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This paper assesses good practices and lessons learned in investment promotion in European Union (EU) Member States. It focuses on two specific areas of investment promotion: state aid for regional development under EU law and special economic zone frameworks. It provides an overview of the concept of state aid and compatibility of regional aid with the internal market, as well as lessons learned from the case law determining the existence of state aid in regional development measures. It also outlines the calculation of the gross grant equivalent of state aid. The paper explores special economic zone policies, identifies success factors and describes the complementary framework conditions to maximise their spillover effects on local economic development.

A new trend is appearing in government budgets: using the budget process to help transform society and achieve results in relation to cross-cutting government goals, referred to in this paper as “transformational agendas”, often seeking to overcome persistent economic, social or environmental issues, which require action from across different policy areas. Transformational budgeting is a holistic approach to budgeting that helps align disparate activities with central goals, or agendas. The paper reviews how budget processes have evolved in modern public finance, with a view to enhancing the efficient and effective use of inputs to deliver results. It presents the emergence of transformational budgeting as a tool to help transform societies in response to new global agendas, such as the SDGs. The paper showcases transformational budgeting in practice, drawing on experiences from Spain.

The importance of experienced teachers cannot be underestimated. They can help raise the performance of students

and improve the overall quality of schooling by supporting less-experienced colleagues. This Teaching in Focus: Where to find experienced teachers? analyses the distribution of teachers across schools from two different but complementary angles: equality and equity.

French

The 2021 OECD Survey on Drivers of Trust in Public Institutions provides a cross-country assessment of what influences people’s trust in government and public institutions, understanding people’s perception of the functioning of democratic institutions. Most of the drivers in the Trust Survey refer to government competences and values that help countries take concrete steps to rebuild trust. Both at the individual and country-level trust may vary due to cultural, economic and social factors. This paper analyses the open-ended survey responses in 16 OECD countries to understand two questions. First can the answers provide insights into cultural differences and extreme attitudes of distrust? Second, what dimensions influence trust that are not considered in the theoretical OECD Trust Framework underpinning the Trust Survey? The results of the topic model resemble closely the drivers in the Trust Framework, but respondents name not just government inputs, outputs, and processes, but also socioeconomic vulnerabilities, intergenerational and global challenges. While many respondents write that ''corruption'', ''money'' and ''power'' drives their trust in public institutions, these feelings are not associated with government transparency and accountability. These findings show the advantage of qualitative measurements (open-ended survey questions) to understand the complex relationship between trust and public governance.

The housing sector is one of the main sources of CO2 emissions in OECD countries, accounting for over a quarter of the total. Robust and rapid action is required to reach the net zero emission target by 2050. Decarbonising housing involves halting the use of fossil fuels in homes, ensuring that electricity is generated from carbon-free sources, using high-energy-efficiency appliances and heating systems, ensuring effective insulation and encouraging behavioural changes. This paper discusses which policy instruments can prompt this transformation of the housing sector, ranging from carbon pricing through energy labelling requirements to green housing finance.

This report quantifies the environmental, health and economic consequences of policy action on air pollution in Arctic Council countries, with a focus on sectoral differences. The report takes a modelling approach and compares a baseline scenario that reflects current legislation, with a policy scenario in which the best available techniques to reduce emissions are deployed in all emitting sectors. The report highlights that benefits from air quality improvements can be obtained when considering emission reductions throughout the economy, and not just in the sectors that are targeted more often, such as industry and transport. The results presented in the report also highlight the need for country-specific policy strategies that take into account the current levels of policy stringency, the sectoral contributions to air pollution, and the need for sectoral investment in new technologies, which also vary by country.

Digital markets have raised a number of new competition challenges. Ex-post competition policy appears not to be able to address them in their entirety and with the necessary speed. There is considerable consensus, among academics and policy-makers, that ex-ante regulatory policies are needed to avoid competition being stifled in these markets, with a negative impact on productivity and innovation. As a result, major OECD economies are discussing or have approved regulatory proposals with the aim to foster contestability and fair trade in digital markets.

