OECD Development Centre

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1 OECD Development Centre

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3 Engaging for prosperity better lives and /////////////////////////////////// A message from Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development During the 1990s, 12 developing countries achieved growth rates equivalent to double the OECD average. Between 2000 and 2010, that number rose to 83. Non-OECD countries share of global economic output overtook that of the OECD countries in The magnitude of the accompanying shift in wealth is self-evident. The Development Centre provides a special place where OECD countries and emerging and developing economies can meet as equals. Member countries regularly come together to share experiences and profit from the Centre s cross-sectoral analysis. The diversity and complexity of successful policies for development demand new analysis and methodologies exploring what works and what doesn t and in what context. Consequently, scouting new perspectives for development in a rapidly evolving global landscape is a driving force of the Centre s work. Development involves more than economic growth, so the Development Centre s research and policy dialogue focus on a major question: How to build and maintain competitive economies and inclusive societies. Through regional and national analysis, the Development Centre provides an in-depth understanding of regional and national development constraints. On a national level, the Centre works closely with governments to produce cutting-edge analysis for better informed development strategies that boost economic and social well-being. One of the Centre s key concerns is to help its member countries translate their increasing capacity for growth into wider social progress and well being. Through its work on topics such as gender equality, middle classes, the informal economy, fiscal policies, social protection and migration, the Centre is identifying policies and mechanisms that harness economic growth for better lives, stable societies and long-term prosperity. OECD Development Centre 3

4 Bridging OECD and partner countries //////////////////////////// The OECD Development Centre has a unique membership The Development Centre of the Organisation for Economic Co-operation and Development (OECD) is a special platform for knowledge-sharing and evidence-based policy dialogue where developing countries, emerging economies and OECD member countries interact on an equal footing. The inclusive nature of its membership, coupled with its expertise, helps to find innovative policy solutions to pressing development challenges. The Centre was established when US President John F. Kennedy, addressed the Canadian Parliament on 17 May 1961 and proposed a forum where countries rich and poor could study in common the problems of economic development. Today, it is more relevant than ever as it addresses global development perspectives through different lenses. As of March 2019, the OECD Development Centre has 54 member countries: 27 emerging and developing economies, and 27 OECD member countries: Argentina Belgium Brazil Cabo Verde Chile China (People s Rep. of) Colombia Costa Rica Côte d Ivoire Czech Republic Denmark Dominican Republic Egypt El Salvador Finland France Germany Ghana Greece Guatemala Iceland India Indonesia Ireland Israel Italy Japan Kazakhstan Korea Luxembourg Mauritius Mexico Morocco Netherlands Norway Panama Paraguay Peru Poland Portugal Romania Senegal Slovak Republic Slovenia South Africa Spain Sweden Switzerland Thailand Tunisia Turkey United Kingdom Uruguay Viet Nam Members finance the Centre and serve on its Governing Board, which sets the biennial work programme and oversees its implementation. The European Union also takes part in the work of the Governing Board. More information and updated list of members: 4 OECD Development Centre

5 Sharing knowledge innovative solutions for that work ///////////////////////////////////////////////////////////////////////////////// From research and dialogue to action The OECD Development Centre helps developing countries and emerging economies to find innovative policy solutions that promote sustainable growth while reducing poverty and improving people s lives. Through multidimensional analysis and policy dialogue, the Centre identifies and shares options for building cohesive societies and competitive economies, helping countries to find the development trajectories that suit them best and shaping the development debate. In an increasingly interconnected and complex global economy, it is vital that countries at different levels of development can share their policy experiences. The Development Centre aims to contribute to the implementation of the Sustainable Development Goals through monitoring of progress, co-creation of knowledge, and peer country learning between OECD and non-oecd countries. The Centre brings countries together to explore options for building inclusive societies and competitive economies. It opens new perspectives, promotes stronger co-operation with and within regions, and makes new country diagnostic tools available. Our work on inclusive societies focuses on improving social protection systems and social cohesion, making sure young people are not left behind, eliminating gender inequalities and strengthening the links between migration and development. To promote competitive economies, we examine what countries need to do to achieve economic transformation and higher productivity growth, including boosting education and skills, managing natural resources for the benefit of all, and making the best of participation in global value chains. We encourage new perspectives on development through our flagship annual report Perspectives on Global Development, through our annual Global Forum on Development, and via partnerships, including with foundations (netfwd) and multinational corporations (EmNet). We inform regional co-operation and national policy and practice thanks to our multidisciplinary regional and national analysis, through our publications African Economic Outlook, Latin American Economic Outlook and Economic Outlook for Southeast Asia, China and India. For each of these regions we also host annual international economic forums. On a national level, our multi-dimensional country reviews offer advice on overarching sustainable development issues including macroeconomic, structural and institutional policies. More information: OECD Development Centre 5

