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This paper was prepared for the OECD-IEA Climate Change Expert Group (formerly called the Annex I Expert Group) for the purpose of providing useful and timely input on specific topics relevant to international negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). The papers do not represent the views of the OECD, the IEA, or their member countries, rather they are Secretariat information papers intended to help inform countries as well as the UNFCCC audience on key technical issues in the international climate change negotiations.

This paper analyses the negotiations which will take place with the six Western Balkan countries (Albania, Bosnia & Herzogovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia) and attempts to identify where the major problems are likely to lie. The experience of the fifth enlargement of the European Union to the 12 countries of Central and Eastern Europe is used extensively in this analysis for two reasons: firstly, because the offer made to these countries is likely to be the starting point for the offer to be made to the countries of the Western Balkans; secondly, because the problems which occurred in the negotiations for the fifth enlargement are likely to be the main areas of negotiation with the six countries.

This article addresses the political, social and broader economic context of public finance reforms in Angola, drawing upon historical perspectives of economic development in Africa and the country’s own experience. The article highlights changes in Angolan practices in line with generally accepted public finance principles, and demonstrates how these reforms occurred within a particular political economy and within sets of international financial, economic, trade and political relationships that influenced their design and implementation. The article illustrates how economic structures and governance systems have been directly linked to the platform of natural resources and social relationships in Angola and in the general African context.

The OECD Competition Committee debated environmental regulation and competition in June 2006. This document includes an executive summary and the documents from the meeting. Written contributions were submitted by: Brazil, the Czech Republic, the European Commission, Finland, France, Germany, Japan, Korea, Norway, the Russian Federation, South Africa, Sweden, Switzerland, Türkiye, the United States, Zambia as well as Ms. Perrot (of France). An aide memoire of the discussion is also included.

In this paper the authors describe the outline of an analysis of disruptive technologies presented by Christensen in his book, The Innovator’s Dilemma. They go on to argue that the analysis can be applied to the practice of e-learning as it has been developed in higher education in the United Kingdom, and possibly elsewhere. They suggest that current moves away from fully developed e-learning and towards “blended learning” can be understood in terms of Christensen’s analysis, and that the move may be an indication that large, established organisations have difficulty in adjusting to disruptive technologies. They conclude that much research needs to be done in the area of e-learning, especially small scale studies of how e-learning can be used away from the established culture of formal education. This is an approach to market research that is also contained in Christensen’s analysis. In summary, they argue that Christensen’s analysis offers some important insights into the process of adopting e-learning solutions in higher education, and also suggests some fruitful directions for future research.

French
Educational buildings and grounds can provide a supportive and stimulating environment for the learning process as well as contribute to greater community needs. These issues were addressed at an international conference entitled “Making Space: Architecture and Design for Young Children”. Described here are the importance of outdoor space to learning in New Zealand, presented at the event, and a campus for pupils in Scotland (United Kingdom) visited by conference participants.

Access to outdoor space is seen as essential to New Zealand children’s development. An early childhood education consultant explains how the early childhood curriculum is linked to both indoor and outdoor spaces in line with socio-cultural learning theory.

A new campus in Scotland built to regroup several educational institutions for young children has been successful in uniting different faiths and integrating pupils with special needs. Further information about the conference is available in PEB Exchange no. 57, February 2006.

French

The purpose of this emission scenario document (ESD) is to provide a realistic worst-case emission scenario for chemicals used at recovered paper mills. The general information about the processes and chemicals used is derived from literature data and several reports from the European Union and the United States. The emission estimation methods given in this ESD are based on those developed by the Organization for Economic Cooperation and Development with parameter defaults reflecting Canadian operations.

This ESD on Recovered Paper Mills was developed in 2004 along with two sister documents, an ESD on Kraft Pulp Mills, and an ESD on Non-integrated Paper Mills. Although they were designed as stand alone documents, by their nature they represent different phases of the life cycle of paper products. The ESD on Kraft Pulp Mills represents the production stage when pulp is first produced. The ESD on Non-integrated Paper Mills is representative of the industrial phase of the life cycle, when the pulp is converted to paper and/or board products. This ESD on Recovered Paper Mills is illustrative of the recovery stage, when paper products are recovered, reworked and recycled back into the community.

The purpose of this emission scenario document (ESD) is to provide a realistic worst-case emission scenario for chemicals used at non-integrated paper mills. The general information about the processes and chemicals used is derived from literature data and several reports from the European Union and the United States. The emission estimation methods given in this ESD are based on those developed by the Organization for Economic Cooperation and Development with parameter defaults reflecting Canadian operations.

