MACROECONOMIC AND FINANCIAL POLICY
Better policies and effective multilateralism: the path to a better future
To meet the major structural challenges facing our world, we need closer cooperation – and the Organisation for Economic Co-operation and Development is working with its members and partner countries to achieve the shared goals of prosperity, stability and peace via specific proposals I n recent years, the world has had to navigate the impacts of major economic shocks: a one-in-100-year pandemic, a major war in Europe, the evolving conflicts in the Middle East and new forms of protectionism. All of this at a time when the world continues to face major structural challenges that require more effective policy responses: climate change, sustainable development, the digital transformation and artificial intelligence, as well as population ageing. Although the task may look daunting, closer cooperation across a range of key public policy areas will help bring us closer to our shared goals of prosperity, stability and peace. Through continued policy analysis, dialogue and reform and on the strong foundation of our commitment to effective multilateralism, the Organisation for Economic Co-operation and Development is working with our members and partner countries to help achieve those objectives. Specifically, to secure strong, sustainable, resilient and inclusive growth the OECD proposes that: 1. We need to remain vigilant in durably tackling inflation. There will be scope to lower nominal policy interest rates this year and next year as inflation declines. Still, the policy stance should remain restrictive in most major economies for some time to come.
2. We need to find the best ways to secure more robust productivity growth. Lowering barriers in product markets – that is, lowering barriers to entry, expansion and the exit of firms – is key to ensuring greater levels of competition, business dynamism, productivity and growth. 3. We need to reinvigorate global trade with well-functioning global markets and resilient supply chains and a rules-based trading system in good working order. Globalisation, open markets, and freer global trade and investment flows have been key in increasing incomes and living standards around the world, helping to lift hundreds of millions of people out of poverty. More open trade and more investment means stronger growth, more jobs, higher incomes and lower costs for consumers. This helps put downward pressure on inflation. Our work together needs to focus on boosting supply chain resilience, the social and
By Mathias Cormann, secretary- general, Organisation for Economic Co-operation and Development
MATHIAS CORMANN
Mathias Cormann was appointed secretary-general of the Organisation for Economic Co-operation and Development in 2021. Previously, he served as Australia’s finance minister, leader of the government in the Australian Senate and federal senator representing the State of Western Australia. He also worked as chief of staff and senior adviser to various state and federal ministers in Australia and for the premier of Western Australia. Born in Belgium, he graduated in law at the Flemish Catholic University of Louvain (Leuven), following studies at the University of Namur and the University of East Anglia.
Twitter @MathiasCormann and @oecd oecd.org
104 G7 ITALY: THE APULIA SUMMIT — 2024
globalgovernanceproject.org
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