6 INCLUSIVE SOCIETIES COMPETITIVE ECONOMIES NEW PERSPECTIVES FOR DEVELOPMENT REGIONAL AND NATIONAL ANALYSIS Page 7 Page 10 Page 13 Page 16 6 OECD Development Centre

7 Building societies everyone where can find a place //////////////////////////////////////////////// Smart policies that promote social cohesion Today most of the world s poor are living in middle-income countries. Over the next decade many of these people will become part of an emerging, yet still vulnerable, middle class. At the same time, growth has stalled in several lowand middle-income countries or has not been broad-based enough, creating fewer formal jobs for the young generations. Poverty is persisting and inequality is rising, threatening political and social stability. Improvements in living conditions are not being shared equally: young people, women, ethnic minorities, immigrants and elderly people often miss out. To help countries overcome barriers to development that benefits all, the OECD Development Centre, with the support of the European Commission, is analysing the role of social protection and social policies such as a minimum wage, social safety nets and job protection to foster social cohesion and escape development traps. In addition, social cohesion policy reviews have been developed as a new tool for policy makers to improve their economic and social policies in a way that fosters cohesion. They focus on whether policies are designed to build trust, social capital and sense of belonging, and promote social mobility for all members of a society. The Centre is also exploring which policies best promote youth inclusion in economies and societies. More information: OECD Development Centre 7 INCLUSIVE SOCIETIES

8 Getting to the heart of gender inequality ////////////////////////// Countering discrimination against women The Centre s work on gender examines how discriminatory social norms perpetuate gender inequalities in developing countries. The Centre produces research linking social norms and institutions with a range of development outcomes, such as health, education and economic empowerment contributing to the post-2015 discussions. The Social Institutions and Gender Index (SIGI) is a unique cross-country measure that focuses on the laws, practices and attitudes that hold back progress on gender equality and women s empowerment. The SIGI s variables look at discriminatory practices within the family, violence against women, preferences for sons, secure access to land and assets, and civil liberties. SIGI results and analysis helps policy makers and civil society to better target their actions in tackling the root causes of inequality. The 2014 edition of the SIGI covers more than 160 countries. The SIGI includes three components: the Gender, Institutions and Development Data Base, country profiles and a ranking of countries with full data sets. is a collaborative Web platform that reaches out to the public to foster dialogue on women s rights and the links between gender equality and development. With over visitors each month, Wikigender is a key online resource in the area of gender equality and a tool to engage with policy makers, researchers, practitioners and civil society. More information: Social Institutions & Gender Index gender wiki 8 OECD Development Centre INCLUSIVE SOCIETIES

9 1 potential Harnessing the migration of global /////////////////////////////////////////// Policies that benefit migrants and countries The work of the OECD Development Centre on international migration explores the gains that migration brings not only to migrants but also to sending and receiving countries. Public policies in a wide range of areas play a key role in maximising the benefits and minimising the costs of migration, both in countries of origin and destination. It is thus important to better understand how international migration affects public policies and how public policies affect migration. How does migration impact employment, social cohesion and agriculture? How do broader policies affect migration flows, and the lives of migrants and communities? How can countries best incorporate migration into the design and implementation of their development strategies? With the European Commission s support, the Centre has been analysing the interrelations between public policies, migration and development of partner countries in Africa, Asia and Latin America. South-South migration has emerged as a key feature of the global process of shifting wealth. Fast-growing developing countries are becoming net immigration countries. Building on previous work, the Centre is assessing the economic contribution of labour migration in a wide range of developing economies, in co-operation with the International Labour Organization and with the support of the European Commission. Addressing the need for improved policy and institutional coherence in the realm of migration and development is of upmost importance. The Centre is actively participating in an initiative co-ordinated by the World Bank on the Global Knowledge Partnership on Migration and Development (KNOMAD). Together with the United Nations Development Programme, the Centre is chairing the Thematic Working Group on Policy and Institutional Coherence. More information: OECD InItIatIvE for OUR POlICy WORK DIalOguE On Global ON Value Chains, ProduCtion transformation INTERNATIONAL and MIGRATION development OECD Development Centre 9 INCLUSIVE SOCIETIES

