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Recent reforms have improved Mexico’s overall budget framework, helping it to withstand the current global crisis, but further reforms are needed to ensure long-term fiscal sustainability, according to the OECD Secretary-General.
In the context of the economic crisis, reforms can become an effective vehicle for sustained recovery but governments must find the right balance between an effective regulatory and institutional framework and minimising unnecessary red tape. Moreover, governments cannot reset the economy on their own and the contribution of the women and the private sector will be crucial, according to the OECD Secretary-General.
Speaking at the governance forum of the third MENA-OECD ministerial meeting, Mr. Gurría noted that sound regulations and efficient public services are essential for better functioning private markets. He added that governments should ensure integrity, transparency and accountability by modernizing legal frameworks and encourage a more inclusive economy, an economy empowering women.
Opening this event in Marrakesh, Angel Gurría underlined that the economic crisis has not spared the MENA region, with a significant economic contraction and a severe impact on the labour markets. According to the Secretary-General, the MENA-OECD Initiative can serve as a model for effective co-operation in building the global economy of the future.
OECD member and non-member governments are actively looking for ways to facilitate and improve the relationships among levels of government. These relationships lie between the central and sub-national levels, as well as among peer levels.
In his annual speech to the Centres of Governments network, Mr. Gurría reminded that this group is becoming more and more important as decision makers in OECD countries and beyond are being confronted by a combination of policy challenges of unprecedented size and complexity. According to the OECD Secretary-General, these challenges can only be addressed successfully if governments act together and learn from each other.
At the G20 summit in London on 2 April, governments pledged to do all they can to restore confidence, growth and jobs; repair and strengthen the financial system; promote global trade and investment and reject protectionism; and build an inclusive, green and sustainable recovery for all. The OECD worked behind the scenes with G20 governments and other international organisations to help achieve this successful outcome and further our
Mr. Gurría underlined that business ethics should be at the center of any new road-map for the global economy. Markets should not only be more stable, but morally acceptable as well. He said that it is time to reunite ethics and economics through a solid, transparent and updated set of rules.
This working paper argues that reform and change are generally used as interchangeable concepts but that is not always appropriate as reforms do not always produce change and changes are not always the product of reform efforts.
Governments which are successful at reforming empower their people to make the most of globalisation, creating a favourable environment for education, for business, for innovation and for sustainable development, according to Mr. Gurría.