This ESD on Non-integrated Paper Mills was developed in 2004 along with two sister documents, an ESD on Kraft Pulp Mills, and an ESD on Recovered Paper Mills. Although they were designed as stand alone documents, by their nature they represent different phases of the life cycle of paper products. The ESD on Kraft Pulp Mills represents the production stage when pulp is first produced. This ESD on Nonintegrated Paper Mills is representative of the industrial phase of the life cycle, when the pulp is converted to paper and/or board products. The ESD on Recovered Paper Mills is illustrative of the recovery stage, when paper products are recovered, reworked and recycled back into the community.

This Emission Scenario Document (ESD) addresses active substances for insecticides, acaricides and products to control other arthropods (in the EU, “product type 18”), used in animal housing and manure storage systems. Biocidal products marketed as insecticides are used in many different applications. They may be used in buildings, outdoors, in sewer systems and for veterinary purposes in animal housings Van Dokkum et al., 1998). The emission scenarios of insecticides for manure storage systems and for stables are connected closely to those of veterinary hygiene biocidal products (the EU “product type 3”). For this product type and for veterinary medicinal products, several reports have been published already (Montfoort et al., 1996; Montforts, 1999; Van der Linden, 2000). In specific cases, there may be borderline cases with food and feeding area disinfectants (the EU “product type 4”), veterinary medicinal products (the EU “product type 3”) or wood preservatives (the EU “product type 8”). This can occur if a biocide is used for more than one purpose. This is, for example, the case when a biocide is often used as an insecticide in animal housings, as a preservative in feed (disinfectant) and as a medicinal product against external parasites for chickens.

The purpose of this emission scenario document (ESD) is to provide a realistic worst-case emission scenario for chemicals used at kraft pulp mills. The general information about the processes and chemicals used is derived from literature data and several reports from the European Union and the United States. The emission estimation methods given in this ESD are based on those developed by the Organization for Economic Cooperation and Development with parameter defaults reflecting Canadian operations. This ESD for Kraft Pulp Mills was developed in 2004 along with two sister documents, an ESD on Non-integrated Paper Mills, and an ESD on Recovered Paper Mills. Although they were designed as stand alone documents, by their nature they represent different phases of the life cycle of paper products.

The extraction of a common signal from a group of time series is generally obtained using variables recorded with the same frequency or transformed to have the same frequency (monthly, quarterly, etc.). The econometric literature has not paid a great deal of attention to this topic. In this paper we extend an approach based on the use of dummy variables to the well known trend plus cycle model, in a multivariate context, using both quarterly and monthly data. This procedure is applied to the Italian economy, using the variables suggested by an Italian Institution (ISAE) to provide a national dating, and compared with the equivalent multivariate and univariate approaches with monthly data. We note that the contemporaneous use of quarterly and monthly data provides results more consistent with the official ones with respect to the other approaches.

From the start of the 2001-2002 academic year, people who had not completed secondary school were able to enter higher education based on documented non-formal learning, realkompetanse. Based on interviews with key personnel at selected universities and university colleges, and on quantitative data from the applicant register, this article presents results from an evaluation of this reform in Norwegian higher education. The evaluation indicates that the reform, by and large, works according to the lawmakers’ intentions in providing a second chance for learners not usually linked with higher education. Still, findings suggest considerable variations in how the universities and university colleges have adjusted to the reform. Geographical location and supply of students are factors contributing to the institutions attitude to the reform. University colleges in rural areas with a low number of applicants, in general, react more positively to the reform and it seems to be easier for applicants to be assessed as qualified for studies, in such institutions.

