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This paper evaluates the link between educational policies and i) student performance and ii) macroeconomic measures of productivity. The analysis has two stages. First, using the 2015 and 2018 PISA databases, it quantifies the relationship between student test scores and the characteristics of students taking the tests, their school environment and national educational systems. Second, assuming that these relationships reflect the effect of different characteristics/policies on student test performance, the second stage converts the latter into an estimated effect on macroeconomic measures of productivity using a new measure of human capital as an intermediary variable. This new measure of human capital, devised in previous OECD work, combines student test scores and mean years of schooling with estimated elasticities that suggest the former is more important. The analysis shows a positive association between spending on education and student test scores, but only for levels of student expenditure below the OECD median, suggesting scope for currently low-spending countries to raise student performance with potential gains to long-run productivity. Boosting participation in early childhood education as well as improving teacher quality is found to generate large aggregate productivity gains. There are significant, but smaller, macroeconomic gains for many countries from limiting grade repetition and ability grouping across all subjects as well as increasing the accountability of schools. Finally, the results provide evidence for income inequality having a major influence on productivity through a human capital channel.

In recent years, provision of relevant up-skilling and re-skilling opportunities for adults has become a necessity due to global megatrends affecting labour markets. As a result, countries are looking to strengthen these opportunities throughout the life course. The successful deployment of these initiatives requires a coherent set of policies, with quality assurance being critically important. This paper provides an overview of quality assurance mechanisms from the perspective of the 38 OECD member countries. It proposes a framework to characterise and compare the governance, processes and outcomes of these mechanisms. The paper's contribution is to facilitate understanding of quality assurance across OECD countries, presenting a visual cross-country mapping that classifies existing mechanisms.

Industrial policy has resurfaced prominently in academic and policy discussions in the wake of major shocks and long-term trends. However, quantifying industrial strategies across countries remains difficult. The ‘Quantifying Industrial Strategies’ (QuIS) project measures industrial policy expenditures by gathering and harmonising publicly available data, based on a new methodology. This report summarises the composition of industrial strategies in the first nine participating countries in terms of expenditures, priorities, and policy instruments for the period 2019-21. The report finds that industrial policies are sizeable, with 1.5% of GDP in grants and tax expenditures, and with an important heterogeneity across countries in terms of strategic priorities; industrial strategies mainly rely on sectoral instruments, representing on average 29% of grants and tax expenditures; and green instruments are important and rose significantly in six out of nine countries between 2019 and 2021.

Industrial policy is sparking renewed interest across OECD member countries and partner economies. However, amidst an increasing number of objectives for industrial policy, and despite the availability of information on countries’ strategies and plans, it remains difficult to properly measure and compare resources spent on industrial policies and identify countries’ strategic priorities. The lack of a cross-country comparable source of information on resources dedicated to industrial policy partly results from the absence of a common methodology to account for industrial policy expenditures.

This paper provides a new methodology for reporting industrial policy expenditure in a comparable way across countries.

It is the first deliverable of the “Quantifying Industrial Strategies” project, which aims at measuring industrial policy expenditures across OECD countries and will gather harmonised data on industrial policy expenditures, their composition, and their mode of delivery.

This paper uses a new measure of human capital, which distinguishes both quality and quantity components, to estimate the long-term effect of the COVID-19-related school closures on aggregate productivity through the human capital channel. Productivity losses build up over time and are estimated to range between 0.4% and 2.1% after 45 years, for 12 weeks and 2 years of school closure, respectively. These results appear to be broadly consistent with earlier findings in the literature. Two opposing effects might influence these estimates. Online teaching would lower economic costs while learning losses in tertiary education (not considered here) would inflate them. Policies aimed at improving the quality of education and adult training will be needed to offset or, at least, alleviate the impact of the pandemic on human capital.

Innovation is key to reducing the environmental impacts of plastics. However, literature is generally lacking in the field of environmentally relevant plastics innovation. This paper develops an innovative conceptual framework to document and map environmentally relevant plastics innovation. Using this framework, it develops plastics innovation metrics using patents and trademarks to quantify trends over time, across countries, and to establish preliminary empirical links between policies and innovation outcomes.

Plastic waste prevention and recycling innovation has increased slightly more rapidly than overall plastics innovation. In contrast, innovation in bioplastics have witnessed a significant slowdown in recent years. Another key finding of this analysis is that environmentally relevant plastics innovation is concentrated in OECD countries and China and that top inventor countries are not specialized in the same technologies. Finally, the patent analysis shows some empirical evidence that recycling regulations may have triggered innovative activity in plastic recycling.

A diverse range of policies and practices are needed to promote quality assurance and improvement in early childhood education and care (ECEC) provision. These policies and practices need to be comprehensive, cover both structural and process aspects of quality and rely on strong institutions and data systems. They can satisfy the need for public accountability while also providing feedback on the strengths and weaknesses of individual services and the sector as a whole in order to inform further actions for improvement. Quality assurance and improvement policies are particularly important in the ECEC sector, which is often characterised by a “market approach” with a heavy reliance on private providers.

