In the face of megatrends such as globalisation, climate and demographic change, digitalisation and urbanisation, many cities and regions are grappling with critical challenges to preserve social inclusion, foster economic growth and transition to the low carbon economy. The 17 Sustainable Development Goals (SDGs) set the global agenda for the coming decade to end poverty, protect the planet and ensure prosperity for all. A Territorial Approach to the Sustainable Development Goals argues that cities and regions play a critical role in this paradigm shift and need to embrace the full potential of the SDGs as a policy tool to improve people’s lives. The report estimates that at least 105 of the 169 SDG targets will not be reached without proper engagement of sub-national governments. It analyses how cities and regions are increasingly using the SDGs to design and implement their strategies, policies and plans; promote synergies across sectoral domains; and engage stakeholders in policy making. The report proposes an OECD localised indicator framework that measures the distance towards the SDGs for more than 600 regions and 600 cities in OECD and partner countries. The report concludes with a Checklist for Public Action to help policy makers implement a territorial approach to the SDGs.
The overall aim of this scoping review was to explore the possible options for a tiered approach to bioaccumulation testing, the available tools or test methods, and to provide data to show potential linkages between the possible tiers in the testing strategy, as well as the evidence-base for seeking alternatives to using live fish. An example scheme is outlined here, with four possible tiers to show the thinking on how such a scheme might work in practise. The tiers include: (i) chemistry triggers as alternatives to the log Kow test that are more relevant to the behaviour of nanomaterials (MNs); (ii) the inclusion of data from invertebrate tests, cell cultures, and/or in silico models to provide a weight of evidence for a bioaccumulation concern; (iii) an in vitro tier using fish gut tissue; and finally, tier (iv), the dietary method of TG 305.
Artificial intelligence (AI) and robotics are major breakthrough technologies that are transforming the economy and society. The OECD’s Artificial Intelligence and the Future of Skills (AIFS) project is developing a programme to assess the capabilities of AI and robotics, and their impact on education and work.
This volume reports on the first step of the project: identifying which capabilities to assess and which tests to use in the assessment. It builds on an online expert workshop that explored this question from the perspectives of both psychology and computer science. The volume consists of expert contributions that review skills taxonomies and tests in different domains of psychology, and efforts in computer science to assess AI and robotics. It provides extensive discussion on the strengths and weaknesses of different approaches, and outlines directions for the project. The report can therefore be a resource for the research community of multiple fields and policy makers who wish to obtain deeper insight into the complexity of machine capabilities.
As artificial intelligence (AI) expands its scope of applications across society, understanding its impact becomes increasingly critical. The OECD's AI and the Future of Skills (AIFS) project is developing a comprehensive framework for regularly measuring AI capabilities and comparing them to human skills. The resulting AI indicators should help policymakers anticipate AI’s impacts on education and work.
This volume describes the second phase of the project: exploring three different approaches to assessing AI. First, the project explored the use of education tests for the assessment by asking computer experts to evaluate AI’s performance on OECD’s tests in reading, mathematics and science. Second, the project extended the rating of AI capabilities to tests used to certify workers for occupations. These tests present complex practical tasks and are potentially useful for understanding the application of AI in the workplace. Third, the project explored measures from direct AI evaluations. It commissioned experts to develop methods for selecting high-quality direct measures, categorising them according to AI capabilities and systematising them into single indicators. The report discusses the advantages and challenges in using these approaches and describes how they will be integrated into developing indicators of AI capabilities.
Small and Medium Entreprises (SMEs) play an important role in ASEAN economic integration, as 95-99% of firms in the region are SMEs. SME development is embedded in the third pillar of the ASEAN Economic Community (AEC) Blueprint, namely, equitable economic development, and its development would directly contribute towards achieving the implementation of the third pillar. SMEs in the region, however, are reported to have difficulties in access to finance, technology, and competitive markets. Entrepreneurship, compliance with 22 standards, marketing and management are also some of the other problems faced by SMEs in ASEAN. Usually, SMEs are in a much weaker position than large firms to deal with the vicissitudes of economic volatility. They will be forced to respond to these developments by implementing risk management strategies, speeding up customer payments, focusing on the retention of skilled staff where possible and critical for high tech SMEs, cutting costs, diversifying into new markets, and improving their corporate governance. These, however, are not likely to be an adequate response and will need to be supplemented by appropriate policies aimed at addressing these vulnerabilities. As such, an appropriate SME policy framework is fundamentally important for the growth of the private sector, in particular, SMEs, as is the need to ensure that the adverse consequences of external or exogenous disturbances emanating from regional trade partners have a minimal disruptive impact on domestic and regional economies.
