What's happening at the OECD

Ministers to Discuss Environment and Global Competitiveness

from 28-Apr-2008 to 29-Apr-2008

Environment Ministers from OECD countries as well as from Chile, Estonia, Israel, Russia, Slovenia – countries that are candidates for OECD membership – and Brazil, China, India, Indonesia and South Africa have been invited to discuss cost-effective environmental policies that also bring economic and social benefits.

OECD ministers to discuss climate change, trade and global economy at annual meeting, Paris, 4-5 June 2008 from 04-Jun-2008 to 05-Jun-2008 The economic impact of climate change, rising food prices and a broad range of other trade, growth and development issues will be discussed at the OECD’s annual ministerial meeting in Paris on 4-5 June 2008. France, represented by Christine Lagarde, Minister for the Economy, Industry and Employment, will chair the meeting, with Mexico and Switzerland as Vice-Chairs.

Official visit of the Secretary-General to Sweden from 22-Apr-2008 to 23-Apr-2008 During his official visit, Angel Gurría met with Swedish government officials and gave a lecture at Stockholm School of Economics on "Tax and Growth: What direction should Sweden take?".

More flexibility in labour market policy management would boost growth, says OECD 21-Apr-2008 OECD governments could boost economic growth and help create jobs if local agencies and authorities had more power and autonomy to adjust employment and training programmes to meet local needs, concluded OECD employment ministers.

OECD Financial Markets Committee calls for fundamental reform of financial markets 15-Apr-2008 Fundamental reform of the financial system and its regulation is needed to address the issues highlighted by the current financial markets crisis, according to the OECD Financial Markets Committee. Priority should be given to private sector initiatives to speed up the recovery of financial markets but government intervention may be needed.

Klaus Schmidt-Hebbel appointed OECD Chief Economist 15-Apr-2008 Klaus Schmidt-Hebbel has been appointed Chief Economist of OECD. A national of both Germany and Chile, he joins OECD after twelve years as Chief of Economic Research at the Central Bank of Chile.

OECD countries stay open to commercial investments by sovereign wealth funds

09-Apr-2008

OECD countries are committed to keeping their investment frontiers open to sovereign wealth funds (SWFs) as long as these funds invest for commercial, not political ends. That is the message in a letter from OECD Secretary-General Angel Gurría to G7 Finance Ministers detailing a common OECD position on policies towards sovereign wealth funds.

The Australian Election: A Hollow Victory?

Crosspost from:

The Progressive Economics Forum

Although my knowledge of Australia’s politics is limited, they always interest me. Not only is the country similar to Canada in many ways, but it also had among the most successful labour movements and Labor Parties in the English-speaking world. (The party changed its name from “Labour” to “Labor” in 1912, when it seemed that Australia would adopt American spelling.)

Things went off the rails in the 1980s and early 1990s, when the Labor governments of Bob Hawke and Paul Keating introduced massive privatization and deregulation. Since then, John Howard’s Liberal government has combined free-market economics with conservative social policy. (Howard’s son and I both survived the notorious 2001 World Universities Debating Championships.)

While today’s Labor victory is welcome news, there are serious questions about how progressive the new government will be. Yesterday’s Globe and Mail included the following commentary from the right-wing Hudson Institute:

. . . most political signs point to a victory for Labor Leader Kevin Rudd, a Mandarin-speaking former diplomat and a pro-American moderate in the mould of Tony Blair. He and his party have enjoyed a lead of about 10 per cent in the polls for most of 2007.

If Mr. Rudd is victorious, however, it will be a victory for continuity almost as much as for change. Australia’s consistent course of economic deregulation and free trade actually began two decades ago under Paul Keating’s Labor government.

. . .

There was already little to separate Mr. Howard from Mr. Rudd on economic policy. And Labor’s pledge to reduce Australia’s military presence in Iraq is so gradual it sounds like a pledge to remain.

Jim has made similar points regarding Labor’s stand on so-called “free trade” agreements.

Rudd’s statements today have been full of bumf about putting aside “old conflicts” and governing for all Australians. I suppose that those are the sorts of things people say after being elected, but they do not inspire much confidence.

I note that Rudd’s economic platform includes tax cuts. Although he considers himself fiscally conservative, his election pledge is only to “keep the Budget in surplus on average over the economic cycle.” This commitment allows the government far more flexibility than the Canadian expectation of no deficits, ever, under any circumstances. Indeed, one could pursue a strongly counter-cyclical fiscal policy and still end up with a surplus on average.

Prior to the election, Howard had tried to significantly rollback collective bargaining through WorkChoices. Rudd has promised to undo most of this program, but not to restore Australia’s former system of centralized industrial awards. He will also sign the Kyoto Protocol.

Rudd is undoubtedly better (or less bad) than Howard, but seems unlikely to implement much of a social democratic agenda. I welcome comments from people who know more about Australian politics.