problems in the banking and corporate sectors. The authorities should follow through on the objective of substantially reducing non-performing loans and revitalising the corporate sector, while ensuring that banks are adequately capitalised, using public money if necessary. Moreover, it is important to scale back the role of government financial institutions. Given the likely negative impact of accelerated bank and corporate-sector restructuring on activity and the need to ensure that the recovery is not ended prematurely, excessive fiscal policy tightening should be avoided, while any increase in revenue due to buoyant activity should be used to reduce the deficit. Achieving the moderate fiscal consolidation projected for 2004 is a key to building confidence in the longer-term sustainability of public finances, which also requires a credible consolidation plan for 2005 and the years beyond, including measures to limit spending and boost tax revenues. Moreover, it is essential to prevent increases in spending as a share of GDP, an objective that requires reform of pension and health care pro- grammes in the face of rapid population ageing. Given the constraints on macroeconomic policy, a successful programme to revitalise the economy will require a broad programme of structural reform, focused on strengthening competition to boost consumer welfare and improve the allocation of resources. To achieve such an outcome, competition policy should be improved by making the Fair Trade Commission stronger and more effective and by creating a framework conducive to competition in network industries that have been liberalised, such as telecommunications and energy. Expanded international trade, greater inflows of direct investment and removal of outdated regulations - accelerated through the recently created special zones - also have important roles to play in boosting competition. In sum, a broad-ranging programme of carefully designed macroeconomic policies and far-reaching structural reforms to enhance Japan's growth potential is needed.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Japan

702. Fighting Bribery in International Business Deals

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Bribing public officials to obtain international business raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

703. Integrating Information and Communication Technologies in Development Programmes

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Information and communication technologies (ICTs) can play a key role in development and poverty reduction. ICTs can help promote economic growth, expand economic and social opportunity, make institutions and markets more efficient and responsive, and make it easier for the poor to obtain access to resources and services. It can also make it easier to make the voices of the poor heard in the decisions that shape their lives.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

704. Economic Survey of Chile, 2003

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
A stable institutional framework in Chile has provided the foundations for growth and confidence of international markets. While a comprehensive social agenda is putting pressure on resources under the recent economic slow-down, the Chilean government should be praised for having maintained a sound fiscal and monetary stance and building on its unique institutional framework based on the freedom of choice. The current challenges are to strengthen the coherence of this development policy agenda with a vision to long-term growth and broader social consensus. Chile is a small open economy, for which international competitiveness is the cornerstone for sustainable growth. The latter is the outcome of the multiple policy synergies discussed above. The first important link is to continue preserving a sound macroeconomic framework avoiding distortions that may produce excessive real exchange rate appreciation, which could hinder the incentives to invest and expand employment in the tradable sector. The deepening of financial intermediation and development of risk capital are needed to support the emergence of new and more innovative firms. A better functioning of the labour market is critical to the development of the enterprise sector. In particular increased female labour participation would support the development of light industries and services. Investment in human capital, in particular education and workers' training, is needed to develop products with a higher technological content. The administrative conditions and regulation of product markets should also be improved, notably by reducing administrative barriers to enterprise creation and removing distortions in the tax treatment of cross-border interenterprise financial flows. These policy link-ages would help increase product variety and intra-industry trade that could contribute to reduce the vulnerabilities associated with an excessive reliance on natural resources and export concentration. In all these areas of reform, Chile is now in a position to emulate and converge towards the more advanced benchmark of OECD countries.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Chile

705. Policy coherence: Vital for global development

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Trade and investment, coupled with transfers of knowledge and technology and an appropriate institutional framework, have been major engines of global economic growth in developed and developing countries over the past 50 years. From the mid-1980s, the pace of global economic integration and growth accelerated significantly. Sustaining global economic growth and achieving a better sharing of its benefits will further the interests of all countries, developing and developed alike. Recognising this, the international community has committed itself to specific Millennium Development Goals and to ways of achieving them.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

