SMEs and entrepreneurs play a key role in national economies around the world, generating employment and income, contributing to innovation and knowledge diffusion, responding to new or niched demands and social needs, and enhancing social inclusion. However, SMEs are often more affected by business environment conditions and structural policies than larger firms.
This report presents comparative evidence on SME performance and trends, and on a broad range of policy areas and business environment conditions that are important for small businesses. The analysis takes into account the multi-dimensionality of SME policy objectives and the significant heterogeneity of the SME population, within and across countries. Data and indicators on framework conditions are complemented with information on recent policy trends in OECD countries. This publication addresses a growing demand by governments for tools to monitor the business environment for small and medium-sized enterprises, and benchmark the effectiveness of policies in creating appropriate conditions for them to flourish and grow.
India’s economy continues to grow at an impressive rate, with projected annual GDP growth of 7.5% in 2017-18. India will thus remain the fastest-growing G20 economy. Unprecedented growth in exports in services since the 1990s has made India a global leader in this sector. Inflows of foreign direct investment (FDI) grew at three times the annual world average rate in the last decade, reflecting the success of efforts to attract international investment and gradually loosen restrictions to foreign investment. India’s economic successes are being translated into increased well-being for its population. As GDP per capita has more than doubled in ten years, extreme poverty has declined substantially. Access to education has steadily improved, and life expectancy has risen. Multiple opportunities present themselves for India, and the right mix of policies is needed to take advantage of them. India has made advances in integrating in global value chains and developing a competitive advantage in fields such as information and communication technology. Now is the time to secure continued progress by boosting competition and further lowering barriers to trade and investment. Looking to the future, it will be vital to fully tap into the potential offered by India´s young population. This means investing in the large numbers of young people entering the labour market. Likewise, the rapid pace of development must be matched with the upgrades to infrastructure necessary to support it.
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.
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Citizens in many countries are expressing dissatisfaction with how they believe trade, technology and immigration are affecting their daily lives. While much of this discontent can be traced back to the global economic crisis, its root causes are more complex. What can be done at the Global, European and German level?
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.
Recent years have witnessed a constant rise in the spread of ICT (information and communication technologies) infrastructure and a growing demand for ICT goods. The production of these goods is knowledge intensive and the industry relies extensively on intellectual property (IP) rights. This strong and growing demand for ICT goods, and their IP dependence, makes them an attractive target for counterfeiters. This study looks at the trade in counterfeit ICT goods, including the size of the trade, the main sources of fake goods, and the countries whose companies are most affected.
OECD is contributing to AMIS, an agricultural market information system aimed at addressing food price volatility through more timely, accurate and transparent information on global food markets.
Statistics on the role of these different types of firms in Global Value Chains (GVCs) are essential to facilitate policy making and to provide insights in the nexus between international trade, international investment, and production. The OECD has therefore started a work-stream that extends the Trade in Value Added (TiVA) dataset by breaking down industries into new categories of firms, including SMEs and MNEs.
This publication examines how policy actors involved in cross-border co-operation contribute to the regional integration process in West Africa. It uses a pioneering methodology, known as social network analysis, to visualise the formal and informal relationships between actors involved in cross-border policy networks, showing that borders have notable and diverse impacts on exchanges of information and the relative power of networks. The report then analyses a range of regional indicators of co-operation potential, visually demonstrating that borders can also affect the ability of sub-regions within West Africa to develop cross-border initiatives in a number of ways. Combining these two analyses with the perceptions of regional policy makers as to which border areas they consider as priorities for regional integration, the publication concludes with the analytical foundations for more effective place-based policies that can enhance cross-border co-operation in West Africa.
An estimated 22% of the world’s largest firms are now effectively under state control, this is the highest percentage in decades. These firms are likely to remain a prominent feature of the global marketplace in the near future. The upsurge of state-owned enterprises (SOEs) as global competitors has given rise to concerns related to a level playing field. Some business competitors and observers claim that preferential treatment granted by governments to SOEs in return for public policy obligations carried out at home can give SOEs a competitive edge in their foreign expansion. The OECD has taken a multidisciplinary approach, looking at the issue from the competition, investment, corporate governance and trade policy perspectives. The report aims to sort fact from fiction, and develop a stronger understanding, based on empirical evidence, on how to address growing policy concerns with regard to SOE internationalisation. The report concludes that although there is no clear evidence of systematic abusive behaviour by SOE investors, frictions need to be addressed, in view of keeping the global economy open to trade and investment.