10 Equipping economies for sustainable growth Bringing down the barriers to competitiveness What policies can help developing countries make the best use of their economic strengths and resources to create more jobs and grow faster? How can they meaningfully integrate into the global economy? The Development Centre helps developing countries and emerging economies find solutions to enhance productivity. Developing economies lag behind in private sector development and investment in innovation, for example. Some developing countries have integrated well into the global economy and developed world-class service industries, but the potential of the services sector remains to be explored in many other economies. What policies are needed to boost the emergence of competitive service industries? Is the services sector the key to unlock development in countries such as China? Investments in education and skills contribute not only to economic growth but also play a key role in terms of both intra and inter-generational social mobility. In many countries, a mismatch between the skills of the population and emerging skills requirements demands re-thinking education and vocational training policies to make them more effective. The Centre works in close collaboration with the Directorate for Education and Skills to apply the OECD skills strategy framework to developing countries, taking into account their specificities. Poor infrastructure and logistics are undermining competitiveness in many countries by increasing costs of production and transportation, and impeding the efficient delivery of goods and services. Infrastructure gaps require the mobilisation of large investments, which are often hampered by weak institutional capacities and policy frameworks. A large share of informal activities harms overall productivity, weakens the rule of law and increases the scope for bureaucratic discretion. The development of local financial markets is fundamental to inclusive growth, but is often impeded by a lack of adequate financial instruments and financial literacy. Ensuring that economic growth and a growing industrial base are reconciled with environmental concerns and territorial inclusiveness needs appropriate incentive structures. Which incentives work best in different countries and at different stages of development? More information: ///////////////////////////////////////// 10 OECD Development Centre COMPETITIVE ECONOMIES

11 to promote GVCs structural Harnessing participation in transformation /////////////////////////////////// Identifying the conditions for sustainable production The changing global economic landscape is redefining industrial development opportunities. What countries produce and how they organise production shape development trajectories and the inclusiveness of growth patterns. A growing number of countries are designing and implementing new industrial policies to promote production diversification to create jobs and increase productivity. While there is no one size fits all approach, much can be learned from comparative analysis and peer learning. The OECD Initiative on Global Value Chains (GVCs), Production Transformation and Development is a platform for policy dialogue and knowledge sharing between OECD and partner countries. It aims at improving evidence and identifying policy guidelines to promote development by fostering participation and upgrading in GVCs. By sharing experiences and policy-oriented research findings, the Initiative aims to discuss country strategies for production transformation and internationalisation; analyse emerging sectorial trends and dynamics; identify the drivers that determine participation and upgrading in GVCs; and develop new indicators to analyse participation in GVCs and support policy design and implementation, including by expanding ongoing work on OECD Trade in Value Added (TiVA). This Initiative counts on an advisory board of experts from several international organisations to ensure synergies and maximise impact. More information: OECD InItIatIvE for POlICy DIalOguE On Global Value Chains, ProduCtion transformation and development 1 OECD Development Centre 11 COMPETITIVE ECONOMIES

