Corporate Tax Rates: OECD says 130 countries agree to 15 percent minimum corporate tax rate

A total of 130 countries have agreed a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday, but some EU states refused to sign up.

The Organization for Economic Co-operation and Development said in a statement that global companies, including US behemoths Google, Amazon, Facebook, and Apple would be taxed at a rate of at least 15 percent once the deal is implemented. <

The formal agreement follows an endorsement by the G7 group of wealthy nations last month at a meeting in Britain. The negotiations now move to a meeting of the G20 group of developed and emerging economies on July 9 and 10 in Venice, Italy. The new tax regime is to add some $150 billion (€125bn) to government coffers globally.

Read more at: OECD says 130 countries agree to 15 percent minimum corporate tax rate

US Economy- Forecast: oecd-doubles-us-economic-growth-forecast

The Organisation for Economic Co-operation and Development (OECD) has more than doubled its gross domestic product (GDP) growth forecast for the US economy since making its last projections in December. At that time, the OECD said it expected real GDP growth of 3.2% in the US in 2021, but now it expects the US economy to grow 6.5% this year.

If its current predictions are accurate, it would be only the second time since 1966 that US GDP growth exceeded 6%, following behind 1984 when GDP growth was a red-hot 7.2%.

Read More at: ai-cio.com/news/oecd-doubles-us-economic-growth-forecast/

Democracy splutters—good governance under pressure - by Christof Schiller

Eroding standards of democracy and growing political polarisation are severely hampering the implementation of sustainable reforms. This is one of the main findings in the Sustainable Governance Indicators (SGI) 2018 study by the Bertelsmann Foundation.

SGI is an international monitoring tool, which sheds light on the future viability of all 41 countries in the OECD and the European Union. On the basis of 140 indicators, we assess democratic standards, the quality of governance and reforms in the areas of economics, social affairs and the environment. More than 100 international experts are involved in our cross-national survey.

The most recent study highlights how waning standards of democracy and growing political polarisation hamper sustainable reform. Governments in countries including the United States, Hungary and Turkey are deliberately stoking social tensions rather than seeking consensus.

The report shows that the quality of democracy in many western industrial nations is waning, with democratic standards declining in 26 of the countries surveyed, compared with similar data from four years earlier. ‘Even within the OECD and the EU, the model of liberal democracy is subject to growing pressure—in some countries this means that even central democratic and constitutional standards such as media freedoms are already severely damaged or undermined,’ it finds.

Read more at Democracy splutters—good governance under pressure • Social Europe

OPEC - oil demand: OPEC revises world oil demand forecasts up

World oil demand growth in 2017 was adjusted higher from the previous month by 74,000 barrels per day (b/d), mainly to reflect better-than-expected data from China in the third quarter of 2017, OPEC said in its November Oil Market Report.

“As such, world oil demand growth for 2017 now stands at 1.53 million b/d to average 96.94 million b/d,” said the cartel.

For 2018, OPEC expects global oil demand growth at around 1.51 million b/d, revised up by 0.13 million b/d from the previous month’s expectations reflecting the improved expectations from the European members of the Organization of Economic Co-Operation and Development (OECD Europe), OECD Asia Pacific, China, India and some African countries.

Total oil demand is projected to average 98.45 million b/d in 2018, said the cartel.

Read more: OPEC revises world oil demand forecasts up

EU Healthcare: Bad health: EU buries billions with 550,000 premature deaths due to chronic disease

A joint OECD/European Commission report says chronic diseases and premature deaths cost the EU billions every year. It calls for better prevention policies and improved health care. So what else is new?

Health reports seldom say anything new. There's the obligatory risk factors - smoking, alcohol and obesity - and an equally standard call for better prevention policies and improved healthcare systems. Let's face it: We could all live a bit more healthily.

Such is the mainline in "Health at a Glance: Europe 2016," a joint report launched Wednesday (23.11.2016) by the OECD and the European Commission in Brussels.

But what's striking about this report is the human cost of Europe's failing health.

The report estimates that about 550,065 people of working-age (25-64 years) in the European Union die prematurely from chronic diseases. It could be a heart attack, stroke, diabetes, or a form of cancer. And their dying early, says the report, costs the EU 115 billion euros annually.

Note EU-Digest: another issue not discussed in this report, which certainly must be seen as a part of the problem, is that in some countries, like the Netherlands, where insurance programs have been  privatized and the insurance premium costs have continuously been on the rise for the consumer, people have not been going to the Dr. or hospital for preventive care, mainly because of personal economic reasons.