This report builds on the OECD Well-being Framework and applies a new perspective that analyses synergies and trade-offs between climate change mitigation and broader goals such as health, education, jobs, as well as wider environmental quality and the resources needed to sustain our livelihoods through time. This report takes an explicitly political economy approach to the low-emissions transitions needed across five economic sectors (electricity, heavy industry, residential, surface transport, and agriculture) that are responsible for more than 60% of global greenhouse gas emissions. Synergies between emissions reduction and broader well-being objectives, such as reduced air pollution and improved health, increase the incentives for early mitigation action. At the same time, the impact of climate policies on issues such as the affordability of energy and jobs need to be taken into account to counter growing economic and social inequalities within and between countries. The report argues that reframing climate policies using a well-being lens is necessary for making visible such synergies and trade-offs; allowing decision-makers to increase the former and anticipate, manage and minimise the latter. This requires us to rethink societal goals in terms of well-being, reframe our measures of progress and refocus policy-making accordingly.
This report analyses the actions necessary in the near and medium term to reduce Israel’s GHG emissions in three sectors– electricity, residential and transport, for which specific policy recommendations are developed. The report will serve as input to the roadmap that will be developed to support the country’s long-term low-emission strategy (LT-LEDS). The report adopts a “well-being lens” that aims to integrate climate action and broader societal priorities, such as affordable housing, better accessibility to jobs, services and opportunities, and improved health. Such an approach can make climate policies both easier to implement politically, economically and socially, as well as more cost-effective. Particular attention is given to avoiding locking in unsustainable development pathways that would impede the achievement of net-zero carbon dioxide emissions in the second half of the century. In addition to the range of sector specific recommendations, a key recommendation for Israel is to enshrine the vision and targets of its LT-LEDS in national legislation, once developed and agreed. While written before the COVID-19 crisis, this report can also inform decisions on Israel’s recovery from the crisis, helping to avoid actions that would lock-in “inferior” carbon-intensive paradigms and entrench inequalities or reduce quality of life more broadly.
Prepared by the OECD’s Competition Committee, this report focuses on the telecommunications industry and seeks to deepen the understanding of access regulation. Access issues are not easy issues for regulators and competition policy-makers - they can be both difficult technically and the source of noisy disputes in practice. By bringing together theory and practice, this report seeks to help regulators and policy-makers learn from OECD experience to achieve efficient and competitive outcomes.
Current population trends and the COVID-19 pandemic reinforce the need for efficient public service provision while guaranteeing good access to all. Population decline and ageing in rural regions affect the provision of services through lower economies of scale and scope, professional shortages and longer distances. Reliable estimates of the costs and access arising from demographic and geographical differences can help adapt the provision of services to different territorial realities. This report provides internationally comparable fine-grained present and future estimates of the cost and physical access to education (primary and secondary) and health services (cardiology, maternity and obstetrics) in European countries. The report finds that demographic change in the next decades will likely further strain the trade-off between costs and access, especially in remote rural areas. Adapting to changes in demand following lower fertility rates and ageing implies that services will need to become more widely available, while others will have to concentrate more. This report aims to support evidence-based policy decisions to ensure service provision allows for both cost efficiency and a sufficient level of access in all territories.
Small and medium-sized enterprises (SMEs) play an important role in Georgia’s economy. SMEs provide more than 67% of employment and about 62% of gross value added. Although the environmental footprint of individual SMEs may be low, their aggregate impact in many respects exceeds that of large businesses.
Commercial banks have an important role to play in providing access to green finance, particularly for SMEs. This report reviews the experience with green lending in the SME sector in Georgia. The analysis identifies the main challenges with lending to SMEs for green projects and discusses possible solutions. The report, in particular, looks at the role of the government and the policy instruments it can use to stimulate higher demand for green lending in the SME sector.
Like many OECD countries, Latvia is taking an innovative, user-centred approach to improving legal and justice services by strengthening the judicial sector and law enforcement authorities This report reviews the commercial, legal and regulatory framework in Latvia, highlighting its impact on businesses and its suitability for different forms of commercial activity. It analyses business’ legal and justice needs, and evaluates the accessibility and responsiveness of public services for business, including dispute resolution mechanisms. Finally, the report provides recommendations to help Latvia better tailor justice services to the needs of business and thus support more inclusive growth.
