Dear editor, Angel Gurría is right to argue that “subsidies … should target cleaner energy innovations and practices, and not distort or protect markets.” (No. 258/259, December 2006). Unfortunately, apart from a few billion dollars being spent on R&D, distortions and protected markets are exactly what we are witnessing in the biofuels area.

Dear editor, Developed countries met in Paris at the beginning of March to discuss how much they will contribute to the World Bank’s soft loan window for the next three years. 

Letter to the editor: One way OECD countries and others benefit from globalisation is by helping their businesses stay profitable through cost-effective outsourcing, mainly to China and India, and including some knowledge-based activities. In time, these will account for most outsourced work, but as emerging exporters cater to their own domestic markets, the playing field will level out somewhat. Innovation will be important for everyone to stay ahead.

Letter to the editor: Secretary-General Angel Gurría argues that “advancing on the issue of water will help us move forward on almost all the Millennium Development Goals” (editorial, No. 256, July 2006). We agree, and would like to draw your attention to the Working for Water programme (WfW) in South Africa.

In your article “Virtual solution” (No. 254, March 2006), you write that “any effective policy to encourage efficient use of scarce water resources must be based on pricing.” As you explain, increasing the price of water to better reflect its scarcity would cause low-value, water-intensive crops to become uncompetitive in water-scarce countries, and their imports more attractive. There is no disputing this logic, but any water policy prescription must be based on more than pricing and consider factors other than simply water scarcity if it is to be effective and adopted by governments.

Reconciling environmental conservation and the necessities of development will be very difficult in a developing county like mine. We know that the source of man’s welfare is the biosphere, and so to grow we must use its resources, particularly natural ones.

Although I agree that men and women who are happily married can expect higher average incomes, I believe the idea of what a happy marriage consists of needs to be looked at more closely (“US: A Healthy Marriage” by Wade Horn, in Roundtable on social affairs, No. 248, March 2005). Yes, the US plan to push marriage and counselling seems to be a good one from the viewpoint of promoting a happy life, but looking at the bigger picture, isn’t that trying to promote a utopian world?

Is it really “Africa’s moment” (No 249, May 2005)? You mention conflict, but how can we help stop humanitarian disasters, like the one that seems inevitable in Darfur, where we cannot say we were not warned. Essentially, some 2 million people (mostly elderly, female or infants), currently “sheltered” in sometimes abysmal refugee camps, now risk being shoved onto what effectively will become death marches into Chad by the very people who created the problem in the first place.

Your article on Russia sends out some useful signals about the need for reform (“Russia’s economy: Keeping up the good times”, No. 249, May 2005) in areas like energy, banking and so on. However, Russia really is taking off in other business areas, particularly television and film. And why not, given its rich cultural history in music, ballet, theatre and writing?

I am happy to see the efforts made by the OECD and other international agencies to bring forth suggestions to streamline the global oil shocks (No. 245, November 2004 and various editions). We at The Indian Institute of Finance (IIF) have been working extensively to provide possible solutions to economies and international agencies since 1987. Some of our suggestions and research forecasts have been very apt and have helped nations to build shields against oil shocks.

Dear editor, In trying to understand the economy, employment participation, productivity, and so on, you seem to focus your attention on traditional office or factory-bound jobs, whether full or part-time. But what does the OECD have to say about the creative arts and culture, which are also productive trades and industries?

You are right that many people would not question the value of data, not least OECD governments (Counting on numbers, No 245, November 2004).

Secretary-General Donald J. Johnston rightly identifies lack of coherence as a factor impeding the effectiveness of international development strategies (“Giving development a chance”, OECD Observer No 245, November 2004). But there are, I think, some early signs that useful lessons are now being learned.

Bravo to Barnaby Briggs and Shell for their good neighbour policies (No. 248). Alas, good neighbours are not enough.

The OECD identifies three fundamental goals of pension reform in the developed world: The reduction of public pension liabilities, the diversification of the sources of retirement income, and the lengthening of working life (No.248, Spotlight on social affairs). While I fully agree with the latter two, I think it is necessary to qualify the first objective.