12 Making the most of natural resources for the benefit of all ///////////////////////////////////////////// A global alliance to promote the best use of resource wealth While depending on natural resources can hinder socio-economic development, resource abundance in itself is not a curse. On the contrary, it can open up opportunities for broad-based growth when appropriate policies and incentives are in place. Still, many producing countries are not reaping the benefits from the exploitation of their natural resource endowments. This is due to a combination of factors, including low direct employment generation, price volatility, rising exchange rates in export-driven economies, inefficient revenue management and spending, and corruption. The OECD Policy Dialogue on Natural Resource-based Development aims to help producing countries OECD members and partner countries alike share knowledge about how to best harness their resource wealth (oil, gas, coal, metals and minerals) for more inclusive development. By sharing country experiences and regularly engaging relevant stakeholders from industry and civil society, this policy dialogue aims to discuss effective approaches to create shared value and promote local development; manage revenues and stabilisation funds; getting better deals; and addressing the risks posed by corruption. An Expert Advisory Board composed of representatives of international organisations and institutions (e.g. International Monetary Fund, World Bank, World Economic Forum) has been established to catalyse efforts, promote effective collaboration, avoid duplication of work, fill the implementation gap and facilitate feedback and learning. More information: PoliCY Dialogue on natural resource-based development 1 12 OECD Development Centre COMPETITIVE ECONOMIES

13 Charting economic challenges and global opportunities ////////////////// Anticipating changes in the global landscape The first four reports charted the gradual movement of the centre of gravity of the global economy towards the east and the south. They focused on deepening social cohesion as this shift in wealth takes place, applying industrial policy for development, and boosting inclusive productivity growth in middle-income countries as a way to counter slowing growth in some developing and emerging economies. The 2017 Edition of Perspectives on Global Development focuses on international migration from the perspective of developing countries. It examines to what extent and how the shifting of economic activity to developing countries has affected migration patterns. The analysis highlights the many ways that international migration contributes to development, and recommends policies that can help improve the benefits of migration for countries of origin and destination as well as for migrants themselves. Future editions will continue analysing shifting global economic activities and their implications on living standards and policies. To this end, the Centre works on scanning and assessing global views, comparing the perspectives of OECD and partner countries on major global challenges and risks, and using foresight scenarios and their perspectives on the global governance system. More information: Perspectives on Global Development 2017 INTERNATIONAL MIGRATION IN A SHIFTING WORLD OECD Development Centre 13 NEW PERSPECTIVES FOR DEVELOPMENT

14 Private foundations can boost development efforts netfwd taps into foundations unique outlook and contribution Philanthropic foundations play an important role in sustainable development, not only in mobilising financial resources, but also as development actors in their own right. Until recently, however, official development agencies and foundations have followed parallel paths without much collaboration. Including foundations more strategically in development policy processes can reinforce their role as partners, rather than solely as financiers. The OECD Development Centre s Network of Foundations Working for Development (netfwd) aims to fill this gap, offering an innovative and informal forum for discussing policy and sharing knowledge. The traditional models of philanthropy are changing fast. Foundations are known for their advocacy and their role in raising awareness, but they also have the capacity to innovate and take risks. It is vital that the OECD tunes in to these developments and provides a dedicated dialogue space for these prominent development advocates from OECD member countries, emerging economies and developing countries. netfwd has a two-fold objective: to better position philanthropy in the policy agenda at the OECD and in other international forums; and to help foundations share their experiences of what works and what doesn t work on issues ranging from youth empowerment to performance-based funding and venture philanthropy. netfwd is taking its brokering and dialogue role one step further to help unleash the potential of public-private partnerships between governments and foundations through the new Accelerating Impact 2030 initiative. This initiative aims to bring together philanthropic foundations, governments and other committed partners to align their vision and pool their collective expertise and resources to accelerate achieving the Sustainable Development Goals. More information: ////////////////////////////////////////////// net FWD GLOBAL NETWORK OF FOUNDATIONS 14 WORKING FOR DEVELOPMENT OECD Development Centre NEW PERSPECTIVES FOR DEVELOPMENT

