OECD urges governments to bolster sustainable growth

Source: Xinhua| 2019-07-12 23:21:07|Editor: Mu Xuequan
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PARIS, July 12 (Xinhua) -- The Paris-based Organisation for Economic Co-operation and Development (OECD) on Friday called on world powers and emerging economies "to take urgent action" to meet the sustainable and inclusive growth targets and to push ahead with the necessary reforms to better manage the economic challenges.

Noting "a disappointing pace of reforms in 2017-2018" and "little sign of an imminent pick-up from the already modest pace of reform observed in the previous two years," the OECD recommended that governments "carefully select, prepare, prioritise and implement country-specific structural reforms that boost long-term growth, improve competitiveness and productivity, create jobs and ensure a cleaner environment and equal opportunities for all."

In its "Going for Growth" report, the OECD said that policymakers should embark on education reform in order "to make sure current and future generations find quality employment and lead more productive careers."

"Addressing the pertinent issue of labour market segmentation and improving the conditions for labour market inclusion of women, migrants, minorities and older workers are also crucial so everyone can benefit from growth," it said.

The organization also urged policymakers to focus more on making the public sector more efficient by facilitating access to markets and creating conditions for businesses to invest in innovation, notably in emerging-market economies.

"Reforms to boost competition in markets for goods and services are often difficult. But opening up markets to entry, competition and foreign trade and investment is essential for innovation, the diffusion of digital technologies and ultimately productivity growth and social inclusion. Such reforms remain among the most frequent Going for Growth priorities," it said.

In a bid to make growth environmentally sustainable, the report suggested that countries make better use of environmental taxation, phase out agricultural subsidies and environmentally harmful tax breaks, and take additional steps to reduce emissions from transport, including more investment in better and low-emission public transport.

"As growth is slowing down and new technologies are rapidly transforming our economies, it is urgent to pursue reform efforts to boost inclusive and sustainable growth," said OECD Secretary General Angel Gurria.

"Going for Growth points policymakers to where to focus their efforts to boost growth, enhance the equality of opportunities and inclusiveness and improve environmental sustainability. Our key recommendation extends beyond the G7 to all OECD and key non-member economies: the time for reform is now for better lives today and for future generations," he said.