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The home learning environment for 15-year-old students has changed in meaningful ways over the last decade, especially after 2018, according to PISA data. The rise of digital technology has meant books – traditionally the leading pedagogical resource – are increasingly competing with digital devices and Internet access. Since 2015, the overall number of books available at home decreased moderately, while the availability of educational software has surged. Certain types of books, such as dictionaries, have decreased the most, probably replaced by digital equivalents (online dictionaries). In contrast, paper copies of classic literature are more widely available at home than before. While there is potential for digital technologies to enhance education, this largely remains untapped, and the risks for adolescents’ well-being are clearer today. Education policy should explore ways to support families and students to navigate these complex changes in the family learning environment, balancing traditional and digital resources effectively.

To mark the 40th anniversary of the OECD Local Employment and Economic Development (LEED) Programme, this paper examines determinants and consequences of employment resilience, or lack of, in European NUTS3/TL3/TL3 regions over the last 40 years. Descriptive evidence shows that the least resilient regions (those with the largest percentage drop in employment during a recession) slip to persistently lower post-recession employment-to-population ratio trajectories. On the other hand, regions with higher productivity pre-recession lost proportionally fewer jobs during a recession and were more likely to recover to the pre-recession employment levels (except for the recession induced by the COVID-19 pandemic). Overall, the findings point to the ability of productivity to serve as a shield against negative employment impacts of economic crises.

For centuries, governments in high-income countries have offered financial incentives to external parties for innovative solutions to complex problems. However, open innovation mechanisms like challenge funds and prizes have been less prevalent in low-income countries. This working paper explores the effects of such mechanisms on innovation ecosystems and how challenge funds and prizes have contributed to building dynamic capabilities in public sector entities.

High energy prices and major geopolitical shifts, paired with an accelerated global digitalisation of industries of economies worldwide and rising pressure to achieve sustainability goals, have created new uncertainties for German SMEs. Successfully navigating these changes, and in turn, seizing new growth opportunities, will require sustained and significant investments. Access to an appropriate and diverse set of financing sources will be critical. This paper examines current policy practices to help German SMEs access finance, with a particular focus on efforts to link growth to sustainability goals in the national policy mix. It provides a brief overview of the German SME landscape, including key strengths and challenges in the context of the twin transition, and discusses the financing instruments available to small businesses in the country, including those with growth ambitions. It then analyses federal government efforts to unleash finance for innovation, investment, and network expansion as drivers of SME growth, and how these efforts compare to other OECD countries.

This paper takes stock of Financial Management Information Systems (FMIS) practices in OECD countries based on the results of the 2022 OECD Survey on Financial Management and Reporting.

Ubiquitous access to high-quality broadband connectivity is crucial for digital transformation, economic growth, and productivity. The challenge lies in ensuring sustained long-term investments in broadband infrastructure. This report examines the diversity of actors in the financial landscape of connectivity infrastructure, highlighting trends in broadband network financing and future implications. It focuses on five important groups that invest in and provide funding for broadband infrastructure: communication operators, tower companies, big technology companies, financial asset managers, and the public sector. Communication operators saw revenue growth from 2008 to 2022, but their investment decisions going forward will depend on future returns and interest rates. Meanwhile, tower companies, big technology companies, and financial asset managers are reshaping the connectivity landscape. Finally, the report looks at the public sector, which plays an important role in enabling investments in communication infrastructure.

The global risk landscape is rapidly evolving due to interconnected economies, societies, and technologies. To manage emerging critical risks, governments must anticipate, understand, and address these risks, which are transboundary, highly uncertain, and systemic. This Framework, supporting the OECD Recommendation on the Governance of Critical Risks, outlines a seven-step process for managing such risks. The steps include identifying and assessing risks, sharing information, evaluating management maturity, and developing strategic recommendations. Exercises are conducted to validate gaps and proposed solutions, while strategic plans ensure flexibility and adaptability in response to risks. Implementation integrates these emerging risks into traditional risk management processes, fostering resilience against current and future challenges. It provides a structured process for governments to validate identified gaps in knowledge, authorities and capabilities needed to manage emerging risks and to validate plans for building-in flexibility and adaptability to unforeseen or poorly understood risks.

Governments worldwide are increasingly adopting behavioural science methodologies to address "sludge" – the unjustified frictions impeding people' access to government services and exacerbating psychological burdens. Sludge audits, grounded in behavioural science, provide a structured approach for identifying, quantifying, and preventing sludge in public services and government processes. This document delineates Good Practice Principles, derived from ten case studies conducted during the International Sludge Academy, aimed at promoting the integration of sludge audit methodologies into public governance and service design. By enhancing government efficiency and bolstering public trust in government, these principles contribute to the broader agenda on administrative simplification, digital services, and public sector innovation.

