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In 2020, the agriculture and food sector experienced significant supply chain disruptions due to the COVID-19 crisis and associated lockdown measures. Yet relatively limited economic impacts were observed on the sector due to the agility of producers, supply chain actors and retailers, but also to the rapid and broad response by governments. Close to 800 measures were undertaken by governments in 54 developed and emerging countries, aimed to avoid aggravating disruptions, absorb supply and demand shocks, provide relief to affected producers and consumers, or to bolster the recovery of affected production activities. At least USD 157 billion was earmarked to the agriculture sector to support these measures, with a large part going to food assistance. As the impact of the COVID-19 pandemic on this sector subsides, policy makers will need to pivot and shift spending to investments that can enhance sector-wide resilience.
Aspects of these two scenarios are then combined to identify common elements in a middle ground scenario. The middle ground scenario presented would not use centrally-allocated emissions allowances but would retain some level of commonly-agreed accounting rules to ensure shared understanding of the content and scope of pledges, and to provide a stable platform for international use of offset units. The middle-ground scenario also envisages a role for UNFCCC bodies to set standards for new credit-based market mechanisms, and suggests that the existing International Transaction Log might be modified to track new unit types in addition to existing Kyoto Protocol units. Transparent tracking of units would help to minimize the risk of “double counting” of emissions reductions towards the emissions objective of more than one country.
Regional inequality is low in Sweden compared to most other OECD countries, but has been rising over the past decades, fuelling discontent in parts of the country, whose inhabitants feel left behind. The younger population is increasingly concentrated in the largest cities, which also enjoy the highest productivity growth. Demographic trends exacerbate the difficulty in providing equal public services across the country. Healthy public finances are allowing the government to increase its support to municipalities and regions to adjust to demographic developments and local operating conditions. Beyond this effort, keeping regional inequality in check will require upgrading the sub-national government fiscal framework, enhancing public service efficiency, especially through digitalisation, and promoting regional convergence further, especially by strengthening the role of universities in regional knowledge and innovation networks.
Since the start of the COVID-19 crisis, demand for broadband communication services has soared, with some operators experiencing as much as a 60% increase in Internet traffic compared to before the crisis. In the medium term, regulators could stimulate broadband providers to deploy more fibre deeper into the networks and gradually phase out xDSL technologies, where possible, and alleviate administrative burdens to ease network deployment.
This paper builds an innovative composite world trade cycle index (WTI) by means of a dynamic factor model to monitor and perform short-term forecasts in real time of world trade growth of both goods and (usually neglected) services. The selection of trade indicator series is made using a multidimensional approach, including Bayesian model averaging techniques, dynamic correlations and Granger non-causality tests in a linear VAR framework. To overcome real-time forecasting challenges, the dynamic factor model is extended to account for mixed frequencies, to deal with asynchronous data publication and to include hard and survey data along with leading indicators. Nonlinearities are addressed with a Markov switching model. Simulations analysis in pseudo real-time suggests that: i) the global trade index is a useful tool to track and forecast world trade in real time; ii) the model is able to infer global trade cycles precisely and better than the few competing alternatives; and iii) global trade finance conditions seem to lead the trade cycle, in line with the theoretical literature.
These are among the issues that the OECD has analyzed and discussed with Member countries since 1992 in the context of its Jobs Strategy work. OECD Ministers have endorsed the Jobs Strategy recommendations and called last May for greater reform efforts. More recently the meeting of OECD Labour Ministers last October emphasised the need for policies for low-paid and unskilled job seekers, enhancing the effectiveness of active labour market policies and lifelong learning to maintain employability, issues ...
This report introduces cryptography to policy makers and includes key concepts such as symmetric and asymmetric cryptography, public key infrastructure, and end-to-end encryption. It discusses advancements in homomorphic encryption, which allows computations to be performed on encrypted data without decrypting it first and accessing the secret key. Often described as “the holy grail of cryptography”, homomorphic encryption remains a promising area of research rather than a fully developed technology. The report also addresses quantum technologies, which could pose a threat to the foundations of public key cryptography, potentially undermining trust in the digital ecosystem. While current quantum computers are far from causing such disruptions, a transition to quantum-resistant (or post-quantum) cryptography is essential today to address their future impact. Additionally, quantum cryptography shows significant promise for secure communications but is not yet suitable for sensitive applications.
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.
Since the last update in April 2021, recovery measures with positive impacts on the environment have increased significantly, both in terms of number and budget. However spending on environmentally positive measures still represents only 21% of total COVID-19 recovery spending (up from 17%) with environmentally negative and mixed measures accounting for 10%. Furthermore, ongoing annual support to fossil fuels will likely surpass all the one-off green recovery spending in the next couple of years and undermine efforts to meet the Paris climate goals. Skills development and innovation are still insufficiently addressed in green recovery plans, even though they are essential for achieving a rapid and just transition to net-zero emissions.
