Tag Archives: World Bank

Updates from OECD


Making Innovation Policy Work: Learning from Experimentation, OECD, The World Bank.

OECD, The World Bank – Industrial and innovation policies characterized by top-down government interventions are not the right approach to development.

The reasons for the failures of such policies are well known, and include the risks of capture by vested interests, lack of information on the economy and strong information asymmetry with private actors, and a lack of capability in the public sector for effective policy making.

Another, more appropriate approach innovation (and industrial) policy, involves search, experimentation, monitoring learning and adaptation, all of which need to occur in a context of international openness to knowledge, trade, investment and competition. This new approach also rests on close co-operation with private and non-governmental actors, who are often better placed than governments to identify barriers to innovation, and point to areas for productive investment or policy action. more> http://tinyurl.com/qgyq3us

IMF’s Christine Lagarde: ‘I Don’t Pay Taxes, But You Should’

By Robert W. Wood – IMF chief Christine Lagarde suggested in an interview with UK’s Guardian that the Greeks should pay their taxes. It turns out Ms. Lagarde-legitimately-doesn’t pay them herself.

No taxes is the norm for most United Nations employees covered by a convention on diplomatic relations signed by most nations. If you look at salaries, those working for the IMF, World Bank, and United Nations can stretch their dollars.

Of course, Americans face famously complicated tax rules including worldwide reporting. See Expats Lobby For Tax on Residence, Not Worldwide Income. more> http://tinyurl.com/brwxc4x

Why Europe’s crisis matters to U.S.

By Michael Gerson – An American economic recovery now faces only two obstacles. Unfortunately, they are considerable: the broken politics of the United States and the broken politics of Europe.

Given the gleeful polarization of the U.S. political class, any positive action on the economy may require a clarifying presidential election. But across the Atlantic, the test comes now. Can Europe contain an unavoidable financial meltdown to its weakest members?

“They are taking a ‘buy time’ approach,” says World Bank President Bob Zoellick. “But buying time to do what? They need a solution that interconnects sovereign debt, banks and, for some, competitiveness. Europe needs to decide what type of fiscal union would complement monetary union — or how to manage the consequences of the alternative.” more> http://tinyurl.com/4ycyofe

Repeating mistakes of the 1930s

By Robert J. Samuelson – “We are back in a danger zone,” says a top economist at the International Monetary Fund. Though an understatement, it captures the central paradox of this year’s annual meeting of the IMF and World Bank. Everyone is alarmed at the swift deterioration of the economic outlook, but there is no leadership — no consensus on what to do or, even when crude agreement exists, little conviction that practical politics will permit action. There is a hazardous vacuum of ideas and power. more> http://tinyurl.com/3lz2hmk