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Triggered by sub-prime and Shanghai stock exchange volatility, major stock markets suffered a significant correction at the end of February. Markets have since recovered and European markets have over the past few weeks more than compensated these losses. While another downturn on the Shanghai exchange end of May led to some increases in volatility on major markets, they have so far not altered their course...

This paper presents an update to the Economic Impact Assessment of Amount A of Pillar One of the Two Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy. The revised assessment is based on Amount A as detailed in the text of the Multilateral Convention to Implement Amount A of Pillar One. With results extending from 2017 to 2021, the paper details the changes in the design of Amount A as well as updates to the data and methodology of the impact assessment. The paper outlines the impact of Amount A on the allocation of taxing rights and the resulting revenue impacts.

This paper updates analyses of the relationship between fluctuations of the business cycle and the number of traffic fatalities published in 2015 by the International Transport Forum. Since then, the global recession that started in 2008 has ended and economic growth has returned to most International Transport Forum countries. The paper revisits the affect that declining or stable high rates of unemployment have on traffic fatalities.

Unprecedented measures imposed or recommended by governments, including travel restrictions and curtailment of business operations, have been in effect in most jurisdictions in various forms and stages during most of 2020 due to the COVID-19 pandemic and this situation continues in 2021. This note revisits the guidance issued by the OECD Secretariat in April 2020 on the impact of the COVID-19 pandemic on tax treaties. The guidance represents the Secretariat’s views, supported by Working Party 1 (in its inclusive framework setting), on the interpretation of the provisions of tax treaties intending to provide more certainty to taxpayers during this exceptional period when those measures were applicable. The guidance reflects the general approach of Working Party 1 and illustrates how some jurisdictions have addressed the impact of COVID-19 on the tax situations of individuals and employers. This updated guidance outlines the application of the existing rules and the OECD Commentary on concerns related to the creation of permanent establishments; the application of “tie-breaker” rules to dual residents; and the tax treaty treatment of income from employment.

French
Increasing productivity growth through innovation is a key to raising living standards. Although R&D intensity in Japan is the third highest in the OECD area, the benefits do not appear to have been commensurate with the level of investment. The innovation system, which developed during the catchingup process, is largely input-driven and focused on incremental innovation based on closed and stable corporate and employment systems. However, this approach is less appropriate in the current global environment that favours risk-taking and a more open system relying on external linkages. To improve the innovation system, a broad-based strategy is needed, including a reform of framework conditions in the product and labour markets to strengthen competition and mobility, enhance international R&D links and improve the environment for venture business. Education and public research should be upgraded through stronger competition. The effectiveness of science and technology policy should be increased by strengthening its link to economic framework policies. This Working Paper relates to the 2006 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/japan).

Starting from a low level in early 2000s, Turkey’s total capital stock has since expanded rapidly, but the composition and quality of investment raises questions. This study focuses on business investment, as the main driver of physical and knowledge-based capital formation and, hence, of potential output and the material foundations of well-being. Micro data allow to distinguish four types of firms: small businesses with a high rate of informality, medium-sized family firms, large formal corporations, and skilled start-ups. The relative importance of the challenges facing these different types of firms varies, notably with respect to skill shortcomings, regulatory burdens, labour costs, access to bank lending, over-leveraging and scarce equity capital. Improving the current business environment and overcoming the fragmentation of the business sector will be crucial to upgrade the quality of business investment and to enhance the allocative efficiency of capital formation. This calls for promoting formality, best management practices, the build-up of equity capital, access to long-term bank financing and other market-based financing that can complement traditional bank lending; and a faster and more inclusive transition to the digital economy.

This paper explains the rationale for updating the OECD Programme for International Student Assessment (PISA) 2021 questionnaire on Information and Communication Technology (ICT) and shows how it covers policy topics of current relevance. After presenting key findings based on previous ICT-related PISA data, the paper provides a summary of the PISA 2021 ICT framework guiding the development of the questionnaire. The paper then describes the process followed by the OECD/PISA secretariat for the development of the PISA 2021 ICT questionnaire items. The paper concludes by drawing some lessons that would inform future development of this instrument.

This paper is intended to serve three purposes. First, it presents a slightly abbreviated version of the summary of the book published by Regional Plan Association (RPA) in January 2011 about the serious capacity and delay problems at the three major airports in New York and what might be done about it. Second, the paper provides information on the response by the Port Authority of New York and New Jersey, the owners and operators of the three airports and what has transpired in the two years since the book was published. Third, the paper discusses some relevant emerging issues that will likely further affect the ability to address the growing problem of capacity and delays at these airports.

Scotland’s Curriculum for Excellence (CfE) is a pioneering example of curriculum reform, but the qualifications for upper-secondary school students have seen far less reform. Exam cancellations in 2020-21, and the debates generated provide an opportunity to radically reconsider the assessment system. This paper compares the Scottish system to four other British legacy systems and five other legacy traditions, to offer insight for how Scotland could improve the alignment between CfE and upper-secondary assessments. Theoretical considerations further guide the analysis on what constitutes a dependable and trustworthy assessment system, to refine the reflection around options for the Scottish system. Three major themes emerge from this comparative review: external assessments could be more innovative to capture a wider range of student capabilities; the role of teacher assessment could be reconsidered; and the academic and vocational strands could be better integrated with the assessment system to offer a broader range of curriculum options.

The importance of uranium can be examined from several perspectives. First, natural uranium is a strategic energy resource because it is a key ingredient for the generation of nuclear power and, therefore, it can affect the energy security of a state. Second, natural uranium is also a raw material in relative abundance throughout the world, which can, through certain steps, be transformed into nuclear explosive devices. Thus, there is both an interest in the trade of uranium resources and a need for their regulatory control. The importance of uranium to the worldwide civilian nuclear industry means that its extraction and processing – the so-called “front end” of the nuclear fuel cycle – is of regulatory interest. Like “ordinary” metal mining, which is generally regulated within a country, uranium mining must also be considered from the more particular perspective of regulation and control, as part of the international nuclear law regime that is applied to the entire nuclear fuel cycle.