15 A private sector view of emerging economies //////////////////////////////////////////////////////////////// EMnet offers opportunities for frank discussions with policy makers Since 2007, the OECD Development Centre has been working with private sector players through the Emerging Markets Network (EMnet). EMnet is a platform for dialogue and networking between OECD-based multinationals and their counterparts from emerging markets, which fosters interaction between high-level officials, top executives from mature and emerging economies, and OECD experts. EMnet members discuss the business sector s contribution to socio economic development in emerging countries and developing economies. EMnet s closed-door senior-level meetings offer opportunities for frank and thought-provoking discussions, and provide valuable insights for all stakeholders driving growth in emerging markets. One meeting a year takes place in Beijing, jointly organised with the Chinese Ministry of Commerce. Three are held at OECD headquarters in Paris. EMnet organises one additional meeting in an emerging market region recommended by members of the EMnet Advisory Group (India in 2015). Throughout its existence, EMnet has proven a valuable tool for obtaining input from the private sector as well as disseminating OECD analysis to a high-level pool of corporate contacts from more than two dozen member companies. EMnet also proposes a wide range of services to member companies through privileged and customised access to the OECD s information resources and experts. More information: OECD Development Centre 15 NEW PERSPECTIVES FOR DEVELOPMENT

16 regions How can accomplish economic ///////////////////////// Gauging prospects for growth in Africa, Asia and Latin America The Development Centre monitors key economic and social developments in Africa and the Middle East, Asia, and Latin America and the Caribbean with a view to informing policy making by governments and their partners, supporting reform efforts and fuelling policy dialogue. The Centre s regional work contributes to the OECD regional programmes and initiatives. Its regional outlooks, which are at the core of this work, provide accurate, comprehensive and comparable data in and across regions. With the African Development Bank and the European Commission, the OECD Development Centre launched the African Economic Outlook in The United Nations Development Programme also joined the partnership. Since 2014, the report has covered all 54 African countries. Recent editions have focused on key aspects of Africa s structural transformation, such as youth employment, urban development or the role of entrepreneurs in industrialisation. The Economic Outlook for Southeast Asia, China and India, launched in 2010, analyses structural policy reforms in the member countries of the Association of Southeast Asian Nations and addresses relevant economic issues in China and India. The latest editions of this Outlook focus on narrowing development gaps, the middle-income trap, strengthening institutional capacity and addressing energy challenges. Since its launch in 2007, the Latin American Economic Outlook has focused on areas of high relevance such as fiscal policy, migration, the role of the middle class, education, skills and innovation, and the development partnership between Latin America and the Caribbean and China. Since 2012, the Latin American Economic Outlook has been co-authored and co-published with the United Nations Economic Commission for Latin America and the Caribbean, and the Development Bank of Latin America. The Revenue Statistics report is a second important pillar of the Centre s regional work. Building on its Revenue Statistics in Latin America, the Centre launched Revenue Statistics in Asia and Revenue Statistics in Africa. The Centre builds on strategic partnerships developed with partner governments and regional organisations, including, among others, the African Development Bank, the United Nations Development Programme, the Economic Commission for Latin America and the Caribbean, the Latin American Development Bank, the Ibero-American General Secretariat, the Inter-American Development Bank, the Asian Development Bank, the ASEAN+3 Macroeconomic Research Office, and the Association of Southeast Asian Nations Secretariat. More information: OECD Development Centre REGIONAL AND NATIONAL ANALYSIS

