Some 15 million people have joined the ranks of the unemployed in OECD countries since the end of 2007. Unemployment has already reached a record high of 8.5% as a result. Without the right policies and if the recovery fails to gain momentum, OECD unemployment could approach 10% next year. That would mean 57 million people out of work-roughly equivalent to the population of some G8 countries!

The global economy today is facing difficulties like we have not seen for at least half a century.  

Angel Gurría, Secretary-General of the OECD

When leaders of government, international organisations and civil society from around the world gather for critical discussions at the OECD summit meetings in Paris this June, one question will dominate the agenda: Is enough being done to restore confidence and long-term growth, and break the grip of the worst global crisis of our times?

Speech by Philippe Marland, Ambassador, Permanent Representative of France to the OECD, delivered at the OECD on 18 March to mark the 2009 Journée internationale de la Francophonie, a day dedicated to the French-speaking world.

The world economy remains gripped in the deepest and most widespread economic crisis in modern times. The latest update of the OECD Economic Outlook expects GDP to plummet by an average 4.3% in the OECD area in 2009, and world economic activity to shrink by 2.7%.

Can 2009 bring a ray of light to lift the gloom and end the severest financial and economic crisis in decades?

The OECD Economic Outlook issued end-2008 sees some 21 of 30 member countries already in or heading into a recession that could last a year. Business investment will contract by over 5%, and unemployment could rise by at least 8 million by 2010. This social crisis is affecting families and communities across the planet, with emerging and developing economies suffering too.

OECD will work with governments in a two-strand approach to develop policies for tighter financial market oversight and risk management, and for economic recovery, Secretary-General Angel Gurría has announced. The plan will form part of a comprehensive contribution to the G20’s Action Plan agreed in mid-November, he said.

The financial crisis sweeping world markets is the worst since the Great Depression. While the crisis is biting into the real economy, hard lessons are being learned. How should policymakers move forward, particularly as room for manoeuvre is being squeezed?

In half a century the OECD Model Tax Convention has established itself as a model for international business. Here is how.

Today, barely more than a decade after its first commercial incarnation, it is difficult to think of a policy domain that is not affected by the Internet.

The Internet and the constellation of information technologies it connects are viewed as essential ingredients in addressing some of the world's most pressing policy issues: sustainable and increasing economic growth, ageing societies, environmental management, energy efficiency, the eradication of poverty, and many more. The implications for economic and social development are far-reaching and profound, including for the next several billion users.

See Joong Choi
Chairman, Korea Communications Commission

In 1998, the Internet was emerging as a major new medium for communications. OECD ministers gathered in Ottawa, Canada, and established policies promoting online activities in areas such as privacy, security, taxation and consumer protection. Since the Ottawa ministerial, the global Internet economy has grown remarkably.

2008 will be a decisive year in the battle against climate change. Hopefully, it will see us forge an international consensus so an agreement can be reached in Copenhagen in 2009 that will allow us to build on the Kyoto Protocol.

With the world economy today experiencing turbulence on a number of diverse fronts, OECD countries are preoccupied with meeting these challenges.

The 2008 OECD Ministerial Council Meeting and Forum, the high points of the OECD calendar, could not be more timely. The issues we will be dealing with and the policy responses we will discuss should pave the way for a better world economy. Christine Lagarde, the minister of economy, finance and employment of France–the OECD’s host country–will chair the ministerial meeting.

A 50% rise in global greenhouse gas emissions by 2050, higher temperatures, with more droughts and storms harming people, crops and buildings; more animal and plant species becoming extinct under expanding farmland and urban sprawl; dwindling natural resources; a billion more people living in water-stressed areas by 2030, with more pollution, disease and premature deaths ahead.

Europeans, particularly women, generally work fewer hours than their US counterparts. How does this difference help explain the transatlantic gap in incomes?

If Shakespeare was right, and the world is a stage, then “Gathering Storm” could be the title of the play as we enter 2008. With a US economy flirting with recession, the euro area losing stamina under a strong euro, a barrel of oil close to $100, international food and commodity prices reaching record levels and climate change intensifying, it looks like we are heading into a turbulent zone.

The history of human progress is also a history of innovation, and OECD countries have been rediscovering what this means for the global economy. Consider the US. For two decades the world’s largest and most advanced economy has been driving forward the frontiers of technical progress. Yet whether in information technology, pharmaceuticals or biotechnology, the US knows it must innovate to stay in front.