In diesem Bericht wird erläutert, warum es erforderlich ist, das Finanzkompetenzniveau der Menschen in Deutschland zu steigern und eine nationale Finanzbildungsstrategie einzuführen. Er geht auf verschiedene Finanzkompetenzniveaus ein und beschreibt die direkt an der Förderung der Finanzkompetenz beteiligten Akteure sowie die derzeit auf Bundes-, Landes- und kommunaler Ebene umgesetzten Finanzbildungsinitiativen. Außerdem enthält er Empfehlungen für die Gestaltung der nationalen Strategie.

English

The report presents the rationale for increasing the financial literacy levels of individuals in Germany and for the adoption of a National Strategy for Financial Literacy. It describes financial literacy levels, the actors directly involved in promoting financial literacy and the ongoing financial literacy initiatives at the federal, state and local levels. It provides policy recommendations for the design of the National Strategy.

German

Gender inequalities in Australia have steadily declined, but remain particularly visible in the labour market. Women in Australia have lower employment rates, hourly wages and hours worked than their male counterparts. Childbirth is particularly disruptive for their labour market experience. Reforms to the tax and benefits system, childcare and parental leave arrangements are all needed to reduce the barriers to female labour participation of mothers. At the same time, ensuring the adequacy of unemployment benefits will support the living standards of many low-income women given that they have become an increasing share of recipients. Single mothers face particularly high poverty risk and would also benefit from more robust arrangements around child support payments from non-custodial parents.

Emerging technologies can contribute to unprecedented gains in health, energy, climate, food systems, and biodiversity. However, these technologies and their convergence sometimes carry risks to privacy, security, equity and human rights. This dual-edged nature of emerging technology requires policies that better anticipate disruptions and enable technology development for economic prosperity, resilience, security and sustainable development. Drawing on prior OECD work and legal instruments, this framework equips governments, other innovation actors and societies to anticipate and get ahead of governance challenges, and build longer-term capacities to shape innovation more effectively. Its “anticipatory technology governance” approach consists of five interdependent elements and associated governance tools: (1) embeding values throughout the innovation process; (2) enhancing foresight and technology assessment; (3) engaging stakeholders and society; (4) building regulation that is agile and adaptive; and (5) reinforcing international cooperation in science and norm-making. The emerging technology context determines how each of these elements is applied.

French

Fertilisers are crucial components of food systems, with impacts beyond agricultural markets. This study utilises the OECD-FAO Aglink-Cosimo model to examine the intricate interplay between fertiliser markets, policies, and their repercussions on agricultural markets, food security, and environmental sustainability over the medium term. Two distinct scenario analyses reveal significant insights. The first scenario shows that while short-term disruptions in fertiliser supply can be mitigated by existing stocks, prolonged deficits will increase global food prices by up to 6%, posing long-term threats to agriculture. In the second scenario, the removal of fertiliser subsidies in India leads to reduced domestic use, resulting in decreased agricultural production and exports coupled with increased imports. Although this will cause a modest 0.8% increase in global food prices, it will substantially cut agricultural greenhouse gas emissions by 7 million tonnes of CO2 equivalent, highlighting the pivotal role of domestic policies in attaining global environmental sustainability goals.

This paper gives an overview of all development finance sources available to countries of the Organisation of Eastern-Caribbean States (OECS) for enhancing their economic and climate resilience, and progress towards their Sustainable Development Goals (SDGs). After reviewing political and macroeconomic contexts, it examines some of the specific challenges and opportunities they meet in financing their development, including the mobilisation of private finance and domestic resources; public debt sustainability; and the alignment of official development finance (ODF) with their evolving needs. It stresses the risks of inadequately preparing for the end of eligibility to official development assistance (ODA), when countries reach high-income status while remaining highly vulnerable. Finally, it presents recommendations for the OECD Development Assistance Committee (DAC) members to better support and accompany OECS countries as they transition to higher-income status.

Open unemployment and joblessness in Switzerland are low compared to OECD standards. Yet a comparatively high proportion of working-age individuals remain weakly attached to the labour market, with unstable jobs, or with limited working hours. As an initial step towards a possible in-depth project, this Faces of Joblessness feasibility study provides insight into the nature and incidence of the structural barriers that are likely to prevent individuals from fully engaging in employment and speculates on their possible links with underutilized employment potential. It shows that lack of recent work experience and substantial non-labour or partner income are two key employment barriers in Switzerland. Partner income can be a barrier for women in particular and might be one of the reasons why many women leave stable employment at childbearing age, alongside low supply and high cost of early childhood education and care programs. Workers over 60 also represent a significant underutilized employment potential, as many have taken early retirement. Non-EU migrant are particularly exposed to potential labour market difficulties at younger age, and many of them have low levels of education, poor professional skills or limited work experience. This study also suggests that many jobless are confronted with complex and inter-related employment obstacles.