17 Offering new pathways to development ///////////////////////////////////////////////////// National-level analysis provides powerful policy tools OECD Multi-dimensional Country Reviews (MDCRs) provide countries with actionable policy recommendations and support to implement effective development strategies for inclusive and sustainable growth. MDCRs identify and analyse binding constraints and development bottlenecks to deliver policy recommendations based on a country s pre-existing and potential capabilities. The methodology builds upon quantitative economic analysis and qualitative approaches, including foresight and participatory workshops, incorporating actors from the public and private sector, civil society, academia as well as experts across the OECD. MDCRs are implemented in three distinct phases: initial assessment, in-depth analysis and implementation support. A phased approach allows for a progressive two-way learning process and culminates in a practical strategy that transforms recommendations into concrete actions. In phase I, an initial assessment identifies the core constraints to realising the country s development vision. Phase II brings in key OECD expertise as well as knowledge from other countries to develop policy recommendations. Phase III, from analysis to action, transforms policy recommendations into a country-led program of implementable actions with a scorecard for tracking progress. The MDCRs incorporate rigorous benchmarking and measurement metrics with strategic foresight, combining the OECD s Well-being and Inclusive Growth frameworks with structural economic analysis. Throughout all phases, MDCRs seeks to facilitate governmental learning and strengthen capacity. The reviews build upon existing expertise across the OECD and are conducted in close co-operation with partner institutions. The experiences built by the OECD and partner countries through the MDCRs suggest that they are well-suited to support countries in achieving the Sustainable Development Goals (SDGs). Like the SDGs, MDCRs are based on a holistic understanding of development as strengthening a society s capabilities to sustainably translate monetary, human and natural resources into well-being outcomes for its citizens. Multi-dimensionality incorporates both the objective of development and the identification of relevant policies to advance development. Just as the SDGs were developed through an inclusive and participatory process, MDCRs seek to place citizens at the centre of the analysis. The analytical framework used in the MDCRs maps well to the 17 SDGs, which cover development outcomes as well as the underlying capabilities required to deliver on them. The MDCRs can support countries in prioritising SDG targets in line with the country s model of development and in developing actionable strategies to achieve the SDGs. More information: OECD Development Centre 17 REGIONAL AND NATIONAL ANALYSIS

18 Forums for policy dialogue offer a wide range of views A chance to exchange experiences and launch new initiatives /////////////////////////////////////// The Global Forum on Development is an annual event launched in It is organised jointly by the Development Centre and the OECD Development Cooperation Directorate. It provides an opportunity for high-level policy makers and development stakeholders, as well as interested members of the public and the press, to exchange perspectives, and explore policies conducive to more inclusive societies and well-being. International Economic Forums for Africa, and Latin America and the Caribbean each attract high-level representatives from governments, international organisations, the private sector, civil society, foundations, think tanks and the media. They gather to discuss economic performance and major challenges such as adopting trade, monetary and industrial policies that favour inclusive growth and structural transformation. The forums are organised by the Development Centre in collaboration with a wide range of multilateral organisations and partner countries. More information: Engaging with the public to enhance understanding of global development challenges Communication is central to building support for development, giving citizens in donor or developing countries the information they need to hold their governments accountable. Launched in 1988, the OECD Development Communication Network (DevCom) is the only international forum where development co-operation communicators discuss issues and co-ordinate strategies to engage with the public and inform public opinion. DevCom brings together the directors of public affairs and communication from the foreign and development ministries, the official agencies of the OECD Development Assistance Committee, and the emerging donors and multilateral institutions, such as the European Commission, the United Nations Development Programme, the World Bank and regional development banks. DevCom members exchange experiences, share good practices, engage in peer learning and shape thinking on how effectively to raise public awareness and support for development co-operation. More information: 18 OECD Development Centre REGIONAL AND NATIONAL ANALYSIS

19 DEV Talks The OECD Development Centre DEV Talks series aims at nurturing the debate on subjects at the crossroads of economic growth and well being. Through these sets of meetings, the Centre engages with individual partners and organisations through the exchange of fresh perspectives and intellectually-provoking ideas. The series was rolled out in October 2014, featuring topics based on a Members demand-driven approach. More information: Development Matters The OECD Development Centre, the Development Co-operation Directorate and the Sahel and West Africa Club jointly manage Development Matters. As the development cluster s consolidated blog platform, Development Matters fosters open and informed discussion on current development opportunities and challenges. It adds to the views about development in a comprehensive and coordinated way by bringing together diverse and expert voices from across the OECD, as well as from governments, academia, the private sector and civil society in developing and OECD countries. More information: Maddison Lecture The Lecture Series on Development in honour of Angus Maddison was launched in 2012, on the occasion of the OECD Development Centre s 50th Anniversary, and has since become a recurring event of the Centre s Development Week. It aims to commemorate the legacy and memory of Angus Maddison, a renowned scholar on quantitative macroeconomic history and one of the founding fathers of the OECD Development Centre whose work has greatly influenced the development policy debate. More information:

20 FIND OUT MORE Connect with us on social media Twitter.com/OECD_Centre SIGI Contact us + 33 (0) (OECD Switchboard) Media Contact: + 33 (0) / dev.media@oecd.org dev.contact@oecd.org