Connect with us

Reports

WEF Report: New Targets Required for Economic Recovery

Published

on

Reducing inequality and improving social mobility, identifying new forms of growth, and focusing on new measures of economic performance are among the biggest challenges facing the global economy as countries emerge from lockdown. Current unemployment figures are likely a better barometer of economic health than financial market valuations, and the deglobalization of supply chains may force emerging markets to reconsider growth models. These are some of the findings of the World Economic Forum’s Chief Economists Outlook, published today.

The latest edition of the Forum’s Chief Economists Outlook is the outcome of consultations with leading chief economists from across the public and private sectors. The report outlines the current global economic outlook and lays out the priorities for a recovery agenda that is fair, inclusive and sustainable.

With much of the recent discourse focused on trying to predict whether the economic recovery will be V-shaped, U-shaped or L-shaped, it is increasingly clear that targeting a recovery in terms of GDP growth alone will not be enough to achieve the economic and societal transformation that is needed. Beyond GDP and its distribution, the report suggests that international convergence on a new dashboard of economic performance is needed that also targets different dimensions of national wealth as proxies for resilience and access to economic opportunity.

“Recent events have brought about a long overdue conversation about future growth. As we emerge from the crisis, the quality and direction of economic growth must take primacy over its speed. In this new paradigm, we need metrics beyond GDP and an updated policy toolkit to ensure that future growth is inclusive and sustainable, and provides opportunity for all,” said Saadia Zahidi, Managing Director, World Economic Forum.

The report argues that inequality, which the crisis has aggravated, must urgently be addressed through an adaptation of tax systems, building on pre-crisis efforts by the international community and national governments to reform tax architectures. Growing inequality had brought a number of tax instruments, such as wealth taxes and higher marginal income taxes, back into the public discourse. The pandemic provides an excellent opportunity to introduce far-reaching systemic change that will stop inequality from spiralling further out of control and focus on measures that enhance social mobility.

With soaring debt-to-GDP ratios, governments have difficult decisions to make on how these debts will be paid off and by whom, given the deeply uneven spread of the pandemic’s impact. Correctly calibrating this burden-sharing presents a tremendous opportunity for governments to regain the trust of citizens, many of whom have seen their chances of advancing economically dwindle for many years.

Chief economists expect the crisis to affect two important drivers of inclusive long-term economic progress: innovation and global integration. The economic contraction will impact levels of investment into R&D at a time when it’s needed more than ever to tackle climate change and expand opportunity for all. As multinational companies may deglobalize and repatriate parts of their value chain, the crisis could result in long-term damage to ties between high- and low-income countries.

Given the scale of the crisis, governments need to go beyond the typical toolbox of interventions to reshape entire sectors and co-create new markets, both as regulators and investors. These new frontier markets range from green energy, ecotourism and the circular economy, to health, education, training and the care economy. Views are sharply divided, however, over the role of governments in the innovation process. On structural change within economies, the chief economists think government support in the current phase of the crisis should be targeted more towards the growth sectors of the future rather than protecting all jobs.

The report also examines the stark contrast between real economic indicators and US equity market expectations for the medium-term outlook. The optimism of markets seems to be based on positive data on retail sales and industrial production, an expectation that the health crisis will be contained in 2020, and the extraordinary monetary stimulus being provided by central banks. However, this optimism may be built on shaky ground if the pandemic drags on and earnings are secured by reductions in workforces and investments, which could lead to reduced employment, innovation and consumer spending in 2021.

Continue Reading
Comments

Reports

New Skills Development Key to Further Improving Students’ Learning Outcomes

Published

on

business-upskilling

Learning outcomes in Russia would benefit significantly from a focus on teaching new skills that are tailored to the modern labor market, says a new World Bank report, New Skills for a New Century: Informing Regional Policy.

Russia’s education system has traditionally been well-performing and efficient, with Russian students appearing among the top performers globally. However, today’s labor market requires “21st century skills” – a combination of skills, knowledge, and expertise that students need to succeed in the modern world.

