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This year’s OECD Forum is focusing on ‘Balancing Globalisation’ and the necessary reforms in order to address global imbalances and make our world a better and more prosperous place to live in.
There is consensus that we need to implement such policies that will stimulate growth and employment, in order to ensure economic stability and improve economic performance. Issues like education, investment in innovation and research, social cohesion, trade, financial markets, energy supply, environmental protection should be of high interest for us to exchange views on and review best practices.
We have invited people from many countries and several sectors, politicians, journalists, businessmen, representatives of trade unions, academics, people from the banking sector, scientists, non-governmental organizations in order to have as many different views as possible on the issues we are going to discuss.
Globalisation should not be seen as a threat, especially for job security, but rather as a challenge for a more prosperous world. We live in a world where several imbalances prevail – fiscal, current account, labor market imbalances – some of them even not sustainable over the medium term. The large external deficits of some countries combined with the surpluses of their trade partners and of the oil-producing countries can become a threat to global economic stability. So, we have to tackle these imbalances in an effective manner that would not create further problems in our economies.
The integration into the global economy of low-wage emerging market economies increases pressures on OECD countries to make structural adjustments at home. As emerging market economies take a bigger share of world markets for goods and services, the brunt of competitive pressures is on labour-intensive sectors. One effect is the outsourcing of jobs to emerging market economies.
However, globalization also has positive effects. Companies are able to re-main competitive by improving productivity. Consumers benefit from cheap labour-intensive goods from emerging economies. As a result, overall, globalization does not necessarily lead to lower real wages in OECD countries. Indeed, it can contribute to maintaining or even increasing the purchasing power of people in OECD countries.
We, in the European Union, aim at increasing the growth potential and fighting unemployment and social exclusion in a framework of sustainable development. These are the main targets of the relaunched Lisbon strategy. We mainly focus on: sustainable fiscal discipline, creating a more business-friendly environment, promoting research, development and innovation, modernizing labor markets, enhancing social cohesion.
The OECD itself has an important role to play in our efforts to tackle problems and find viable solutions with the largest possible social consensus. This requires the Organisation both to improve its functioning and to enhance its working relations with other countries around the world.
Most of us live in knowledge based economies. Knowledge embodied in intellectual assets is becoming crucial for firms’ and countries’ economic performance and growth. We have to ensure that their beneficial effects are spread throughout the whole economy, by safeguarding the balance between legal control and diffusion of knowledge at the same time.
Recent rises in oil prices make the issue of increased security of energy supply combined with environmental sustainability even more urgent to discuss and resolve.
Regarding the Doha Development Agenda negotiations, we must remain optimistic that they will be concluded successfully by the end of the year. A balanced and viable outcome in DDA is possible, providing prosperity to the global economy, but mainly to the poorest countries of the world.
Financial markets have developed into a crucial factor for global economic performance. Their function differs significantly across countries in view of size, structure, competition, regulatory frameworks. We need to enhance effective competition, abolish existing barriers and safeguard protection of investors at the same time.
Within Europe, the South Eastern region presents special interest. A new group of fast growing, emerging economies with a strong dedication to convergence with the rest of Europe is exhibiting an impressive dynamism and a will to exploit its critical geopolitical position between the East and the West, the North and the South. The neighborhood is developing into a hospitable and promising business location. It provides financial stability, a skilled labor force, a friendly business environment and an enjoyable climate.
All these issues compose the major challenge facing us now, which is to help public opinion to understand and accept the necessary policy shifts. In order to fully utilize the advantages of globalization. In order to deliver a more prosperous world. This requires political courage, commitment and international coordination of policies. We have no time to spare, we need to act.
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