For the complete report Read more: Bad health: EU buries billions with 550,000 premature deaths due to chronic disease | Science | DW.COM | 23.11.2016

European Economy: OECD: European Economy Is Slowly Recovering But New Challenges Are Emerging

The European economy is gradually recovering but further policy action will be required to address unresolved legacies of the global economic crisis that are weighing on growth and major new concerns that have emerged, according to two new OECD reports.

The latest OECD Economic Surveys of the European Union and of the Euro Area, presented today in Paris by OECD Secretary-General Angel Gurría, underline the challenges facing European policymakers. Although growth has gradually strengthened, unemployment in many countries is still high, investment remains below pre-crisis levels in most European countries, and credit growth is still sluggish.

The Surveys project EU GDP will grow by 1.8% this year and 1.9% in 2017, while GDP in the euro area will grow by 1.6% this year and 1.7% in 2017.

‘Europe has put the worst of the crisis behind it, but there is still much more to do to support a full robust recovery that benefits all Europeans,’ Mr Gurría said. ‘Most of the recommendations in these two Economic Surveys have one thing in common: they call for collective action by European countries. Cooperative solutions have enabled Europe to leave the worst of the crisis behind it. But continued cooperation is still needed to implement effective solutions to common problems.

The alternative to collective action is not the status quo, but something worse: the risk that Europe will move backwards. This would jeopardise what has been achieved to date by the Single Market and the rest of the EU acquis, decreasing growth and destroying jobs across Europe.’

The Surveys say that countries with fiscal space should use budgetary spending to boost growth. Given the deep cuts in public investment since the global financial crisis, the reports recommend increasing public support for key investment projects. Enacting broad reforms to tax structures and public spending would also favour growth.

Easing financial constraints would bring benefits across the economy, notably to private sector firms considering future investment plans. This will require addressing one of the legacies of the crisis – the resolution of non-performing loans in many countries, which threaten financial stability and act as a drag on bank credit.

 Waivers could be applied to the new Bank Recovery and Resolution Directive rules to help put in place government-supported schemes when non-performing loans are a serious economic disturbance, the Surveys said.

The Surveys discuss the need for additional steps to deepen the single European market, notably with regard to labour mobility, which can be a key tool to reduce unemployment and boost productivity.

Reducing administrative and regulatory barriers in the services sector and speeding up the recognition of professional qualifications from one country to another would encourage internal mobility, the Surveys said.

Read moreL OECD: European Economy Is Slowly Recovering But Legacies Of The Crisis Remain And New Challenges Are Emerging | Hellenic Shipping News Worldwide

Global Economy: OECD pessimistic about global growth, blames rich world governments

The world is stuck in a “low-growth trap” according to the Organisation for Economic Cooperation and Development.

In its latest twice-yearly review, the OECD said with businesses wary of investing and consumers cautious about spending, the global economy will grow only 3.0 percent this year.

The US is predicted to expand its GDP by 1.8 percent, down from the OECD’s previous forecast of 2.0 percent because of weak foreign demand and less investment in the oil and mining sector.

Thanks to an improved outlook for the French and German economies, the OECD believes the eurozone economy will grow by 1.6 percent this year, better than the 1.4 percent it forecast in February, despite fears of the impact of a Brexit.

Read more: OECD pessimistic about global growth, blames rich world governments | euronews, economy

Tax Evasion: Rich countries failing to address money laundering and tax evasion, says OECD

The world's richest countries are failing to deliver on their pledges to crack down on money laundering and tax evasion, which drains billions of dollars from poor countries, a report said on Wednesday.

The damning assessment from the Organisation for Economic Co-operation and Development (OECD), a group of 34 countries, comes despite tough rhetoric on illicit financial flows from leaders of the G8 group of industrialised countries, particularly the British prime minister David Cameron.

According to Global Financial Integrity, a US NGO, illicit financial flows from developing countries between 2001 and 2010 reached $5.8tn, with China responsible for almost half of the total – five times as much as the next highest source country, Mexico.

At a time of declining official development assistance, donors and aid recipients see the loss of revenues to poor countries through illicit flows as an increasingly urgent problem. The OECD report measures for the first time its members' responses to the flows – money laundering, bribery by international companies, recovery of stolen assets and tax evasion, including abusive transfer pricing (pricing goods to minimise tax payments). In all areas, OECD countries are found wanting.

Anti-money laundering and counter-terrorist financing are governed by 40 recommendations drawn up by the Financial Action Task Force (FATF), an inter-governmental body established in 1989. The recommendations cover areas such as beneficial – or true – ownership of companies, and customer due diligence and record-keeping (knowing customers and understanding their risk profiles).

On average, OECD countries' compliance with key recommendations on money laundering is low, said the report. The lowest areas of compliance includebeneficial ownership and politically exposed people (prominent individuals who can abuse their position).