706. Economic Survey of Mexico, 2003

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Fiscal rectitude, progress towards macroeconomic stabilisation, and past structural reforms have been necessary and desirable, but have not yet been sufficient to raise potential growth to rates that would allow closing the gap in living standards with other OECD countries. Prolonged cyclical weakness, with no unambiguous signs yet of a vigorous upturn, has depressed private investment, which is also hampered by legal and regulatory obstacles in key sectors, electricity in particular. Mexico's catching-up is further hindered by low human capital accumulation. The administration has insufficiently solid and stable revenue to finance necessary social spending and public infrastructure investment on the required scale. Policies should therefore give priority to broadening the tax base and creating conditions - economic, financial and legal - in which a competitive private sector has the ability and incentives to invest more. It is also important to spend more productively in areas such as education; efforts there should concentrate on making the existing school system, and the teaching body, more effective, and on allocating more resources to the training of adults. Although the large informal sector provides a kind of safety valve for many of the low-skilled, the formal sector must become a more attractive place in the longer term in which to work and to employ. Emigration also provides a safety valve, and remittances lift many households out of acute poverty. A migration agreement between the United States and Mexico would bring benefits to both. Levels of water and air pollution are unacceptably high in Mexican urban areas, and though policies are addressing this, the (implicit or explicit) pricing of natural resources and of polluting activities is far from optimal. Overall, Mexico needs to move ahead with comprehensive structural reforms, including most immediately approval of the tax, electricity and labour reforms, so as to fully release the country's growth potential and provide resources to deal with important issues of human capital and poverty relief.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Mexico

707. The Economic Consequences of Violent Conflict in West Africa

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Violent conflict undoubtedly affects West Africa's prospects for economic development and integration. However, the nature of these effects is still poorly understood. As part of the SWAC regional programme on conflict and stability, the SWAC Secretariat undertook a literature review and an electronic consultation of southern and northern agencies and specialists in summer 2003. This aimed to assess the economic consequences of violent conflict at multiple levels; identify operational lessons on how best to deal with these effects; and highlight key areas for further work where the SWAC can add value. The core findings of the review are presented in this note.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
West Africa

708. Poverty and Health in Developing Countries: Key Actions

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Health is higher on the international agenda than ever before and improving the health of poor people is a central issue in development. Poor people suffer worse health and die younger. They have higher than average child and maternal mortality, higher levels of disease, and more limited access to healthcare and social protection. But health is also a crucially important economic asset, particularly for poor people. Their livelihoods depend on it. When poor people become ill or injured, their entire household can become trapped in a downward spiral of lost income and high healthcare costs.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

709. Economic Survey of Austria, 2003

Publication Date:
10-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
To raise Austria's growth potential, significant changes in the institutional set-up will be necessary in order to achieve sound public finances, higher labour force participation - in particular among older workers - and to open up the sheltered sectors of the economy to healthy competition. Although the government's emphasis on structural spending reductions to achieve eventual budget balance while also creating room for tax cuts is appropriate, earlier fiscal easing means that under current plans budget balance will be restored only after 2007. Such a deficit path is not appropriate given Austria's high debt-to-GDP ratio. Stronger spending restraint will be necessary in order to create room for the major tax reform that the authorities are committed to. Public expenditure reform is focused on reducing public sector employment, but the cost savings are eroded by the generous early retirement programmes used to achieve these employment reductions. Comprehensive public sector reform has to address the complicated -federal fiscal relationships and make sure that tasks are allocated to the most appropriate private or public agent. More cost-benefit analysis and output performance budgeting would help to improve the efficiency with which public resources are used. The pension reform undertaken by the government marks considerable progress in moving to sustainable old-age income replacement through measures designed to increase further the labour force participation rate of older workers and women and lengthen working lives considerably. Further necessary action includes measures to improve the employability of older workers, in particular the elimination of excessive seniority wage components, and a more stringent revision of the remaining age-specific employment protection regulation. The large differences in economic performance between manufacturing, which is fully exposed to international competition, and services points to considerable scope for increasing competition by reducing entry barriers and facilitating the operations of the newly established competition authority. Proceeding along these lines will help Austria to realise the positive potential associated with Eastern enlargement while at the same time becoming more resilient to adverse supply side shocks.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Austria

