New sources of growth

NEW: The Internet of things
Over 50 billion devices could be connected to each other in 2020 according to some estimates. This “Internet of Things” will radically alter our world through smart connectivity; save time and resources; and provide opportunities for innovation and economic growth according to a new OECD report. Machine-to-Machine Communication: Connecting Billions of Devices examines new technology (the drivers behind connecting devices to the Internet); new markets (user and business demands); and new policies (what governments can do to promote this new source of growth).
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Governance: Innovative Urban Financing can help cities to grow green and generate jobs

Cities are ready to lead efforts to green the economy, concluded participants in the OECD Roundtable of Mayors and Ministers in Chicago on March 8th, 2012. However, their efforts are hampered by huge investment needs and severely constrained public finances, so cities are facing a double challenge: to green existing urban finance and to develop new financing mechanisms.

Trade for growth

The OECD’s latest merchandise trade statistics provide further proof of tough times in the world economy, showing falls of 0.2% in imports to, and of 1.2% in exports from, G7 and BRIC countries in the fourth quarter of 2011. But the evidence shows that boosting trade is one of the surest drivers of sustainable growth.

Massive infrastructure investment needed to meet future demand

Air passenger traffic could double, air freight could triple, and port handing of maritime containers worldwide could quadruple by 2030. But most of the current infrastructure could not handle even a 50% increase in demand. USD 53 trillion of investment, equivalent to an annual 2.5% of global GDP, will be needed to meet demand over the coming decades.

Environment: Act now or face costly consequences

As countries struggle with the immediate challenges of stretched public finances and high unemployment, they must not neglect the longer term. Action needs to be taken now to prevent irreversible damage to the environment, according to the OECD Environmental Outlook to 2050.

Rural development and poverty reduction: agriculture isn’t everything

Agriculture can contribute to development and the fight against poverty, but there is no evidence that it can win on its own. A strategy for strengthening rural incomes should emphasize three development pathways for farm households: improving competitiveness within agriculture; diversifying income sources among farm household members; and leaving the sector for a better paid job.

Innovation: The threat of falling patent quality

The quality of patent filings has fallen dramatically over the past two decades. This reduces the potential for breakthrough inventions, according to the OECD’s Science, Technology and Industry Scoreboard 2011.

Making development work better


With some two billion people living in poverty, without clean water and sanitation or access to schooling and healthcare, it's clear that development has to work better to improve people's lives.

 

Green growth strategy

Green growth

What is a green growth strategy and why do we need one? Nathalie Girouard, the Green Growth Strategy Co-ordinator, replies.

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Environmentally-related tax revenue in the OECD 

While the number of environmentally-related taxes has increased in recent years, their revenues have decreased slightly in relation to GDP.

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Understanding the issue

We know the ingredients for growth – capital, labour, innovation, etc. – but we have to invent new recipes to combine them so that future generations can continue to have a decent standard of living while safeguarding natural resources.

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