The number and diversity of micro-credential offerings have expanded substantially in recent years, accelerated by the onset of the COVID-19 pandemic. This paper examines how higher education institutions envision the future of micro-credentials and notes current policy developments undertaken to support the successful integration of micro-credentials into higher education systems. It concludes by reflecting on the promises and challenges micro-credentials present to policy makers supporting their development.

This paper describes the key characteristics of high-risk/high-reward research (HRHR), which has gained considerable interest from policy makers as a way to promote the development of new, ‘out-of-the-box’ ideas. It identifies three dimensions that are accentuated in HRHR research: higher levels of basicness, generality and novelty. These knowledge characteristics are commonly associated with market failure and research that requires public investment because it has large spill-overs, long time horizons and high levels of uncertainty. This is illustrated with examples of specific discoveries embedding each knowledge characteristic and the application of appropriate quantitative measures. The paper concludes with the computation and demonstration of an indicator of novelty that may be particularly well suited for the monitoring and evaluation of HRHR research policies.

In this article we give a presentation of the Norwegian quality based financing (QBF) mechanism and our experiences with this financing mechanism. The article outlines the main features of the Norwegian health care system, and its financing mechanisms. We then focus in on the QBF with a description of the system and the main considerations on which the system is based. We give a short theoretical framework on how to design quality based financing systems, and show how the consequences can vary depending on the design of the system. The Norwegian system has been evaluated, and the main findings of this evaluation is discussed together with some tentative predictions about the future developments.

Brazil remains a fairly closed economy, with small trade flows relative to its share of world income. This paper explores the effects of three possible policy reforms to strengthen Brazil’s integration into global trade: a reduction in import tariffs, less local content requirements and a full zero-rating of exports in indirect taxes. A simulation analysis using the OECD Multi-Region Trade CGE model suggests that current policies are holding back exports, production and investment in Brazil. The model simulations suggest significant scope for trade policy reforms to strengthen industrial development and export competitiveness. Results also show that the expansion of investment and production would be accompanied by significant employment gains. Moreover, employment growth is higher for low-skilled occupations, implying that a major trade and tax policy reform aiming at liberalising trade flows would particularly help those at the lower end of the income distribution.

Socio-economic cost-benefit analysis (CBA) is a powerful framework that can be very useful to governments making investment decisions. However the standard application of transport CBA has room for improvement. This paper describes efforts to improve the quality of transport CBA and its applicability to decision making. Three areas are addressed in detail: strategies for making the most of CBA, valuing and forecasting reliability benefits, and capturing wider economic impacts. The report is based on the papers and discussions at a Roundtable meeting of 30 experts held in Paris in November 2015. Roundtable participants took the view that a multi-faceted approach is needed to address the shortfalls; CBA theory and practice need to be gradually expanded to incorporate more impacts in the rigorous valuation and forecasting framework; and CBA results need to be more effectively linked to other criteria in the broader decision-making framework, including by bringing in a more diverse evidence base.

  • Au lendemain de la crise financière de 2008, un nombre significatif de pays ont réduit leurs dépenses publiques d’éducation. Malgré l’augmentation du PIB dans la plupart des pays de l’OCDE entre 2009 et 2010, les dépenses publiques au titre des établissements d’enseignement ont chuté dans un tiers d’entre eux.
  • Entre 2009 et 2011, les salaires des enseignants ont été soit gelés, soit réduits dans 12 des 25 pays de l’OCDE qui disposent de données, ce qui pourrait avoir pour effet de décourager les étudiants très performants qui souhaitaient embrasser cette carrière.
  • La demande d’enseignement et de formation est en constante augmentation alors même que les mesures d’austérité font pression sur les ressources allouées à l’éducation. Dans les années à venir, les établissements d’enseignement devront obtenir davantage de résultats, mais avec des moyens plus restreints.
English

The last decades have witnessed an increased concern in higher education over accountability, quality and productivity, and a struggle to meet increasingly complex challenges. This is more so in Middle East and North African (MENA) economies that witnessed a large expansion as a result of a high social demand and massification policies adopted by governments in public institutions. These policies also allowed the private sector to expand to meet the increasing demand. As a consequence, higher education institutions were faced with serious challenges related to quality because the quantitative expansions took place at the expense of quality (UNESCO, 2010). Although 14 out of 20 MENA economies established national bodies for quality assurance and accreditation, quality issues are still challenging higher education institutions in the region. The author presents the achievements, challenges and issues in quality in higher education in the region. She also briefly presents several international organisations’ initiatives and perspectives on quality in higher education in the region, and attempts to propose a set of suggestions and recommendations to move the systems to higher standards that are compatible with international ones.
This paper covers the following 20 economies in the MENA region: Algeria, Bahrain, Djibouti, Egypt, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, the Palestinian Authority, Qatar, Saudi Arabia, Somalia, Sudan*, Syria, Tunisia, United Arab Emirates, Yemen. Please note that wherever the term “the region” is used in the article, it refers to these economies.