This scoping review examines the effectiveness of online and blended learning in fostering higher-order thinking skills in higher education, focussing on creativity and critical thinking. The paper finds that whilst there is a growing body of research in this area, its scope and generalisability remain limited. Current evidence suggests that, for most students and contexts, in-person learning yields better or equivalent outcomes for higher-order thinking skills than fully online learning. However, blended and flipped learning show promise. In some cases, they may be more effective than in-person learning to develop higher-order skills. The review aims to be of use to higher education practitioners by synthesising, for the first time at such a scale, the diverse literature on what supports students to develop these skills online. This has been linked to active and interactive online learning, well-structured project-based learning, disciplined questioning, students labelling relevant dimensions of their thinking, and regular, quality instructor and peer feedback. The review calls for improved research design to understand the effectiveness of different modes of learning and address gaps in the literature, which include fostering creativity online and ensuring equitable online skills development across disciplines and teaching contexts. Policy implications include the need to integrate attention to higher-order thinking skills into professional learning, innovation funds, national networks and quality assurance to support effective online teaching of these skills across higher education systems.

Banks and other financial institutions have a central role to play in supporting the net zero transition of the business sector and its millions of SMEs. They are working to integrate climate considerations in various aspects of their operations, including strategy, management and financial products. This calls for the development of new internal capacities and access to SME sustainability data and assessments which are currently difficult to obtain.

This policy paper presents the findings of a 2023 survey of public development banks and private financial institutions, conducted by the by the OECD Platform on Financing SMEs for Sustainability. It provides insights on financial institutions' current approaches and plans for the integration of climate considerations in their SME operations. It also provides information on the offer of finance and non-financial support for SMEs’ net zero investments and on related SME climate-related data requirements.

Green hydrogen, produced from water and renewable power through the electrolysis process, can play a crucial role in the low-carbon transition to achieve the net-zero emission targets. Currently, the production cost of green hydrogen is not competitive when compared to hydrogen produced from natural gas. High capital costs are a major factor constraining its cost-competitiveness. This working paper utilises financial market data to address the knowledge gap concerning the range of Weighted Average Cost of Capital (WACC) for green hydrogen projects. It also conducts a survey among investors and financiers to identify key risk factors contributing to the high WACC. The key risks that have been identified include offtaker risks, lack of credible offtakers, price uncertainty of green hydrogen, and the absence of hydrogen trading markets. These risks are closely connected to the available risk mitigation strategies and tools. The paper summarises key risk mitigation strategies identified through case studies of lighthouse green hydrogen projects that have either reached or are nearly point of reaching financial investment decisions.

Industry decarbonisation is a cornerstone to reach net-zero emissions by this mid-century. The diversity of industrial activities, processes and products, the complexity of global industrial value chains, and the international competition make industry decarbonisation a challenging objective. Annual investments in low-carbon technologies for industry decarbonisation need to increase by a factor of three to five by 2030 compared to current levels to align industrial emissions with net-zero pathways. This paper analyses available financing solutions to scale up investments at pace, especially in emerging and developing economies where industrial production is growing rapidly whilst available finance is limited. It highlights de-risking and financial instruments and models that can help accelerate investments and draws lessons from twelve financing industry decarbonisation case studies which demonstrate how private capital can be mobilised.

In response to the increase of cyberattacks in health care settings, the Health Committee of the OECD asked for a paper on Digital Security as part of the OECD ongoing work on health data governance. This working paper emphasizes that as the healthcare industry undergoes digital transformation it brings significant benefits while simultaneously escalating the vulnerability to cyber threats.

This working paper summarises survey results based on the OECD framework for digital security risk management. The paper reveals varying levels of digital security alignment among countries, with Ireland and Korea exhibiting full alignment. Countries with specific strategies for digital security in health showed higher alignment to leading practices. The paper identifies key areas for improvement, including fostering a digital security culture through training, strengthening strategy and governance, and embedding risk assessment and treatment.

The paper also emphasises the need for collaboration on innovative tools to detect and manage digital security threats, such as multi-factor authentication and encryption. These collaborative efforts are essential to safeguard the digital foundations of modern healthcare systems and ensure the security of health data and services.

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