The Paris Agreement states that all countries should strive to formulate and communicate long-term low greenhouse gas emission development strategies (LT-LEDS) and the Paris Agreement’s accompanying decision invites countries to communicate a LT-LEDS by 2020. LT-LEDS are a fundamental tool available to countries to envision low-emission development in alignment with broader sustainability, socio-economic and climate change adaptation goals. This document aims to support countries’ efforts in the development of LT-LEDS, as it provides points of reflection for the establishment of an effective process for developing LT-LEDS. The document discusses potential elements to be included in a LT-LEDS; identifies and explores potential linkages between Nationally Determined Contributions (NDCs) and LT-LEDS; examines governance options for setting up a LT-LEDS process and analyses countries’ experience to date in developing LT-LEDS. The paper also provides a set of guiding questions useful for the development of LT-LEDS.
This policy paper sheds light on current trends in development co-operation for data and statistical systems in developing countries. It analyses trends in funding through official development assistance as well as strategic priorities and modalities for providing support. It identifies different approaches to capacity development and discusses their strengths, opportunities and risks. The objectives of the research published in this paper are twofold: first, to understand key challenges to ensuring support is effective, owned by partners, aligned with their priorities and needs, and conducive to producing capacity and results that outlive specific projects and; second, with a view to identifying good practices, to provide insights on how Development Assistance Committee members support statistics and statistical capacity development in developing countries.
Many existing works using firm-level data sets have examined whether or not knowledge spills over from MNEs to domestically owned firms in a less developed country, but the literature has not come to a general consensus on the presence of spillovers. A possible reason for the mixed results is that they do not adequately address domestic and foreign efforts for active diffusion. The present paper thus incorporates R&D activities and human resource development conducted by MNEs and domestic firms to investigate whether these activities enhance knowledge diffusion from MNEs, using establishment-level panel data for the Indonesian manufacturing sector. We find that R&D activities and human resource development conducted by MNEs stimulate knowledge diffusion from MNEs to domestic firms, while knowledge diffusion from MNEs without such activities is absent. Moreover, R&D activities by a domestic firm are also found to promote knowledge diffusion from MNEs to the firm, although this ...
Governments cannot afford to overlook a ground swell that is currently transforming companies, and more especially big companies. It is important that governments draw the appropriate conclusions, not by seeking to “copy” the private sector, but by endeavouring to innovate in accordance with their own identity and specificity and in accordance with their own way of managing their human resources. The following issue paper is in three parts: the first part briefly describes the ground swell, which is commonly known as knowledge management; the second part shows why this movement is also of significance for the public sector; the third part makes proposals with a view to initiating a debate capable of turning into a genuine action programme affecting government over the coming years...
The OECD LEED Programme in cooperation with the University of Trento has prepared this paper to analyse in deep the behaviour of knowledge networks in two specific local contexts: the Autonomous Province of Trento in Italy and the Magdeburg Province in Germany.
The aim of this research project is to analyse the relevance of knowledge networks to entrepreneurship and the growth of young and small firms, the role of the different components and their interplay for network effectiveness, impeding and favouring factors, and the role of public policy.
Universities are, to a large extent, publicly funded. It is reasonable to expect that society should benefit as a result. This means that scientific research should at least have a potential societal impact. Universities and individual researchers should therefore give serious thought to the societal relevance of their research activities and report on them widely. Core questions they should be asking are: “Do we do the right things?” and “Do we do them right?”. This implies that as well as indicators of scientific quality, attention should be given to indicators of societal relevance. These two considerations are examined in the context of current evaluation practices of academic research. Twelve indicators of societal relevance are proposed, focusing on both their socio-cultural and economic value. The examples given mainly concern the health and life sciences. This paper concludes with a discussion of the key challenges in evaluating the societal relevance of scientific research.
The importance of knowledge co-creation – the joint production of innovation between industry, research and possibly other stakeholders, such as civil society – has been increasingly acknowledged. This paper builds on 13 cross-country case studies and co-creation experiences during the COVID-19 pandemic to characterise the diversity of knowledge co-creation initiatives and identify lessons for policy. The paper identifies a strong rationale for policy to support knowledge co-creation because the benefits of successful co-creation initiatives outweigh the initial co-ordination costs. Moreover, knowledge co-creation initiatives can contribute to democratising innovation. Successful initiatives engage all stakeholders and have effective governance and management structures. They also have clearly defined ownership and use rights of the collaborations’ outcomes and benefit from favourable conditions to operate, including temporary staff mobility and institutional set-ups that facilitate collaboration and effective communication among participants.