The OECD promotes later retirement, yet, early retirement still seems to be the norm (“Fewer people, more heat”, by Donald J. Johnston, No. 244, September 2004).

I was a little bit surprised by your answers on the value of statistics in your last edition (“Counting on numbers”, OECD Observer No. 244). You note that there is often a gap between official figures and reality as perceived by the public. This is particularly true when it comes to evaluating the inflation rate. People often find that the cost of living is rising faster than the official figures show.

Ambassador John Rowan of Ireland writes in your May 2004 issue (“EU enlargement and the OECD: A new era”) that OECD membership has been a crucial part of his country’s well-known success story. The ambassador also recalls that of the 10 new member states of the European Union, only four are OECD members.

Letter to the editor: Your report Education at a Glance 2004 shows how badly Argentine students are lagging behind, not only those in OECD countries, but also in other “emerging” countries. Finding a job has become hard work for a growing number of Argentine youths, whose low educational attainment casts a shadow over the country’s economic prospects. Local businessmen have recently been complaining about shortages of qualified applicants, even for low-skilled workers.

Letter to the editor:You are right to argue that OECD agricultural subsidies (particularly in Europe and the US) always seem to be a stumbling block in the multilateral trade negotiations (“Farming support: the truth behind the numbers”, by Stefan Tangermann, see OECD Observer No 243, May 2004). This is the reason why free trade in agriculture is often considered a pipe dream.

You argue about integrating more women into the workforce to raise productivity, describing them in the same breath as other disadvantaged groups, including the old and the disabled. I wonder how productive all “able” groups are, women or men? Blaming low productivity on those who are not in the workforce seems misplaced in some cases and definitely ignores the economic role of women not in the workforce.

Letter to the editor: A shade over two years ago, you wrote in this magazine (Taxation in a global environment, OECD Observer No.230 January 2002) that the time was ripe for a new social compact between governments and citizens. You wrote that the former would provide services in an efficient and cost-effective manner, while the latter would pay their taxes. Aggressive tax planning “would be considered socially unacceptable”.

Letter to the editor: You back broadband and say that “too many homes and businesses remain mired in the slow download age of first-generation connectivity, unwilling or unable to access broadband” (“Broadband: For a bigger load”, OECD Observer, No. 240/241, December 2003).

Letter to the editor: Your call on governments to encourage broadband is welcome (news release, 12 Feb. 2004, see www.oecd.org/media). But what policies could possibly drive the process forward more quickly than it is already travelling?

Letter to the editor: "Are you sure that people spent so much less on transport in the 17th century than they do now?

Letter to the editor: "Whatever happened to the dream of hedonism we were once led to expect? Surely, new technology should help us work less, but instead the incentive seems to be to take advantage of technology and work even harder!"

Is it time for a food tax? Such a levy on high-calorie products, like sweet drinks, fast food and cakes, could be part of a solution to the obesity problem.

I do not share your pessimistic view of space tourism (“Unhappy Holidays” in OECD Observer No. 237, May 2003). In fact, space tourism is already happening and will slowly but steadily grow into the largest off-world business.

It is rare that I see my family's situation reflected perfectly in an article in a journal such as the OECD Observer. However, this came to pass in your 40th anniversary edition (No. 235, December 2002).

In “The battle for world progress” (OECD Observer No. 236, March 2003), Ron Gass discusses the uneasy march of globalisation, and proposes that the OECD take a leadership role in the “socio-political leg of the fair distribution of wealth” of Arnold Toynbee’s theory of progress; that OECD provide the policy bridge between the “Davos” forces and the “Porto Alegre” forces. Although this suggestion is a noble idea, it is flawed...

Letter to the editor: Your healthcare special raises some interesting points about the role of insurance and the differences across OECD countries (Observer No. 229, November 2001, also available online). But maybe your expectations of private insurance provision are a little optimistic.

I read with interest secretary-general Donald Johnston’s recent leader (“Multilateralism: Is there a choice?”, OECD Observer No. 237, May 2003, also online). His optimism is inspiring, but I wonder if it is not a bit excessive.