710. MAgricultural Policies in OECD Countries: A Positive Reform Agenda

Publication Date:
06-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
OECD countries have recently agreed to a positive reform agenda for agricultural policies. Central to this agenda is the need to set out clearly the objectives of agricultural policies, and to monitor the performance of alternative policies in attaining them. In most cases, the best way to achieve an objective is to target it directly. Thus, where agriculture is deemed to provide public services, such as a pleasing countryside or environmental benefits, any required support for those services could be provided directly, rather than through policies that stimulate output. Conversely, environmental degradation could be taxed or regulated at source. Where agricultural households have low incomes, there may be a case for policies that concentrate benefits among poorer households, as opposed to blanket support measures that pay more to larger (and typically wealthier) farmers and to landowners. Reform along these lines would improve the cost-effectiveness of government programmes, and would greatly reduce disruptions to international markets. At the same time, not everyone will gain from reform, at least in the short term. There may therefore be a need for temporary adjustment assistance for farm households that are negatively affected. The broader opportunities to improve economic well-being call for policies that respond explicitly to a more diverse range of societal interests.
Topic:
Agriculture, Economics, Environment, and International Trade and Finance

711. Public-Private Partnerships in the Urban Water Sector

Publication Date:
04-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The urban water sector presents difficult economic and political choices for governments. The provision of water and sanitation services has undoubtedly reduced disease and yielded other health benefits. Free or cheap access to water has also spurred a variety of other uses from maintaining lawns to washing cars. At the same time, this sector is plagued by a long history of under-pricing, and opposition to full cost pricing for ethical and social reasons. These factors have contributed to the unwillingness of many governments to acknowledge water as a finite natural resource and an economic good – a commodity that needs a market price reflecting the cost of provision and its true value to society.
Topic:
Agriculture, Economics, Government, and Industrial Policy

712. Improving Water Management: Recent OECD Experience Water management - a serious challenge for sustainable development

Publication Date:
03-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
There is widespread concern that poor water management will be one of the major factors limiting sustainable development during the next few decades. Water shortages are common in many regions, and are exacerbated by the pollution or degradation of many water bodies. There are conflicting demands for available water resources, both between human, economic, and ecosystem needs and between regions sharing a single water basin, in some cases leading to geopolitical security threats. World population roughly doubled over the last 50 years, while water consumption worldwide quadrupled. With urban populations growing faster than rural populations, the financial pressures on urban water utilities are intensifying.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

713. The Contested Governance of GM Foods: Implications for U.S.-EU Trade and the Developing World

Author:
Robert L. Paarlberg
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Genetically modified (GM) foods are widely produced in the United States and in two other Western Hemisphere countries (Argentina and Canada) but almost nowhere else. In most other wealthy industrial countries, including Europe and Japan, it is legal for farmers to plant these crops, but they voluntarily refrain from doing so because consumers are averse to eating GM. In most developing countries it is not yet legal for farmers to grow GM foods, on biological safety grounds. Yet biosafety is not the real issue. Poor countries are now trying to stay “GM-free” so as to retain the option of exporting food to Europe and Japan. New regulations in the EU on the labeling and traceability of imported GM foods and feeds will only increase the potential cost to exporters of planting GM seeds. The United States has considered challenging EU regulations as illegal under the WTO, and a serious trade conflict now looms. The EU, not the United States, is better positioned to prevail in this conflict. In international food markets, safety and labeling standards tend to be set by big importers rather than big exporters.
Topic:
Agriculture, Markets, Food, European Union, Farming, and Genetic Modification (GM)
Political Geography:
Canada, Argentina, United States of America, and North America

714. Central Asia: Water and Conflict

Publication Date:
05-2002
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Competition for water is increasing in Central Asia at an alarming rate, adding tension to what is already an uneasy region. Agriculture is the mainstay of the region's economy, and thirsty crops such as cotton and rice require intensive irrigation. Water use has increased rapidly since the Central Asian states became independent in 1991 and is now at an unsustainable level. Irrigation systems have decayed so severely that half of all water never reaches crops, and several years of drought have cut available water by a fifth even as demand continues to soar. Efforts to rebuild Afghanistan will now put yet more strain on supplies.
Topic:
Agriculture, Development, and Environment
Political Geography:
Afghanistan and Central Asia

715. Well-Rooted? Land Tenure and the Challenges of Globalization

Author:
Michelle Vosburgh
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Institute on Globalization and the Human Condition, McMaster University
Abstract:
There is increasing pressure in the developing world to implement reforms that will facilitate more efficient land use and capital investment through the use of Western-style surveys, ownership and title registration. Proponents of traditional land systems have opposed these Western reforms by arguing for land's cultural and social importance. This article is a historical exploration of this issue within the context of contemporary globalization. The changing attitudes towards land tenure practices are traced through an examination of the published materials of the United Nations, its agencies and member nations. Historic and contemporary examples illustrate the difficulties of preserving traditional land systems in the face of economic and political integration.
Topic:
Agriculture, Economics, Globalization, and Political Economy