French
The lack of human capital in Portugal has become a key obstacle to higher growth. This paper discusses the performance of education and training services in Portugal and shows that improvements are needed to narrow the significant human capital gap with other OECD countries. Despite progress in the past decades, Portuguese children spend comparatively few years in formal education, and they do not perform as well as children from other OECD countries. Adults, especially the least educated, do not participate enough in lifelong learning and training programmes. This situation does not stem from a lack of resources devoted to education and training but from inefficiencies and misallocation of spending, and weaknesses in the quality of the services that compound the low starting point of Portugal regarding education. Modernizing the Portuguese economy therefore requires a broad reform which increases human capital at all levels. The ongoing efforts of the authorities in the three areas - basic and upper secondary education, tertiary education and adult training - go in the right direction but implementation remains a challenge.
This report evaluates the evidence on how migration may promote or hinder development in countries of origin, and explores possible win-win solutions for both sending and receiving countries. The analysis of recent OECD data of foreign-born nationals into Europe documents the presence of multiple migration patterns and reveals that the EU lags significantly behind the United States in attracting highly-skilled migrants who originate mostly from Africa. Reviewing the analytical and empirical evidence on the economic and social costs and benefits of migration and remittances for sending countries reveals that migration can generate substantial direct and indirect gains for sending countries via employment generation, human capital accumulation, remittances, diaspora networks and return migration. Policy coherence across various policies including migration, trade, investment and development cooperation can augment these gains. Major challenges for EU policymaking to maximise the gains from migration for both sending and receiving countries could include better management of migration and human resources, smart visa policies to facilitate circular migration and greater synergies between migration and development assistance programmes in the context of poverty reduction strategy initiatives.
This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/pricesetting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982- 2003. In the “average” OECD country, high and long-lasting unemployment benefits, high tax wedges and stringent anti-competitive product market regulation are found to increase aggregate unemployment. By contrast, highly centralised and/or coordinated wage bargaining systems are estimated to reduce unemployment. These findings are robust across specifications, datasets and econometric methods. As policies and institutions affect employment not only via their impact on aggregate unemployment but also through their effects on labour market participation - particularly for those groups “at the margin” of the labour market, group-specific employment rate equations are also estimated. In the “average” OECD country, high unemployment benefits and high tax wedges are found to be associated with lower employment prospects for all groups studied, namely prime-age males, females, older workers and youths. There is also evidence that group-specific policy determinants matter, such as targeted fiscal incentives.
This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/price-setting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982-2003. In the "average" OECD country, high and long-lasting unemployment benefits, high tax wedges and stringent anti- competitive product market regulation are found to increase aggregate unemployment. By contrast, highly centralised and/or coordinated wage bargaining systems are estimated to reduce unemployment. These findings are robust across specifications, datasets and econometric methods. As policies and institutions affect employment not only via their impact on aggregate unemployment but also through their effects on labour market participation - particularly for those groups "at the margin" of the labour market, group-specific employment rate equations are also estimated. In the "average" OECD country, high unemployment benefits and high tax wedges are found to be associated with lower employment prospects for all groups studied, namely prime-age males, females, older workers and youths. There is also evidence that group-specific policy determinants matter, such as targeted fiscal incentives. The paper also finds significant evidence of interactions across policies and institutions, as well as between institutions and macroeconomic conditions. Consistent with theory, structural reforms appear to have mutually reinforcing effects: the impact of a given policy reform is greater the more employment-friendly the overall policy and institutional framework. Certain more specific interactions across policies and institutions are found to be particularly robust, notably between unemployment benefits and public spending on active labour market programmes as well as between statutory minimum wages and the tax wedge. Finally, it is shown that macroeconomic conditions also matter for unemployment patterns, with their impact being shaped by policies.

The new Swiss budget rule or “debt brake” is based on the idea or rather the aim that the structural deficit should be zero.1 Therefore, the size of the structural deficit is of special importance for the conduct of fiscal policy under the debt brake. In 2003, it was estimated that there is a structural deficit in the order of CHF 3.5 billion, which represents about 7% of central government expenditure or under 1% of GDP. In comparison to the European Union deficit rule (Maastricht criteria) of 3% of GDP, this is of course a small number. However, this excludes the social security accounts, which are not included in the federal financial accounts in Switzerland. In addition, under the regime of the debt brake, the adjustment of a structural deficit has in principle to be immediate, which can be quite painful even for relatively small deficits. The adjustment can also be delayed, but this requires special provisions either through the law or through a decision of parliament to overrule the debt brake for extraordinary circumstances. The latter has to be supported by a qualified majority of both chambers of parliament.

French

Between 2002 and early 2005 risk premia for a number of asset classes across broad geographical areas not only fell substantially but also tended to move more closely together than they had done historically. This raises the question to what extent this apparent reduced investor discrimination across asset classes went beyond what can be accounted for by market-specific developments. In particular, the reduced discrimination among asset classes could suggest that factors other than market- or country-specific events have played a role in narrowing risk premia.

This article focuses on non-departmental public bodies (NDPBs) in the Netherlands that are funded by public money and whose task is defined by law. In terms of public spending, the service delivery role of NDPBs is quite extensive, and they are investing in new ways of enhancing their efficiency, the quality of their services, and the confidence of those with whom they deal. The notion of broad public accountability applies: NDPBs are not only accountable to the responsible minister and to Parliament (vertical accountability) but to a wider range of stakeholders within civil society (social accountability, customer accountability). Internal accountability (supervisory boards) also has a role to play. The interrelationships are explored and various instruments are described, including performance contracts, annual reports, the role of ministers, and international social reporting standards.

In 2005, the OECD Programme on Educational Building (PEB) organised two international experts’ group meetings to discuss how countries define and evaluate quality in educational facilities. The research and experiences of six experts are presented in this article, in addition to the lessons learned from the experts’ group meetings. The director of a state construction programme describes the standards used to assess the educational adequacy of all public school facilities in the State of Maryland in the United States. A researcher presents a post-occupancy evaluation methodology used in schools in São Paulo, Brazil. Another researcher presents a data collection tool used to develop indicators on educational infrastructure in a number of municipalities in Greece. Two administrators discuss the development of norms to ensure minimum standards of quality and security in educational facilities in Mexico. Two architects present the results of a recent post-occupancy evaluation conducted in a new school in Pendão, Portugal. And an urban planner presents an international project to construct new schools in El Salvador using quality criteria.
French
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