Reports

There is considerable regional variation in incomes and poverty in the Czech Republic and gaps have grown over time. With the highest number of municipalities per head in the OECD, subnational government is very fragmented and the resulting lack of capacity at the local level reduces the quality of public services and impedes the uptake of effective development projects. This paper discusses various policy options to address the challenges faced by Czech subnational governments and proposes reforms to enhance their effectiveness. Mergers of municipalities would be an obvious way towards greater integration, but this may be politically difficult. Mandating inter-municipal co-operation over a legally defined set of public services can be an alternative way of improving efficiency and the quality of service delivery. Tweaking the tax sharing system to disincentivise small size of municipalities and to make subnational governments more autonomous could be steps towards higher efficiency. Improving and consolidating the delivery of education and health services at the local level is also needed in the context of demographic change.

Social protection systems use a range of entitlement criteria. First-tier support typically requires contributions or past employment in many countries, while safety net benefits are granted on the basis of need. In a context of volatile and uncertain labour markets, careful and continuous monitoring of the effectiveness of income support is a key input into an evidence-based policy process. This paper proposes a novel empirical method for monitoring the accessibility and levels of safety net benefits. It focusses on minimum-income benefits (MIB) and other non-contributory transfers and relies on data on the amounts of cash support that individuals in need receive in practice. Results show that accessibility and benefit levels differ enormously across countries – for instance, in 2015/16, more than four out of five low-income workless one-person households received MIB in Australia, France and the United Kingdom, compared to only one in five in Greece, Italy and Korea, three countries that have since sought to strengthen aspects of safety-net provisions.

A common urban mobility plan for Prague and its metropolitan region as well as the creation of an integrated transport system coordinated by a central transport body are the main assets Prague can leverage to enhance accessibility. However, weak links to land use plans, the lack of enforceability of the mobility strategy, the absence of a transport component in the urban renewal strategy, and the high level of administrative fragmentation of the metro area limit the impact of the transport network in facilitating access to jobs and services. This paper aims at drawing policy lessons from Prague’s mobility strategy and suggesting recommendations that could improve its effectiveness in enhancing accessibility.

This country policy profile on education in the Czech Republic is part of the Education Policy Outlook series. Building on the first policy profile for the Czech Republic (2013), it offers a concise analysis of where the education system stands today in terms of strengths, challenges and ongoing policy efforts, and how this compares to other systems. The profile brings together over a decade’s worth of policy analysis by the Education Policy Outlook, as well as the latest OECD data, relevant thematic and country-specific work and other international and national evidence. It also offers analysis of the Czech education system’s initial responses to the COVID-19 crisis and provides insight into approaches to building greater responsiveness and resilience for the future

The COVID-19 crisis has had a profound impact on SME access to finance. In particular, the sudden drop in revenues created acute liquidity shortages, threatening the survival of many viable businesses. The report documents an increase in demand for bank lending in the first half of 2020, and a steady supply of credit thanks to government interventions. On the other hand, other sources of finance declined, in particular early-stage equity. This paper, a special edition of Financing SMEs and Entrepreneurs, focuses on the impacts of COVID-19 on SME access to finance, along with government policy responses. It reveals that the pre-crisis financing environment was broadly favourable for SMEs and entrepreneurs, who benefited from low interest rates, loose credit standards and an increasingly diverse offer of financing instruments. It documents the unprecedented scope and scale of the policy responses undertaken by governments world-wide, and details their key characteristics, and outlines the principal issues and policy challenges for the next phases of the pandemic, such as the over-indebtedness of SMEs and the need to continue to foster a diverse range of financing instruments for SMEs.

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' Stage 1 peer review report. This report reflects the outcome of the Stage 2 peer monitoring of the implementation of the Action 14 Minimum Standard by Czech Republic.

The design of intergovernmental fiscal relations can help to ensure that tax and spending powers are assigned in a way to promote sustainable and inclusive economic growth. Decentralisation can enable sub-central governments to provide better public services for households and firms, while it can also make intergovernmental frameworks more complex, harming equity. The challenges of fiscal federalism are multi-faceted and involve difficult trade-offs. This synthesis paper consolidates much of the OECD’s work on fiscal federalism over the past 15 years, with a particular focus on OECD Economic Surveys. The paper identifies a range of good practices on the design of country policies and institutions related strengthening fiscal capacity delineating responsibilities across evels of government and improving intergovernmental co-ordination.

This paper presents and discusses the general findings and key policy messages of the 2019 OECD Open, Useful and Re-usable data (OURdata) Index, and provides a detailed analysis of the results for each pillar and sub-pillar. Additionally, it assesses the main advancements and challenges related to the design and implementation of open government data (OGD) policies in OECD member and partner countries by comparing the results for 2019 with those of the 2017 edition. This policy paper contributes to the OECD work on the digital transformation of the public sector, including digital government and data-driven public sector and open government data.

This profile provides a concise and policy-relevant overview of health and the health system in Czech Republic as part of the broader series of the State of Health in the EU country profiles. It provides a short synthesis of: the health status in the country; the determinants of health, focussing on behavioural risk factors; the organisation of the health system; and the effectiveness, accessibility and resilience of the health system. This profile is the joint work of the OECD and the European Observatory on Health Systems and Policies, in co-operation with the European Commission.