716. On the Choice of Appropriate Development Strategy: Insights from CGE Modelling of the Mozambican Economy

Author:
Finn Tarp and Tarp Jensen Henning
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper makes use of a 1997 computable general equilibrium (CGE) model to analyse three potential strategies that Mozambique can pursue unilaterally with a view to initiating a sustainable development process. They include (i) an agriculture-first strategy, (ii) an agricultural-development led industrialization (ADLI) strategy, and (iii) a primary-sector export-oriented strategy. The ADLI strategy dominates the other development strategies since important synergy effects in aggregate welfare arise from including key agro-industry sectors into the agriculture-first development strategy. Moreover, the ADLI strategy can be designed so it has a relatively strong impact on the welfare of the poorest poverty-stricken households, and still maintain the politically sensitive factorial distribution of income.
Topic:
Agriculture, Development, and Human Welfare
Political Geography:
Africa

717. The Defense Monitor: Population Growth and Water Resources in the Middle East

Author:
Rachel Stohl, Christopher Hellman, Tomas Valasek, Leigh Josey, and Nicholas Berry
Publication Date:
09-2001
Content Type:
Policy Brief
Institution:
Center for Defense Information
Abstract:
Political strife is nothing new in the Middle East. In fact, many of the present-day disputes date back 100 years or more. But the increasing scarcity of renewable water resources and the simultaneous high population growth add new urgency to the necessity to devise a settlement.
Topic:
International Relations, Agriculture, Demographics, and Environment
Political Geography:
United States and Middle East

718. Agriculture in a Global Perspective

Author:
Jonathan Harris
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Global Development and Environment Institute at Tufts University
Abstract:
In the twenty-first century, it is evident that world agricultural systems will have to supply sufficient food for a population somewhere between 7.5 and 12 billion. Projections for world agriculture in the first half of the twenty-first century very widely, largely depending on assumptions about yield growth. An investigation of the patterns of yield growth for major cereal crops offers evidence that the pattern is logistic, implying that an upper limit to yields is being approached. This pattern is consistent with ecological limits on soil fertility, water availability, and nutrient uptake. It is also evident that current agricultural production is imposing serious strains on ecosystems, with widespread soil degradation, water overdraft and pollution, and ecological impacts such as loss of biodiversity and the proliferation of resistant pest species.
Topic:
Agriculture, Development, Economics, and Environment

719. Community Control in a Global Economy: Lessons from Mexico's Economic Integration Process

Author:
Eliza Waters and Tim Wise
Publication Date:
02-2001
Content Type:
Working Paper
Institution:
Global Development and Environment Institute at Tufts University
Abstract:
The North American Free Trade Agreement appeared to promise economic growth for Mexico and improved living conditions for its people. While the Mexican economy has recovered significantly from its post-NAFTA collapse, there is mounting evidence that many of the pre-NAFTA warnings of worsening poverty and deteriorating environmental conditions were true, if exaggerated. However one interprets the statistics, there is little doubt that the economic integration process, which began a full decade before NAFTA took effect, has created a significant restructuring of the Mexican economy, with some of the country's most vulnerable residents facing the harshest conditions.
Topic:
Agriculture, Economics, Globalization, International Trade and Finance, and Political Economy
Political Geography:
North America

720. Agricultural Biotechnology's Complementary Intellectual Assets

Author:
Gregory D. Graff, Gordon C. Rausser, and Arthur A. Small
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
We formulate and test a hypothesis for the dramatic restructuring that the plant breeding and seed industry has recently undergone: the reorganization can be explained in part by the desire to exploit complementarities between intellectual assets needed to create genetically modified organisms. This hypothesis is tested using data on agricultural biotechnology patents, notices for field tests of genetically modified organisms, and firm characteristics. The presence of complementarities is identified with a positive covariance in the unexplained variation of asset holdings. Results indicate that coordination of complementary assets have increased under the consolidation of the industry.
Topic:
Agriculture, Industrial Policy, and Science and Technology