People in many countries, especially advanced countries, are expressing growing discontent about globalisation. They feel that its benefits have accrued mostly to a small and already well-off segment of the population. In addition, many citizens are dissatisfied with the way economic integration has been advanced. They complain about too little transparency and too many conflicts of interests between policy makers and firms. Several of the negative effects feeding the discontent have more to do with technological change than with globalisation per se, but the two are closely intertwined. Moreover, the policies put in place to alleviate negative impacts of economic openness on some groups, industries and regions have not always worked as intended, and global rule-making has not kept up with reality. Given its many benefits, reversing economic integration is not a solution. Rather, we need to find ways to make it work for all. This report sets out what needs to be done to advance a fairer and more inclusive globalisation – at the global level, at the European level and within Germany.
Value Added Tax (VAT; also known as Goods and Services Tax, under the acronym GST in a number of OECD countries) has become a major source of revenue for governments around the world. Some 165 countries operated a VAT at the time of the completion of the International VAT/GST Guidelines in 2016, more than twice as many as 25 years before. As VAT continued to spread across the world, international trade in goods and services has also expanded rapidly in an increasingly globalised economy. One consequence of these developments has been the greater interaction between VAT systems, along with growing risks of double taxation and unintended non-taxation in the absence of international VAT co-ordination.
The International VAT/GST Guidelines now present a set of internationally agreed standards and recommended approaches to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade. They focus in particular on trade in services and intangibles, which poses increasingly important challenges for the design and operation of VAT systems worldwide. They notably include the recommended principles and mechanisms to address the challenges for the collection of VAT on cross-border sales of digital products that had been identified in the context of the OECD/G20 Project on Base and Erosion and Profit Shifting (the BEPS Project).
These Guidelines were adopted as a Recommendation by the Council of the OECD in September 2016.
Solving non-routine problems is a key competence in a world full of changes, uncertainty and surprise where we strive to achieve so many ambitious goals. But the world is also full of solutions because of the extraordinary competences of humans who search for and find them. We must explore the world around us in a thoughtful way, acquire knowledge about unknown situations efficiently, and apply new and existing knowledge creatively.
The Nature of Problem Solving presents the background and the main ideas behind the development of the PISA 2012 assessment of problem solving, as well as results from research collaborations that originated within the group of experts who guided the development of this assessment. It illustrates the past, present and future of problem-solving research and how this research is helping educators prepare students to navigate an increasingly uncertain, volatile and ambiguous world.
This annual flagship publication provides details of taxes paid on wages in OECD countries. It covers personal income taxes and social security contributions paid by employees, social security contributions and payroll taxes paid by employers, and cash benefits received by in-work families. It illustrates how these taxes and benefits are calculated in each member country and examines how they impact household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings. The publication shows average and marginal effective tax rates on labour costs for eight different household types, which vary by income level and household composition (single persons, single parents, one or two earner couples with or without children). The average tax rates measure the part of gross wage earnings or labour costs taken in tax and social security contributions, both before and after cash benefits, and the marginal tax rates the part of a small increase of gross earnings or labour costs that is paid in these levies.
The present report examines how governments use financial incentives to promote a better alignment between labour market needs, on the one hand, and the supply of skills, on the other. In doing so, it identifies: i) innovative models that countries may be interested in learning from; ii) best practice in the design and use of financial incentives; iii) framework conditions for their effective use; and iv) limitations and risks in the use of financial incentives.
This joint OECD and World Bank Group report, presented to G20 Trade Ministers in October 2015, focuses on the challenge of making GVCs more “inclusive” by overcoming participation constraints for SMEs and facilitating access for LIDCs. Results suggest that SME participation in GVCs is mostly taking place through indirect contribution to exports (rather than through direct exports), and that a holistic approach to trade, investment and national and multilateral policy action is needed to create more inclusive GVCs.
The report highlights the importance of ensuring access to ICT networks – in particular broadband – and stimulating innovation – in particular by enhancing the ability of SMEs to manage and protect their intellectual assets. At the same, the report underscores the importance of helping small firms scale up quickly, and to better integrate in GVCs by lowering barriers to the entry, growth and exit of firms. Countries should also avoid favouring incumbents over new firms.
This report analyses Philippine agricultural policy. Agriculture provides 30% of total employment in the Philippines and represents 11% of its Gross Domestic Product. The Philippines has had notable recent overall economic success, yet improving agricultural performance remains challenging. Productivity growth lags behind other Southeast Asian countries, and a number of policy distortions hinder progress. With agricultural land resources also under pressure from frequent natural disasters, rising population and urbanisation, the report offers a series of recommendations to improve the sector’s performance and its ability to adapt to climate change.
Job displacement (involuntary job loss due to firm closure or downsizing) affects many workers over their lifetime. Displaced workers may face long periods of unemployment and, even when they find new jobs, tend to be paid less and have fewer benefits than in their prior jobs. Helping them get back into good jobs quickly should be a key goal of labour market policy. This report is part of a series of reports looking at how this challenge is being tackled in a number of OECD countries. It shows that in New Zealand most displaced workers find a new job again, largely due to a strong economy and a highly flexible labour market. But many of them face large losses in terms of job quality and especially wages. And displaced workers facing difficulties in New Zealand are largely left on their own to find a new job, as the means-tested public benefit system only provides for people in need and employment services concentrate on helping people off benefit with limited focus on those not receiving a benefit.
Nine countries are participating in the review: Australia, Canada, Denmark, Finland, Japan,
Korea, New Zealand, Sweden and the United States.
Chapter 1. Job displacement in New Zealand and its consequences
Chapter 2 Easing the impact of economic restructuring on displaced workers in New Zealand
Chapter 3 Re-employment support for displaced workers in New Zealand who struggle to find a new job
This Tax Policy Study on Taxation and Skills examines how tax policy can encourage skills development in OECD countries. This study also assesses the returns to tertiary and adult education and examines how these returns are shared between governments and students. The study builds indicators that examine incentives for individuals and governments to invest in education. These indicators take into account the various financial costs of skills investments for individuals such as foregone after-tax earnings and tuition fees, as well as whether investments are financed with savings or with student loans. Costs borne by governments such as grants, scholarships, lost taxes, and skills tax expenditures are also accounted for. The indicators also incorporate the returns to skills investments for individuals and governments through higher after-tax wages and higher tax revenues respectively.
The purpose of a Tourism Satellite Account is to analyse in detail all the aspects of demand for goods and services associated with the activity of visitors; to observe the operational interface with the supply of such goods and services within the economy; and to describe how this supply interacts with other economic activities. The present volume, Tourism Satellite Account: Recommended Methodological Framework 2008, provides an updated framework for constructing a Tourism Satellite Account. It should permit greater internal consistency of tourism statistics with the rest of the statistical system of a country, as well as increased international comparability of these data.