“Russia’s education system could achieve better teaching and learning outcomes if it focused more on developing 21st-century skills,” says Tigran Shmis, World Bank Senior Education Specialist. “There is a strong relationship between the quality of the school environment, innovative teaching practices, students’ perception of school, and students’ learning outcomes.”

According to the report, 38 percent of Russian schools today are not equipped with workshops and 46 percent do not have scientific laboratories. And, 77 percent of educational institutions do not have dedicated places for integrated lessons that stimulate the development of new skills and team interaction.

The way teaching is delivered, the physical characteristics of the learning environment, and the school’s psychological climate all affect students’ learning results. The study provides an insight into how these factors impact the development of students’ skills, including 21st century and digital skills. Along with data analytics, the study includes a qualitative perspective of modern teaching and learning in Russia, as well as the impacts of the COVID-19 pandemic on teaching and learning.

“Developing the ability of students to master 21st century skills is critical to ensuring their future employment and career success,” says Renaud Seligmann, World Bank Country Director for Russia. “Studies in Russia have shown that businesses having access to workers with these skills will also be critical for growth and productivity. In turn, high-quality human capital is a cornerstone of the resilience and sustainability of the national economy.”

The report provides recommendations for how schools in Russia can better help students excel. For example, teachers who practice innovative teaching are more likely to drive higher achievement. Modern teaching practices can be supported by expanding the use of technology and enhancing the learning environment in classrooms. Technology should be made available in schools on an equitable basis to improve student learning and enhance teachers’ professional development. Education policymakers should prioritize the prevention of bullying and the development of supporting measures to ensure a positive school climate.

Despite the physical return of students to schools, the COVID-19 pandemic is causing continued learning losses. Therefore, new equipment, ICT, and innovative teaching methods are needed to enable teachers to improve their practices and compensate such learning losses.

Continue Reading

Reports

Post-COVID-19, regaining citizen’s trust should be a priority for governments

Published

on

coronavirus people

The COVID-19 crisis has demonstrated governments’ ability to respond to a major global crisis with extraordinary flexibility, innovation and determination. However, emerging evidence suggests that much more could have been done in advance to bolster resilience and many actions may have undermined trust and transparency between governments and their citizens, according to a new OECD report.

Government at a Glance 2021 says that one of the biggest lessons of the pandemic is that governments will need to respond to future crises at speed and scale while safeguarding trust and transparency. “Looking forward, we must focus simultaneously on promoting the economic recovery and avoiding democratic decline” said OECD Director of Public Governance Elsa Pilichowski. “Reinforcing democracy should be one of our highest priorities.”

 Countries have introduced thousands of emergency regulations, often on a fast track. Some alleviation of standards is inevitable in an emergency, but must be limited in scope and time to avoid damaging citizen perceptions of the competence, openness, transparency, and fairness of government.

 Governments should step up their efforts in three areas to boost trust and transparency and reinforce democracy:

 Tackling misinformation is key. Even with a boost in trust in government sparked by the pandemic in 2020, on average only 51% of people in OECD countries for which data is available trusted their government. There is a risk that some people and groups may be dissociating themselves from traditional democratic processes.

 It is crucial to enhance representation and participation in a fair and transparent manner. Governments must seek to promote inclusion and diversity, support the representation of young people, women and other under-represented groups in public life and policy consultation. Fine-tuning consultation and engagement practices could improve transparency and trust in public institutions, says the report. Governments must also level the playing field in lobbying. Less than half of countries have transparency requirements covering most of the actors that regularly engage in lobbying.

 Strengthening governance must be prioritised to tackle global challenges while harnessing the potential of new technologies. In 2018, only half of OECD countries had a specific government institution tasked with identifying novel, unforeseen or complex crises. To be fit for the future, and secure the foundations of democracy, governments must be ready to act at speed and scale while safeguarding trust and transparency.

 Governments must also learn to spend better, according to Government at a Glance 2021. OECD countries are providing large amounts of support to citizens and businesses during this crisis: measures ongoing or announced as of March 2021 represented, roughly, 16.4% of GDP in additional spending or foregone revenues, and up to 10.5% of GDP via other means. Governments will need to review public spending to increase efficiency, ensure that spending priorities match people’s needs, and improve the quality of public services.