This paper builds on the results of the OECD Trust Survey in Portugal to identify the main areas for improvement and guidelines for action to help Portugal reinforce trust and democracy and enhance public governance to address future challenges. The Portuguese government’s response to the COVID-19 crisis drew on lessons learned from previous crises, notably the plunge in public trust after the 2008 financial crisis and the subsequent economic austerity measures which shook the political system and considerably impacted economic and social well-being. Public trust has traditionally been heralded as crucial for public governance. However, to build resilience in the face of multiple social, economic and environmental crises, Portugal will need to set public trust as an explicit policy objective and better understand what drives it. Investments in building a competent and trusted civil service will also be needed to develop more responsive and better-informed policy responses.

Building on many data sources and country examples on women’s employment in the social and solidarity economy (SSE) the report: i) analyses women’s employment in the SSE, ii) explores challenges to gender equality in the SSE and, iii) provides policy recommendations to recognise women’s work and leadership in the SSE and in the wider economy. It also suggests ways to foster their participation in high-growth sectors within the SSE, such as technology-intensive and green sectors.

Micro-credentials are increasingly prominent in discussions around education, training and labour market policy. Policymakers, educators and trainers across the world envision micro-credentials to be an innovation with a multitude of potential uses and benefits – a sort of all-purpose solution for the problems confronting education, training and labour market systems – and some have begun to integrate them into existing practice and policy frameworks. However, evidence on the value and impact of micro-credentials remains scarce, limiting commitment on the part of stakeholders. This paper examines what is known about both the potential and limitations of micro-credentials with respect to enhancing learners’ labour market participation and outcomes, widening pathways from upper secondary to higher education, improving completion of higher education, and promoting social inclusion among disadvantaged learners.

Schools are perfect hubs for social and emotional learning, but are they ready for this task? To address this question, this Spotlight reports previously unpublished findings from the OECD’s Survey on Social and Emotional Skills (SSES) and discusses their implications for education policy and practice. Both an active promotion in schools and extensive learning opportunities for teachers on relevant topics provide a fertile ground for an effective social and emotional education. They boost teachers’ self-efficacy and use of active learning pedagogies, as well as quality relationships at school. The Spotlight also points to important differences for teachers of 10- vs. 15-year-old students that can explain higher skills at a younger age. Younger students benefit more often from key elements of an effective social and emotional education in school, i.e. the evaluation of their social and emotional skills and teachers teaming up with parents to reinforce skill promotion. Teachers of 10-year-olds are also more intensively trained and requested to promote social and emotional learning in their work.

The "OECD Financing SMEs and Entrepreneurs Scoreboard: 2023 Highlights" document SME and entrepreneurship financing trends, conditions and policy developments. The report provides official data on SME financing in close to 50 countries, including indicators on debt, equity, asset-based finance and financing conditions. Data for 2021 are complemented by available information for 2022, along with demand-side information and recent developments in public policy and private initiatives to support SME finance.

Findings reveal that most economies showed the beginnings of a dynamic recovery from the COVID-19 crisis in 2021. However, data available for 2022 point to a deterioration in a number of SME finance indicators, due to high inflation and rising interest rates, exacerbated by the effects of Russia's war against Ukraine. These factors are impacting the accessibility and cost of debt finance for SMEs, and foreshadow a slowdown in lending. Likewise, equity finance showed a significant decline in 2022. In this context, governments should continue to foster the diversification of SME financing instruments and channels to enable them to build resilience and undertake crucial investments, such as those in digitalisation and greening.

French

Legislatures’ “power of the purse”, the ability to tax and spend public money, is enshrined in constitutions worldwide as a cornerstone of legislative power in democratic countries. Their role across the budget cycle is a fundamentally important national concern, lying at the heart of issues such as transparency, inclusiveness and democratic accountability. Despite different historical, constitutional, and political contexts, common features for parliaments to play an effective role in budgeting have emerged from experiences across OECD countries.