This paper sets out to examine the impact of the quality of local and regional governments on the returns of investment, focusing on the returns of EU structural and cohesion funds. Despite the widespread belief that the quality of government affects the returns of public investments, whether this is effectively the case has seldom been proved. Using primary data on quality of government collected by the Quality of Government Institute, combined with World Bank Global Governance Indicators data, we conduct a two-way fixed effect panel regression model for a total of 169 in European regions during the period 1996 to 2007. The results of the analysis underline the importance of the quality of government both as a direct determinant of economic growth, as well as a moderator of the efficiency of structural and cohesion funds expenditure. Our analysis finds that both EU investments targeting regions and quality of government make a difference for regional economic growth, but that above a significant threshold level of expenditure, the quality of government is the key factor determining the returns of public investment. In many of the regions receiving the bulk of structural funds, greater levels of cohesion expenditure would, in the best case scenario, only lead to a marginal improvement in economic growth, unless the quality of government is significantly enhanced.
What influences the adoption of transparency obligations in trade agreements, and what are its effects? This paper uses a new dataset on transparency provisions in over a hundred regional trade agreements (RTAs) to provide empirical evidence of the political economy determinants of international transparency commitments, as well as the trade impact of negotiating such transparency provisions in RTAs. The study finds that RTAs with deeper mechanisms for enhancing transparency appear to be more strongly trade-promoting than those with shallower commitments on transparency. Concretely, each additional transparency commitment negotiated in an RTA is associated with an increase in bilateral trade flows of more than one percent. Considering that comprehensive RTAs typically contain a dozen of such commitments, countries that opt for a comprehensive transparency agenda can expect to gain substantial increases in intra-regional trade. Moreover, the findings suggest that the readiness of trading partners to adhere to transparency norms is influenced by the quality of home institutions, which is consistent with a view that strengthening governance and regulatory capacities can contribute to a broader diffusion of transparency practices in international trade. Overall, the results of the analysis suggest that transparency should remain an important element of the trade agenda, both at the regional and multilateral levels.

Medical education is not exempt from the increasing societal expectations of accountability and this is evidenced by an increasing number of litigation cases by students who are dissatisfied with their assessment. The time and monetary costs of student appeals makes it imperative that medical schools adopt robust quality assured assessment processes. The success of these processes depends on the ability of faculty to determine the necessary changes required and manage the change process. Openness to change is critical; therefore, identifying the processes that facilitate staff openness constitutes an important step in better understanding how higher education institutions can ensure that staff members are willing to support and engage in change initiatives. This paper examines the contribution of the three attributes of the change model (content, process and context) in relation to staff openness to the quality assurance processes of assessment changes that were implemented at the University of Tasmania’s School of Medicine.

The procedures commonly employed for quality assurance in higher education are designed as if the endeavour were a technical process, whereas it may be more useful to view it as a political process. For example, quality assurance requires making choices among competing conceptions of quality, and in so doing privileges some interests over others. Moreover, some stakeholders tend to be given a greater voice than others in the design and implementation of quality assurance. The author concludes that rather than denying the political nature of quality assurance, it would be better to accept Morley’s claim that quality assurance is “a socially constructed domain of power”, and design procedures for it in a way that is appropriate for a political process. It is suggested that employing the “responsive model” of evaluation could make quality assurance more effective in improving educational quality. In the responsive model, evaluation is deemed to be a collaborative process that starts with the claims, concerns and issues put forth by all stakeholders.

Developing an allocation scheme for distributing rights amongst fishing nations is a key issue in the development of stable cooperative arrangements to exploit international fish resources. Allocation within regional fisheries management organisations (RFMOs) is generally based on the historical catches of parties to the RFMOs. However, as membership of RFMOs increases and pressure to allow additional countries, particularly coastal developing countries, to participate meaningfully in international fisheries intensifies, there is increasing policy attention being paid to the issue of allocation of rights in RFMOs. This paper explores issues relating to the process of allocating participatory rights in RFMOs, especially in those cases in which one or more fisheries remain unallocated, and is intended to stimulate discussion among policy makers on possible policy directions in such situations without directly or indirectly evaluating existing allocation schemes. The paper reviews the international legal framework governing international fisheries, the economic issues underlying allocations, and the current state of play in the allocation regimes in RFMOs. A broader perspective on the allocation issue is provided by examining the experiences of other resource sectors that have wrestled policy challenges similar to those confronting international fisheries in allocating participatory rights amongst current and potential participants - water resources; and greenhouse gases – to see if they offer any transferable insights on the issue.
This paper constructs a broad measure of financial conditions for the United States, Japan, the Euro Area and the United Kingdom, by extending monetary condition indices which are traditionally used to gauge the impact of monetary policy on the economy. In addition to changes in the exchange rate and short and long interest rates, the change in credit availability, corporate bond spreads and household wealth are taken into account to gauge the evolution of financial conditions. Since the onset of the financial crisis, financial conditions have tightened by an unprecedented degree in the four countries/regions and this is evaluated to exert a major drag on activity.
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