Your article on the German economy (“Germany: The case for reform”, OECD Observer No. 237, May 2003, also online) depicts only a small part of Germany’s problem. Foreign investment in Germany dropped in 2002 to only one-eighth of what it had been in 2001. Germany should implement reforms in bureaucracy and in the social state that could decrease costs for employers. The strict labour laws mandate high severance packages and a strict social benefits plan for the discharge of employees that do not take business requirements into consideration.

Your article “Ukraine : A miracle in waiting?” is a very thorough, well-documented and fair analysis of the economic evolution in Ukraine.

I enjoyed your sense of irony in using a picture of the UK’s National Economic Development Council on the cover of OECD Observer to illustrate traditional views of corporate governance.

Your article, “Ukraine: A miracle in waiting?” (OECD Observer No. 234, October 2002) identifies the problems preventing Ukraine from realising its considerable potential. It also notes the positive changes introduced by the reformist government appointed three years ago and maintained – at least in part – by that government’s successor.

Your series on the future (40th anniversary edition, OECD Observer No. 235) raises interesting views about models for prosperity, growth and recovery. But a view from the ground paints a less optimistic picture.

In an organisation as internationally minded as the OECD, I fail to understand the reasoning for the continued reference to Taiwan as “Chinese Taipei”. While I understand the term to be the outcome of an agreement between you and China, surely there is an inconsistency here. Especially since it split from China in 1949, Taiwan has evolved into a modern, vibrant democracy of the type you normally encourage.

Your article on “The global financial architecture in transition”, by Flemming Larsen, the director of the IMF office in Europe, says:

Congratulations on presenting Corporate Social Responsibility as very much an issue for governments and unions rather than just for companies – or at least I presume that was your intention with your cover and inside photo (OECD Observer No.234, October 2002).

You raise the question of whether the euro could one day become a more important international reserve currency (Observer 230 January 2002). Yet you omit to mention the Panglossian forecasts of some economic commentators a few years back who had predicted a massive shift of international reserves into the euro and out of the dollar – with a consequent surge of the euro.

In his article, Global warming: What comes after Kyoto?, Professor Burton Richter’s arguments are based on two incorrect premises – one explicit, the other implied (OECD Observer No. 233, August 2002). His very first sentence asserts “Every study of global climate change has concluded that world average temperatures are rising…” This is quite clearly contradicted by the best available data, which come from weather satellites: Global atmospheric temperatures show no perceptible warming trend since

Your article “Tobin tax: Could it work?” (OECD Observer, No. 231/232) supposes that the tax would be levied at the dealing sites, which would create huge administrative problems and make it unfeasible. The foreign exchange (Forex) market has two sides to it. According to Rodney Schmidt, a Canadian economist from North-South Institute, while dealing is not organised, settlement, which usually operates two days later via the back office, is very regulated, centralised and organised – the money is closely tracked.

The article, “Tackling some myths about temporary jobs” (OECD Observer, No. 231/232), seeks to “re-balance” a debate which you consider to have been distorted by unfounded assertions. It appears to be based on the assumption that no one has a good word to say for temporary employment. But on the contrary, the view that temporary work is of some advantage, to employers at least, is commonplace. As you note, it increases labour market flexibility by making it easier for employers to hire and fire workers in line with shifting demands. You also refer to the scope for employers to screen possible long-term recruits while they are temporarily employed.

You mention road pricing in your last edition. The evidence Anthony Ockwell presents seems convincing, but is there really such a thing as an optimum toll price that will clear the roads of unwanted traffic? Somehow I have the feeling that were road pricing built into our system, people would adapt to it. Take cigarette smoking: has raising the price really caused fewer people to smoke? Or is there a country where people simply do not go to work because income taxes are too high? No, the traffic would be no better after a while.

The global talking shop on the environment will soon be upon us – the 2002 Johannesburg Summit on Sustainable Development in August. Remember Rio? That was 10 years ago. And from my reading of UN preparatory meetings (and a few OECD articles), the message will be “it’s time for action” – urgent action in the case of deforestation. I couldn’t agree more. But do we need to spend US$50 million (one-third for security) and have as many as 65,000 people attending to do something? It’s surely an open question.