Read more: Rich countries failing to address money laundering and tax evasion, says OECD | Global development | theguardian.com

'Immigrants no drain on European Economies

Migrants are not a drain on the public purse in developed countries, a pioneering study that measured the net fiscal impact of immigration in 27 Western countries showed on Thursday, contrary to widely held assumptions.

The Organization of Economic Cooperation and Development's (OECD) International Migration Outlook debunks several stereotypes about migration.

To evaluate the burden of migration on welfare systems the report compared immigrants' tax and social security contributions with their receipts in the form of social benefits and government services.

"Overall, it shows that the fiscal impact of immigration is close to zero on average over the OECD ... In other words, migration represents neither a significant gain nor drain for the public purse," the Paris-based club of 34 developed and emerging economies said.

The report comes in the midst of mounting debate in Europe about the benefits of migration, with some countries such as Germany and Britain, complaining that migrants are abusing their generous welfare programs.

It is a complaint also heard from nationalist parties across the continent, whose anti-immigrant platforms are wooing growing numbers of voters.

The OECD report showed that in most developed countries - including the United States, Britain, Germany, the Netherlands and Spain - immigrants are, in fact, net contributors to state budgets.

As a matter of fact Europe could actually use more immigration to combat the problems associated with its aging population.

EU-Digest

World's Happiest Countries: Australia Tops OECD Better Life Index and Turkey lowest- by Andy Reinhard

The Paris-based Organization for Economic Cooperation and Development (OECD) is the latest institution to jump into the happiness-rating business with its new Better Life Initiative, a detailed survey of 24 indicators in 11 categories--ranging from civic engagement to environmental quality--across its 34 member states plus Brazil and Russia.

When all of the categories are weighted equally, the top-performing country in the world is Australia, cited for its strong community spirit and high level of life satisfaction. The lowest-ranked country among those studied was Turkey, whose weak scores on the same two criteria dragged it below Mexico, Chile, and Brazil. The US placed 3rd after Norway.

The OECD emphasizes on its Better Life Initiative web site that the rankings aren't absolute: By changing weightings on the criteria--say, to emphasize education or housing--users can alter the overall country scores according to their areas of interest.

Read more: World's Happiest Countries: Australia Tops OECD Better Life Index - Bloomberg

Privacy Laws: New European project aimed at helping data protection authorities (DPAs) around the world

A consortium of four partners from Belgium, the UK, Spain and Poland has initiated a new European project aimed at helping data protection authorities (DPAs) around the world to improve the enforcement of privacy laws.

The two-year research project, called PHAEDRA, started in January 2013 and is co-funded by the European Union under its Fundamental Rights and Citizenship programme. PHAEDRA is the acronym for “Improving Practical and Helpful cooperAtion bEtween Data PRotection Authorities”. The four partners include Vrije Universiteit Brussel (Belgium), Trilateral Research & Consulting (UK), Universitat Jaume I (Spain) and the Inspector General for Personal Data Protection (GIODO), the Polish data protection authority.

“In the spirit of the ombudsman idea, Member States of the EU have established data protection authorities, who operate de facto privacy help desks that support citizens confronted with privacy and data protection problems, be it spam, identity theft or black lists stored in third countries without data protection. These data protection authorities became a recognisable feature of Europe’s Information Society helping, on a no-cost basis, citizens, companies and state institutions with legal advice or using their administrative and police powers to fight data protection abuses,” says Prof. Paul De Hert, the PHAEDRA project co-ordinator from VUB.

“Every individual today is a battle ground,” says David Wright, Managing Partner of Trilateral Research. “Governments, companies, hackers and other evil-doers are trying to strip away citizens’ privacy. Our principal, poorly-armed defenders are data protection authorities and privacy commissioners.”

Recent rapid development of information and communications technologies have resulted in the increase of cross-border flows of personal data and, in parallel, in elevating privacy and data protection risks. This requires an adequate response to tackle privacy and data protection breaches of a cross-border nature, and hence calls for co-operation amongst DPAs. Such a need was observed as early as the 2000s, and although some efforts have been undertaken, it still remains one of the weakest links in privacy and data protection governance. “In a globalised Internet world, enforcement co-operation among DPAs is vital to ensure the real protection of personal data,” says Artemi Rallo, former director of the Agencia Española de Protección de Datos and professor at Universitat Jaume I.

However, many DPAs, when it comes to international co-operation, face legal and institutional constraints as well as human and budgetary shortages. Looking only at the European context, the Article 29 Working Party, which brings together DPAs from all 27 EU Member States, in one of its 2011 “advises” has identified a number of obstacles and concluded that there is a need to develop rules on co-operation “in a more detailed and specific way” and to “provide clarity on the extent to which information can be shared between DPAs”, among others.