The provision of key health technologies and products such as vaccines and antibiotics is insufficient in purely competitive and volume-based markets, requiring new revenue streams for sustainability. Recent developments in health innovation suggest that innovative collaborative mechanisms can be effective in addressing this issue. In the domains of vaccines and antibiotics, these approaches should incorporate shared research investment, long-term access planning, the provision of manufacturing infrastructure, supply chains, and financial returns. Collaborative approaches such as subscription models could be piloted at the regional level, while other models could be developed to delink innovation, manufacturing, and access from sales volume and revenue. Finally, blended finance instruments from the development field could encourage greater collaboration among established and emerging stakeholders in health innovation. These stakeholders should work together to create, test, access, and implement more collaborative approaches to health innovation to share upfront investments, mitigate risks of failure, and accelerate market access.

The COVID 19 pandemic has disproportionately hit some vulnerable population groups. Those living in deprived areas, migrant population, and ethnic minorities are at higher risk of catching and dying from the virus than other groups, and they also face significant indirect health impacts of the COVID-19 pandemic - both mental health impacts and disruption of routine care. The working paper gathers evidence on the direct and indirect health impacts of the COVID-19 on the poor population and the ethnic minorities. It reviews factors underlying these inequalities, and maps policy interventions adopted by OECD countries to help address the disproportionate impacts of the COVID-19 pandemic on vulnerable population groups.

This report examines privacy-enhancing technologies (PETs), which are digital solutions that allow information to be collected, processed, analysed, and shared while protecting data confidentiality and privacy. The report reviews recent technological advancements and evaluates the effectiveness of different types of PETs, as well as the challenges and opportunities they present. It also outlines current regulatory and policy approaches to PETs to help privacy enforcement authorities and policy makers better understand how they can be used to enhance privacy and data protection, and to improve overall data governance.

Ce document présente les bonnes pratiques en matière de budgétisation sensible au genre dans les pays de l'OCDE, qui regroupent les éléments essentiels communs nécessaires à une mise en œuvre réussie d’une budgétisation sensible au genre. Ces bonnes pratiques identifient les éléments qui contribuent à la durabilité de la budgétisation sensible au genre et aident les gouvernements à s'assurer que le budget participe à la réalisation d'objectifs plus larges liés à l'égalité des genres, tels que la participation des femmes au marché du travail. Les bonnes pratiques s'inspirent des pratiques de budgétisation sensible au genre dans les pays membres de l’OCDE ainsi que des travaux menés avec les pays pour la conception et la mise en œuvre de la budgétisation sensible au genre.

English

This paper provides good-practice guidelines for parliamentary budget officials and independent fiscal institutions (IFIs) that estimate the costs of policy proposals. It covers topics including which costs to capture, how to handle behavioural responses and macroeconomic feedback, how to communicate results, and how to work with stakeholders. It also contains a section on the special considerations for costing election platforms.

This paper presents best practices for gender budgeting in OECD countries, consisting of the core features common to successful implementation of gender budgeting. These best practices identify elements that contribute to the sustainability of gender budgeting and help governments ensure that the budget helps achieve broader government objectives relating to gender equality, such as women’s participation in the labour market. The best practices draw on gender budgeting practices in Member countries and the OECD’s work with countries in designing and implementing gender budgeting.

French

This report takes stock of scientific findings to date regarding the distributional effects of policies discouraging car use in urban areas. These policies include cordon tolls, distance-based charges, fuel taxes, parking measures and public transport subsidies. The report describes the mechanisms responsible for the distributional effects of these policies and offers insights regarding how such policies can be designed to minimise adverse equity outcomes. It also provides recommendations regarding the design and procedural modifications that standard instruments require in order to be more acceptable to the public and to governments. Finally, it identifies a number of issues that warrant further research in the pursuit of greater equity in the outcomes of urban road transport policies.

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