Tackling the economic and financial crisis
The OECD began by adjusting its economic forecasting and analysis work to address topical issues and report on the latest short-term economic developments. The OECD Economic Outlook Interim Report was published on 31 March 2009. The Report presents updated macroeconomic projections for the years 2009 and 2010 for the G7 countries, the euro area and all OECD countries.
In this Report, and in the Economic Surveys on each OECD member country, the Organisation’s economic analysis work also focuses on the effects of national stimulus plans and the econometric evaluation of their short- and medium-term impact.
The OECD has also refocused the entire work of its Committees in order to develop a multidimensional reflection on the origins of the crisis and issue recommendations for governments. This new work programme based on a document entitled “Strategic Response to the Financial and Economic Crisis” resulted in a first Interim Report that presents OECD recommendations in both the financial and economic areas.
This work aims in particular to identify policies in terms of information, regulation, governance and taxation designed to prevent a new financial crisis from occurring.
The OECD also issues recommendations on fiscal policy. It advocates incorporating into stimulus programmes structural policies likely to enhance long-term growth in terms of infrastructure, labour market training, and tax relief for low-income workers. The Organisation further calls for supporting innovation as an essential engine of growth and stepping up efforts relating to sustainable development and green growth. Finally, it warns against the consequences of yielding to protectionist trends, both commercially and in terms of international investment.
The OECD also works in consultation with the other intergovernmental organisations in the framework of the reflection on the new global economic and financial architecture. The Organisation’s work on corporate governance, market openness and international investment is an important contributive element in this reflection. As part of the preparation of the London Summit of 2 April, the G20 asked, in particular, for a contribution from the OECD on the issues of tax transparency and tax co-operation, given that the existence of “tax havens” jeopardises efforts to promote improved regulation of global finance.
The OECD thus provides its expertise to work out a new international financial framework. It also maintains a regular dialogue with the other major institutions like the World Bank, the International Monetary Fund and the World Trade Organization with a view to improving co-ordination between these various institutions in addressing the crisis and to enhancing global economic governance.