“Even the best-equipped data protection authorities cannot meet all of the demands on their time,” adds Prof Rallo. “To make matters worse, several DPAs have sometimes investigated the same issue, as was the case with Google Street View.” Recently, however, DPAs have been trying to avoid a duplication of effort, so that one DPA investigates an issue and shares the results with his fellow regulators. Such was the case when CNIL, the French data protection authority, investigated on behalf of the Art. 29 Working Party Google’s combining and integrating its privacy policies across different services.

The European Commission has recognised the need for improved co-operation between DPAs. While the proposal for the General Data Protection Regulation strengthens the mechanisms for co-operation between European DPAs, its Article 45 is specifically focused on international co-operation. It says the Commission and DPAs shall “develop effective co-operation mechanisms to facilitate the enforcement of legislation for the protection of personal data” and to “provide international mutual assistance in the enforcement of legislation”.

“Worldwide flows of personal data and corresponding privacy and data protection risks require an adequate global response in order to effectively protect privacy of European citizens. Therefore, European DPAs should not only focus on EU Member States, but also collaborate with countries outside the EU to improve enforcement of data protection legislation against multinational data controllers and others who violate data protection rights,” says Dr. Wojciech Wiewiórowski, Inspector General for Personal Data Protection.

The first major initiative of the PHAEDRA project has been to send a questionnaire to DPAs and privacy commissioners around the world aimed at understanding their perceived needs for improved co-operation and co-ordination and whether their empowering legislation encourages or constrains co-operation. Second, the consortium will review the legislation establishing DPAs to identify whether there are provisions that act as barriers or that inhibit international co-operation and co-ordination and what measures could be taken to reduce such barriers. Third, the PHAEDRA consortium will contact DPAs to determine how the project could reinforce their efforts. The project will conclude with a set of recommendations. The consortium intends to organise three workshops for discussion of co-ordination efforts.

The PHAEDRA project follows several other international initiatives aimed at improving co-operation and co-ordination between DPAs. In 2007, the OECD adopted a Recommendation on Cross-border Co-operation in the Enforcement of Laws Protecting Privacy. The 29th International Conference of Data Protection and Privacy Commissioners (ICDPPC) adopted a “Resolution on International Co-operation” at its meeting in Montreal in 2007. In 2010, 11 privacy enforcement authorities launched the Global Privacy Enforcement Network (GPEN) with a mission to “promote and support cooperation in cross-border enforcement of laws protecting privacy”, primarily by exchanging information between DPAs. The 33rd ICDPPC, held in Mexico City in 2011, adopted an even more detailed Resolution, encouraging more effective co-ordination of cross-border investigation and enforcement. The Article 29 Working Party also has on its agenda enhancing enforcement and promoting international co-operation between privacy authorities.

EU-Digest

International Development - 6 big development business themes in 2012

As 2012 comes to a close, Devex ( International Development Executives) looks back at 6 big development business themes of the year.

In a bid to bolster their positioning in the global aid architecture, emerging economies are ramping up their aid spending and programming. As a full-fledged member of the OECD’s Development Assistance Committee, South Korea’s bilateral programs and multilateral contributions continued to scale. Drawing on their own experiences addressing development challenges, Brazil and Russia are among the new breed of donors stepping up to the plate.

The once spirited talk of a BRICS (Brazil, Russia, India, China and South Africa) multilateral development bank subsided quickly, but India and South Africa appear intent on pushing through with the expansion of bilateral aid agencies modeled after the U.S. Agency for International Development.

Read more: International Development - 6 big development business themes in 2012

Belgium: OECD revises economic outlook for Belgium

The OECD's latest outlook for Belgium puts forward a negative growth of -0.1 percent this year, and a modest growth of 0.5 percent next year. Other organisations have different figures. The European Commission thinks the Belgian economy will shrink 0.2 percent this year, but grow 0.7 percent in 2013.

When drawing up the budget for next year, key ministers counted on a 0.7 percent growth. If this figure is down, Belgium will have to make more cuts.

Read more: flandersnews.be: OECD has revised economic outlook for Belgium

India may surpass US economy over long term, says OECD

India's economy is expected to be bigger than the United States over the "long term" while neighbouring China would emerge as the world's largest economy by 2016, according to Paris-based think tank OECD.

The Organisation for Economic Cooperation and Development (OECD), a grouping of developed and developing nations, today said that divergent long-term growth patterns lead to radical shifts in the relative size of economies worldwide.

"The United States is expected to cede its place as the world's largest economy to China, as early as 2016. India's GDP is also expected to pass that of the United States over the long term.

"Combined, the two Asian giants will soon surpass the collective economy of the G7 nations," it said.

Read more: India may surpass US economy over long term, says OECD - NDTVProfit.com