The OECD is concerned about the slowdown in the pace of reforms in recent years and believes that the improved economic situation should be used to relaunch structural changes and thus combat growing inequalities.
In his report "Bet on growth" published to coincide with the G20 finance ministers meeting in Buenos Aires, lThe Organisation for Economic Co-operation and Development (OECD) warns that "there is little evidence that the pace of reforms will pick up imminently."
The international organisation notes that in 2017 the percentage of measures adopted on the recommendations it makes to countries fell again compared to the two previous years, which had already seen a decline.
He cites the case of some countries that did carry out "important reforms" last year, in particular France and its new labour code, Japan and the improvement in access to childcare, Argentina and its tax reform, or the creation in India of a goods and services tax.
The organisation believes that the pace of economic growth should be similar to that before the crisis (it is expected to reach almost 2018% globally in 4) in order to carry out "structural reforms".
Above all because although el unemployment rates have accelerated in recent months, but this "has not yet been translated into a significant increase in wages in general" following the stagnation of living standards suffered by "a significant percentage of the population in many OECD countries."
The Commission therefore calls on policymakers to "find ways to overcome the political resistance to reforms that seek to overcome well-known obstacles and lay the foundations for their economies to make the most of the digital transformation underway."
One of its main recommendations is to increase people's skills in digital technologies. and, in the longer term, changing educational systems so that workers acquire the necessary skills in this area, including facilitating access to training for the most disadvantaged groups.
Another problem identified is that of "the growing productivity gap"ad" between leading companies and other laggards, whose capacity to invest in new technologies is diminished.
To increase investment incentives, his advice is reduce regulatory barriers and obstacles to foreign direct investment.
On these points, he points out that administrative and regulatory barriers to entering the services sector persist in France, Germany and Spain, and significant obstacles to foreign investment persist in Mexico, Indonesia and Russia.
EIn the field of taxation, the OECD is committed to broadening the tax base by eliminating legal loopholes, in particular "those that primarily benefit people with high income levels or large assets."
Also by reducing tax rates on easily transferable income such as work or capital, and at the same time increasing the tax burden with inheritance tax or on real estate.
#OECD Secretary-General @A_Gurria launches #GoingforGrowth with Argentina's @NicoDujovne at the #G20Argentina. Read the full report: https://t.co/ghbyMfaeYz pic.twitter.com/kYyCO6M1L1
— OECD Economics (@OECDeconomy) March 19th 2018
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