This report provides a case study for the development of sustainable energy lending in Ukraine. It reviews the macro-economic and political context for green investments in Ukraine, before looking in more detail at the role and capacity of the banking sector. The study is part of a wider OECD project promoting access to private finance for green investments in the EU Eastern Partnership (EaP) countries, and follows on from a regional assessment undertaken in 2015. This work forms part of the “Greening Economies in the European Union’s Eastern Neighbourhood” (EaP GREEN) programme, which aims to support the six Eastern Partnership countries to move towards a green economy by decoupling economic growth from environmental degradation and resource depletion.
This report identifies the success factors for accessibility-based approaches to transport project appraisal. It explores the role of cost-benefit analysis as an appraisal tool and how it could better address distributional issues. Finally, it reviews the case for aligning accessibility metrics more closely with policy objectives and how they can be communicated via accessibility mapping.
Brandenburg’s economy is undergoing structural change, which opens exciting new prospects for highly skilled workers. The state has intensified efforts to diversify the economy towards cleaner and more knowledge-intensive industries, including the development of advanced manufacturing, spill-over effects from the start-up scene in Berlin, fostering entrepreneurial activities at its own higher education institutions, promoting innovative places for working and living, and phasing out of coal production in favour of next-generation technologies. As the engine of skills development and research, the higher education system will play an important role in helping the state unleash these opportunities. The German State of Brandenburg has therefore entrusted the Organisation for Economic Co-operation and Development – in close collaboration with and supported by the European Commission’s Directorate-General for Structural Reform Support – with the development of recommendations on how to enhance the visibility of its institutions’ programme offer, align this offer with the skills and innovation demand, and make it more attractive to prospective students from the state and beyond.
This report presents findings from a survey on green finance conducted among 1 000 households in the Kyrgyz Republic (Kyrgyzstan) in 2019. Although green finance is an emerging trend, knowledge about the appetite for green financial products and services in Kyrgyzstan is almost inexistent. The OECD prepared the household survey to close this gap in evidence. The research identified needs and demand from existing and potential clients of Kyrgyz financial institutions for financial instruments, including those that promote sustainable development. This will help commercial banks, policy makers and central bankers design more targeted interventions to increase access to and use of financial products and services, including green finance, in Kyrgyzstan.
The ability of citizens to demand accountability and more open government is fundamental to good governance. There is growing recognition of the need for new approaches to the ways in which donors support accountability, but no broad agreement on what changed practice looks like. This publication aims to provide more clarity on the emerging practice. Based on four country studies Mali, Mozambique, Peru and Uganda, a survey of donor innovations and cutting-edge analysis in this field, and the findings of a series of special high-level international dialogues on how to best support accountability support to parliaments, political parties, elections and the media. The publication takes the view that a wholesale shift in behaviour is required by parts of the development assistance community - moving outside conventional comfort zones and changing reflexes towards new approaches to risk taking, analysis and programming around systems of accountability and ‘do no harm’ efforts in political engagement.
This piece is aimed at a range of development practitioners, as well as a wider audience, including civil society actors and citizens around the world who interact with donors working on accountability support.
Using this Guide will facilitate the practical implementation of the OECD Guidelines on Corporate Governance of State-Owned Enterprises in the areas of transparency and accountability. It provides viable policy options and a step-by-step road map on how to address typical difficulties, risks and hurdles that may be encountered. It also provides concrete examples of good practices that can serve as a reference and inspiration. The Guide will help governments, their ownership entities and other stakeholders to evaluate existing practices and support reforms.
In most countries, improving transparency and accountability in state-owned enterprises entails a number of complex challenges. Addressing these, with the help of this Guide, is an important step in the process of establishing well-governed and economically sound state-owned enterprisesDesigned to strengthen and deepen implementation of the Paris Declaration, the Accra Agenda for Action (AAA) takes stock of progress and sets the agenda for accelerated advancement towards improving the quality and impact of aid. The AAA represents an unprecedented alliance of more than 80 developing countries, OECD Development Assistance Committee donors, some 3 000 civil society organisations, emerging economies, UN and multilateral institutions, and global funds.
Financial reporting is one of the foundations of good fiscal management. High-quality financial reports are essential to ensure that a government’s fiscal decisions are based on the most up-to-date and accurate understanding of its financial position. Financial reports are also the mechanism through which legislatures, auditors, and the public at large hold governments accountable for their financial performance. Over the past two decades, a growing number of governments have begun moving away from pure cash accounting toward accrual accounting to improve transparency and accountability and better inform fiscal decision making. This study reviews and compares accounting and budgeting practices at the national government level in OECD countries. It also discusses both the challenges and benefits of accruals reforms. Finally, it looks at some steps countries are taking to make better use of accrual information in the future. This is a joint publication with the International Federation of Accountants and the OECD.