French
The impacts of climate change are expected to create numerous challenges for cities. This report synthesizes key points raised in a series of discussions among “adaptation leaders” from fourteen cities around the world. Critical issues for urban adaptation that emerged from the discussions include the need for political commitment at multiple levels of government, information and data as a basis for understanding potential risks and vulnerabilities, meaningful and effective stakeholder engagement shaped by local contexts, and sustained financial and staff resources that are sensitive to urban variability. Further, the findings highlight how policy-makers and international organizations working with cities on issues of adaptation and resilience must support and facilitate processes of testing ideas, learning from experiences, and recalibrating as new information is obtained and lessons are learned.

This Technical Paper is a study of the working of urban credit cooperatives in China. It begins by putting the German, French, US and Japanese experiences into perspective, before constructing a macroeconomic analysis of the operation, institutional context and the role of urban credit co-operatives within the savings and credit systems. A survey of 57 cooperatives in eight Chinese towns is used to study credit co-operative activities at the micro-economic level. The survey shows that within their heterogeneity the credit co-operatives generally ignore the laws governing banking operations. Unsurprisingly, the most profitable are located in the fast-growing coastal regions, but they tend to use a large proportion of their funds for loans to the state, rather than the co-operative, sector ...

The development of Asian cities is characterised by rapid and continuous urbanisation on an unprecedented scale, with rapid economic growth led in most places by the manufacturing industry, and rapidly increasing motorisation. The result has been escalating greenhouse gas emissions, sprawling urban development and local environmental impacts, as well as disparities in income, education levels and job opportunities in the urban population. These trends differ sharply from those in most of the OECD area and call for a green growth model that differs from those identified in previous OECD studies and that addresses the specific circumstances of Asian cities.

This paper proposes an analytical framework for assessing policies for green growth in rapidly growing cities in the emerging world. It builds on Cities and Green Growth: A Conceptual Framework (Hammer et al., 2011) and is adapted to the urban policy context of dynamic Asia. Its three main elements are: i) identification of the key policy strategies for urban green growth in fast-growing Asian cities, highlighting similarities to and differences from OECD cities; ii) opportunities for green growth; and iii) enabling strategies for implementing urban green growth.

The growth of urban areas resulting from natural increases in population and migration from rural areas is a global phenomenon.

This report examines the changes that might result from the large-scale uptake of a shared and self-driving fleet of vehicles in a mid-sized European city. The study explores two different self-driving vehicle concepts, for which we have coined the terms “TaxiBot” and “AutoVot”. TaxiBots are self-driving cars that can be shared simultaneously by several passengers. AutoVots pick-up and drop-off single passengers sequentially.
Tokyo is well known as a rail-oriented city where the huge traffic demand generated from the megacity is well supported by a sophisticated urban rail system. The results of the 2008 Person Trip Survey show that rail’s modal share was 30% as of 2008; the economy of Tokyo is highly dependent on an efficient urban rail network. As shown in Kato (2014), Tokyo’s urban rail market has unique characteristics: private rail companies provide many of the rail services, the rail network was developed under the guidance of the central government, rail users suffered from chronic traffic congestion for many years, and the rail market has recently been significantly influenced by a rapidly aging demographic. In spite of its uniqueness, the experiences of urban rail development in Tokyo could be useful for other OECD member countries.
This paper presents an analysis of urban spatial structure and its trends in the OECD between 2001 and 2011. It does so by using a standardised definition of urban areas in 29 OECD countries as composed of high density cores and their respective commuting zones. While urban population is growing everywhere, the way in which populations locate throughout the urban space differs across OECD cities and countries. The prevalent trend is an increasing dispersion of the population, with growth taking place outside existing centres. However, in specific countries, there are cities experiencing a higher growth in their central cores, while others are strengthening their polycentric structures. Overall, the population has grown more in relatively low-density locations close to the main centre, but outside it. Closeness to sub-centres also proves to be a strong advantage for growth and suggests the emergence of new centralities shaping urban spatial structures.

This paper highlights the necessity of a spatial approach to addressing the acceptability problem of road tolls in cities. Few cities have implemented urban congestion charges because of limited public acceptance and perceived distributive impacts. The report focuses on the space consumption of car traffic as opposed to on time losses from road congestion. It shows that by focusing on accessibility, user groups who would be most adversely affected by tolls can be identified and the effectiveness of mitigation measures tested.

This working paper is one in a series of OECD Working Papers on Regional Development of the OECD Public Governance and Territorial Development Directorate, conducted under the responsibility of Joaquim Oliveira Martins, Head of the OECD Regional Competitiveness and Governance Division (www.oecd.org/regionaldevelopment).
China has become the world’s largest urban nation, with over 600 million urban citizens today. Projections indicate that this level may reach 900 million in 2030. The way this urbanisation process is managed will have important policy implications for China and beyond. This paper provides an introduction to urban trends and policies in China. It describes urban growth trends, where and in what kinds of cities growth is occurring, how China’s cities are governed, and how public policy has influenced the extent, pace, and spatial distribution of urbanisation. As China continues to integrate with the globalising economy, its competitiveness will increasingly be driven by the capacities of its metropolitan regions to improve the productivity of enterprises in ever-widening supply chains. The report concludes with a description of some of the key policy challenges facing central and local urban governments in this global context, including: 1) institutional constraints to markets and factor mobility; 2) environmental challenges; 3) ensuring equity and helping vulnerable groups; and 4) metropolitan governance.
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