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Closing the income gap with the OECD and enhancing distribution of growth requires reforms in many fronts. Better functioning labour and product markets and investment in skills and infrastructure would boost productivity, while well-designed social and education policies can reduce inequalities
This paper tests the hypothesis that, by giving people more voice in the government decision-making process, fiscal decentralisation fosters social capital, measured in terms of interpersonal trust.
In the 2000s, Turkey has enjoyed rapid catching–up. This was possible despite the adverse business environment, as the semi–formal and informal economy had a significant contribution to the expansion of the private sector.
Despite major progress over the last decade, more reforms are needed to meet Indonesia’s medium-term objectives for growth and poverty reduction. The Survey reviews the main challenges in the areas of energy subsidies, infrastructure, labour markets, education, health care and social protection.
Indonesia has made considerable progress over the years in improving the social conditions of its population, especially among disadvantaged groups, not least by raising government spending and strengthening social protection programmes.
Portugal has made significant progress in modernising its economy over recent years but the country needs to further pursue structural reforms to restore competitiveness and thus move to more dynamic and sustainable growth.
The South African economy is recovering from the crisis. Nevertheless deep structural reforms are necessary. The already strong macroeconomic policy framework should be further strengthened to resist excessive real appreciation.
Chile has made impressive progress in educational attainment. Yet, despite recent improvements, outcomes, as measured by PISA results, still need to catch up with OECD standards and equity problems should be addressed.
Israel’s education system produces many tertiary graduates but there are wide gaps across society and core skills at secondary school are weak, as discussed in this working paper.
Despite some best-practice policies, challenges remain in raising employment and lowering poverty, particularly among Arab-Israeli and Ultra-orthodox households, as discussed in this working paper.