As political leaders gathered in Heiligendamm in northern Germany this June and before that at the OECD in Paris in May, the concern on everyone’s minds was the future shape of the global economy.

The global economy is into its fifth year of growth. The expansion enjoyed in the OECD area has benefited from the dynamism of large non-member economies, especially in Asia. Globalisation has helped these countries raise living standards and reduce poverty. Indeed, the participation of China, India and other non-OECD nations in global economic flows has been increasing at a remarkable pace, now representing around half of total world GDP (measured by purchasing power parities), about 40% of world exports and nearly half of the world’s energy consumption. They have become massive outward investors, too.

On 1 January, Germany took over the presidencies of the European Union and the G8. The last time our country had this dual-chair role was in 1999. Our basic goal this year is to address global challenges and to tap fully the opportunities of globalisation.

The interests and concerns of the EU and the G8 are by no means identical, but there are several areas where we can take the opportunity of our dual presidency to build useful synergies.

The OECD Anti-Bribery Convention is ten years old this year. In that short time it has established itself as the first truly effective global instrument to fight corruption in cross-border business deals. But despite enormous advances, the fight against bribery must continue. And the key to further progress depends on the resolve and willpower of OECD member countries.

Energy has moved to the top of our policy agendas, and with good reason. First, there is the price of oil, which though easing a little in recent months, remains historically high. This has pushed up costs for producers and consumers alike.

I am in contact with leaders and officials both from the world’s most developed nations and from developing countries. When the Doha Development Round talks collapsed in July, I was struck by the gap between what officials say when they meet at the OECD in Paris and how they define their positions in the WTO talks in Geneva.

It is a great honour to have been given the mandate to lead the OECD following Donald Johnston’s great legacy. We are facing a number of pressing challenges, of which I will mention just a few. Starting with the global economy, I would note that although the economic outlook for this and next year is rather positive, there is no room for complacency.

The euro area has recorded a disappointing economic performance over recent years. Its per capita income grew on average by 1.3% between 2000 and 2005, compared to 1.9% in the US over the same period.

The OECD Ministerial Council Meeting and the Forum are major opportunities for member countries and other emerging economies to exchange views on global economic issues, share best practices and discuss policy priorities. Our central theme this year is “Delivering prosperity” and our focus is on the wide-ranging reforms required to make our world a safe and thriving place for its citizens. Chair's summary, now available.

Even a few short decades ago, power and politics seemed to be played out only at election time, when politicians would consult the people, then return to government or opposition to take care of the affairs of the state. The next election was barely on their minds. Citizens, whether through trust or ignorance, generally would ask no more of them than that.

“Nothing exists until it is measured”. This keen observation by the Danish physicist and Nobel laureate, Niels Bohr, has become something of a leitmotiv in the statistics world, but it bears some scrutiny.

Just a few days ago, an article appeared in a major Canadian newspaper deploring the exodus of qualified doctors and nurses from African countries struggling to contain disease, especially AIDS. These highly skilled professionals are being attracted by opportunities in more developed countries, but while they may look forward to better lives, the communities they leave suffer an important loss.

The value of shared learning and mutual understanding: this was a key message of the OECD Health Ministers Meeting last May. The agenda showed the myriad areas where economic analysis can enrich policy design: from quality, efficiency and cost-effective provision, to the economics of prevention and the incentives for innovation.

Demography and climate change: as I read the literature and consult the experts, I am increasingly convinced that many of this century’s important challenges, especially for our children and grandchildren, will flow from these two phenomena. Let me sketch some scenarios and questions with respect to each.

Investment in health is not only a desirable, but also an essential priority for most societies. However, our health systems face tough and complex challenges, in part derived from new pressures, such as ageing populations, growing prevalence of chronic illnesses, and intensive use of expensive yet vital health technologies.

This is the year of development! The Monterrey Summit on Financing for Development, the OECD Ministerial starting 15 May, the African Initiative of the G8 Summit and the World Summit on Sustainable Development in Johannesburg: all are largely focused on poverty reduction and effective development assistance. This 10-point strategy could help:

Over several months I have participated in many discussions with experts from all over the world on the issue of the new economy. The question usually raised: is there a new economy? The consensus answer seems to be “perhaps”. There may be an element of media hype about it all, but there is also substance behind the headlines. As OECD chief economist, Ignazio Visco, points out in this special edition of the OECD Observer, trends are finally emerging in the economic data that the new economy might help to explain, especially in the area of productivity.