Continue Reading

Reports

Sweden: Invest in skills and the digital economy to bolster the recovery from COVID-19

Published

on

Sweden’s economy is on the road to recovery from the shock of the COVID-19 crisis, yet risks remain. Moving ahead with a labour reform to facilitate adaptation in a fast-changing economic environment, and investing in digital skills and infrastructure, will be crucial to revive employment and build a sustainable recovery, according to the latest OECD Economic Survey of Sweden.

The pandemic triggered a severe recession in Sweden, despite mild distancing measures and swift government action to protect people and businesses. GDP fell by less than in many other European economies in 2020, thanks to reinforced short-time work, compensation to firms for lost revenue and measures to prop up the financial system, but unemployment still rose sharply. Solid public finances provided room for further stimulus in 2021 to buttress the recovery.

 The Survey recommends maintaining targeted support to people and firms until the pandemic subsides, then focusing on strengthening vocational training and skills and increasing investment in areas like high-speed internet and low-carbon transport. Addressing regional inequality, which is low but rising, should also be a priority as the recovery takes hold.

 The Survey shows that Sweden has been among the most resilient OECD countries in the face of a historic shock. Yet, like other economies, it faces challenges from demographic changes and the shift to green, digital economies. Investments in education and training, and labour reforms along the lines negotiated by the social partners, will support job creation and strengthen economic resilience. Building on Sweden’s leadership in digital innovation and diffusion will also be key for driving productivity.

 After a 3% contraction in 2020, interrupting several years of growth, the Survey projects a rebound in activity with 3.9% growth in 2021 and 3.4% in 2022 as industrial production resumes and exports recover. The recovery in world trade is bolstering the Swedish economy, however the country remains vulnerable to potential disruptions in global value chains.  

The pandemic has aggravated a mismatch in Sweden’s job market, with unfilled vacancies for highly qualified workers coinciding with high unemployment for low-skilled workers and immigrants. The public employment service needs strengthening to provide better support to jobseekers, including immigrants and women, and labour policies should strike the right balance between supporting businesses and workers and supporting transitions away from declining businesses towards growing sectors.

A rising share of youths and older people in the population, especially in remote areas, is affecting the finances of local governments, which provide the bulk of welfare services. Strengthening local government budgets and ensuring equal welfare provision across the country will require providing tax income to poorer regions more efficiently and raising the economic growth potential across regions through investments in innovation. Improving coordination between government entities and reinforcing the role of universities in local economic networks would help achieve that aim.

Continue Reading

Publications

Latest

Green Planet19 mins ago

The problems of climate change, part 2

As we continue to examine the studies on climate change that is raising the average temperature of the planet, it...

Environment6 hours ago

UNEP West Asia launches the State of Food Waste Report

Improved awareness, appropriate policies and a strong regulatory framework are needed to reduce food waste in West Asia, according to...

Development10 hours ago

Tanzania’s Economic Growth by Transforming Its Tourism Sector

As Tanzania’s tourism sector recovers from the harsh effects of the COVID-19 (coronavirus) pandemic on businesses and employment, the latest...

Human Rights12 hours ago

Conflict, COVID, climate crisis, likely to fuel acute food insecurity in 23 ‘hunger hotspots’

Life-saving aid to families on the brink of famine is being cut off in several countries by fighting and blockades,...

International Law14 hours ago

Upholding Dharma by Mob lynching?

Label any Muslim a cow smuggler, accuse him of carrying beef and then lynch in the name of protecting religion....

business-upskilling business-upskilling
Reports16 hours ago

New Skills Development Key to Further Improving Students’ Learning Outcomes

Learning outcomes in Russia would benefit significantly from a focus on teaching new skills that are tailored to the modern...

East Asia18 hours ago

Belt & Road ABCs: Analysis of “One Belt – One Road” initiative

Understanding the foreign policy and geo-economic strategies of countries, especially in such a difficult time when national borders are closed...

Trending