After having spent more than a decade at negotiating tables on sustainable development issues, I was intrigued by the discussions at the 2001 OECD Forum on Sustainable Development and the New Economy, and arguments in your various editions on the subject.

Your spotlight on healthcare mentions that healthcare accounts for a rising proportion of GDP in most countries (Observer, No. 29, November 2001). No doubt ageing is one factor and it is easily measured, but it is by no means the only one. We all know that medication and medical treatments are becoming ever more sophisticated and as a result more costly, regardless of whether the patient is young or old.

Although I tend to agree with several points in the article by Joaquim Oliveira and Tristan Price (“Brazil: More Than Just Potential”, OECD Observer No. 228, September 2001), I fear the authors are too optimistic. The long-term view for Brazil has indeed improved over the past 10 years or so. But, unfortunately, we must cross endless short-term bridges to get there. There are various traps along the way, as well as several challenges.

The OECD’s Brazil economic survey comes with a long echo. As a young reporter, I attended a 1980s news conference in Rio de Janeiro at which Brazil was presented as having “excellent long-term prospects”. It made me think of Harry Hopkins’ famous comment during the Great Depression: “People don’t eat in the long run.” Brazil has been the country of the future at least since I got here in 1977. The problem with this long tomorrow is that it never quite comes. There’s always a temporary obstacle in its way. In the late 1970s, Brazil was stymied by the energy crisis but “long-term prospects” were good.

Sir, OECD ministers were recently wondering about the quality and relevance of teaching, and your latest OECD Observer (No 225) takes up the matter rather thoroughly. The problem is of special interest as far as economics is concerned.

Sir, Your piece on France’s economy (Observer 223) makes the point that the French probably enjoy the best health system in the world. Costly, but very good nonetheless. Your article mentions the World Health Organisation’s study on which this claim is based, a study which ranks Italy, San Marino, Andorra, Malta and Singapore immediately behind France.

Sir, Armand D'Angour's article "What’s new? Some answers from Ancient Greece" in your summer issue (Observer 221/222) provides a refreshing perspective on the role of innovation in Western society then and now. I can only agree that the classical principles of innovation – that it is dynamic; that there are different levels of innovation; that context matters in defining innovation – remain valid, especially for today’s policymakers.

Letter to the editor: Sir, The received wisdom that the euro zone remains an unreformed economy doomed to high unemployment and low growth rates fails to satisfy on two counts. Firstly, it makes the mistake of treating all euro zone countries as homogeneous examples of the European “social model”, ignoring the wide diversity of actual practice.

Letter to the editor: Sir, Vincent Koen pronounces the euro to be a success, and argues that economic fundamentals suggest that the euro will appreciate against the US dollar over the longer term. I believe that such an assessment is premature: while the euro may appreciate in the medium term, its longer-term prospects look less robust.

Sir, In the current environment in which food consumers have expressed their concerns about bacterial contamination, about hormone, pesticide and antibiotic residues, and about genetically modified organisms, in their food, it is important that the analysis about these concerns is as comprehensive as possible. It is also important that the results of such analysis are discussed widely in order to reduce the public’s feelings of distrust.

Sir, you are right in asserting that the Irish economy is no longer the sick man of Europe (Observer 217/218, 1999). Whereas Ireland’s national income per head grew by just 1.8% per year for most of the 20th century, during the last six years income per head has grown by over 6% annually. Although the transformation in economic performance is relatively recent, the Irish economy is an interesting case study into the link between economic policy and growth.

I have read with interest the Spotlight on Biotechnology in the March edition of the Observer (no 216). The issues treated -- public perception, consumer concerns over food safety, IPRs, trade barriers -- reflect concerns currently expressed in OECD countries. It is disconcerting, however, -- particularly as someone who is quite familiar with the OECD Development Centre's work on biotechnology -- to find only a few short sentences throughout the Spotlight referring specifically to countries outside the OECD.