OECD Economic Surveys: Czech Republic

Frequency :
Every 18 months
ISSN :
1999-0561 (online)
ISSN :
1995-350X (print)
DOI :
10.1787/19990561
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OECD’s periodic surveys of the Czech economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.

Also available in: French
 
OECD Economic Surveys: Czech Republic 2014

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Author(s):
OECD
Publication Date :
18 Mar 2014
Pages :
120
ISBN :
9789264219533 (EPUB) ; 9789264209350 (PDF) ; 9789264206793 (print)
DOI :
10.1787/eco_surveys-cze-2014-en

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OECD's 2014 review of the economy of the Czech Republic examines recent economic developments, prospects and policies. Special chapters cover completing the transition to a competitive domestic economy and strengthening skill use and school-to-work transitions.

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    Basic statistics of Czech Republic, 2012
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    Executive summary
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    Assessment and recommendations
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    Progress in main structural reforms

    This annex reviews action taken on recommendations from previous Surveys. They cover the following areas: strengthening the fiscal framework, promoting spending efficiency through budgetary management and control, reforming the pension system, improving health spending efficiency, making the tax structure more growth and employment friendly, achieving efficiency in the energy system, improving the business environment, supporting innovation and the adoption of new technology, improving the business environment, supporting innovation and the adoption of new technologies. Each recommendation is followed by a note of actions taken since the November 2010 Survey. Recommendations that are new in this Survey are listed in the relevant chapters.

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  • Expand / Collapse Hide / Show all Abstracts Thematics chapters

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      Completing the transition to a competitive domestic economy

      The stalled income convergence and the economy’s high reliance on international trade point to a need for a more balanced and stable income convergence process. This requires the development of a strong domestic economy, implying a substantial expansion of one of the smallest private service sectors in the OECD. This would constitute a growth driver as well as an improvement in international competitiveness as more competitively priced services are intermediate inputs in manufacturing production and contribute to stimulating innovation processes and product diversification. Promoting a competitive private service sector relies on the effective implementation of competition policy. Over the past couple of decades, many impediments to entrepreneurship have been dismantled and the foundations of a competitive market based economy established. The competition authority and its tools are close to best practice, but still have to uncover any domestic hard core cartels, pointing to a need for a review of its resources and some of its key tools, such as the leniency programme. Many of the network sectors remain dominated by vertically integrated state-owned incumbents, requiring additional measures to restrict public sector interference and securing non-discriminatory access to networks.

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      Strengthening skill use and school-to-work transitions

      The education system has reacted slowly to changes in labour market needs, leading to an increasing number of school leavers without sufficient qualification. In addition, declining PISA scores and a rising share of low achievers are raising concerns about the quality of the future labour force. These factors play a role in the stalled income convergence process. Indeed, practices such as early tracking, streaming and low transferability between academic tracks hamper employability, human capital accumulation and social mobility. In the vocational education and training system, resources continue to be allocated on a historical basis. A more endogenous adjustment of the system to better align students’ qualifications with labour market needs requires active participation of social partners, students and education institutions. The rapid expansion of tertiary education without a corresponding increase in resources has led to fears about declining quality. Measures to better balance family and work lives can improve career options for women and therefore reduce the current tensions between having children and full time labour market participation of younger women. This could also ease the coming labour shortages associated with population ageing.

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