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6041. Economic Survey of Hungary, 2004

Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
For Hungary to maintain strong growth, macroeconomic policy has to aim for sound and sustainable public finances, low inflation and maintaining the competitiveness of its FDI-driven export sector. Fiscal consolidation has to focus on lasting structural reforms, which bring down the volume of government expenditure in a sustainable way. Revenue increases buy time for the 2004 budget, but thistime has to be used to implement measures that will durably reduce spending in a medium-term framework. The difficult balancing act for monetary policy between achieving inflation targets and steering the exchange rate for entry into the euro zone could be made easier if fiscal targets are achieved. The move to base future budgets on the joint inflation target is a welcome step to improve co-ordination between the government and the Central Bank and should be continued. In wage setting, the indicative wage guidelines should be used to communicate disinflation in the runup to EMU, and thereby limit the risk of unintended real wage increases. Wage moderation should also be assisted by measures which increase the supply responsiveness of labour. Any room created for tax cuts should be used to reduce Hungary's large tax wedge on labour, which interacts negatively with some social benefit programmes. Large regional disparities should be addressed by measures which increase labour mobility and broaden investment across regions through further improved infrastructure. Business conditions can be further improved by addressing the low level of competition in some network industries and more generally improving the conditions for market entry in the domestic sector. The considerable costs of programmes to reduce the emission of greenhouse gases and also more local air pollutants could be reduced with the wider application of economic instruments. Hungary will only be able to reap the full benefits of European Union accession and EMU entry if it establishes a sound macroeconomic framework, boosts labour force participation and sustains high productivity growth.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Hungary

6042. Science and Innovation Policy: Key Challenges and Opportunities

Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Science and technology exert a growing influence on society and the economy. Scientific achievements continue to expand the frontiers of knowledge and increasingly contribute to the technological progress that affects how people live and work. New science-based technologies help protect the environment, build safer homes, schools and factories, and develop energy- saving transport systems. Advances in genetics save lives and improve health standards throughout the world. Industries based on new technologies employ millions of highly skilled workers in the OECD and beyond. Information and communications technologies (ICT) have enhanced their productivity and made it possible for a greater number of individuals, firms and countries to take part in the knowledge-based economy.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy

6043. Economic Survey of the United Kingdom, 2004

Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The performance of the UK economy has been impressive in recent years, underpinned by wide-ranging structural reforms and sound macroeconomic policy frameworks. The OECD projects growth above potential in 2004 and 2005, with unemployment remaining low, but instability stemming from the housing market is a risk. Monetary policy should continue to tighten to reduce future inflationary pressures and the risk of a further sharp rise in house prices from becoming a potential source of fragility. At the same time, the current rigidity of house supply should be eased by reforming land planning, while a reform of the regressive council tax could help to reduce the risk of housing market instability. Over the projection period, government spending will continue to rise as a share of GDP, reflecting the government's ambitious targets in priority areas. Slowing spending growth may be warranted on efficiency grounds: bottlenecks have become apparent, while time is needed to pilot new innovative approaches. More generally, getting incentives right is essential to meet the ambitious service targets. Slowing spending growth would also benefit the public finances. An income-contingent contribution scheme for university graduates is an equitable way forward; other forms of user charges not compromising equity concerns could improve efficiency. Both are preferable to raising taxes. Trend growth has already been boosted by the sharp decline in structural unemployment, but measures are still needed to reduce the number of inactive, especially those on incapacity benefit. While educational performance of students has risen, policy needs to further address the lack of vocational skills as one element in a strategy to reduce the productivity gap with the best performers elsewhere. In this respect, competition is also important. The government has strengthened the competition framework and active enforcement along with the market studies of the Office of Fair Trading and the Competition Commission's market investigations should help to ensure that markets become more competitive. However, planning restrictions and market power are a problem in the retail sector and industry regulators will need to remain vigilant in the electricity, gas and telecom sectors. Ensuring macroeconomic stability, while addressing the remaining weaknesses through further structural reforms offers the prospect of continuing strong economic performance.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
United Kingdom

6044. China's Route to a Green and Prosperous Future

Author:
Roger Bate
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
By opening its economy to greater domestic and foreign investment in the technologies needed to reduce greenhouse gas emissions, China can dramatically improve its environmental record while becoming richer. The same promise holds for other developing countries as well.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
China

6045. America Passes the Religious Test

Author:
James Q. Wilson
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Contemporary concerns about the influence of religion in U.S. politics tend to ignore the significant contributions made by religion in shaping American democracy. Pluralism of sects explains why religion has been so important in U.S. history and continues to thrive in America.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
United States and America

6046. Tear Down This Tyranny

Author:
Nicholas Eberstadt
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The United States must develop a new approach to the North Korean nuclear crisis based on the dual realizations that we will not likely talk North Korea out of its nuclear weapons program or see much improvement under the regime of Kim Jong Il.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
United States and North Korea

6047. China Should Trust in Capital Markets

Author:
R. Glenn Hubbard and William Dudley
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
A critical factor in China's long-term economic growth is the development of its capital markets, which if properly organized could foster greater productivity, increased wages, and employment growth.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
China

6048. A New Style for a New Mandate

Author:
David Frum
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Having won an electoral mandate, President George W. Bush now must restore bipartisanship to U.S. foreign policy in order to realize the goal of a Middle East transformed by freedom and democracy.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
United States and Middle East

6049. Why Did Kerry Lose? Answer: It Wasn't "Values"

Author:
James Q. Wilson
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Post-election analysis has focused on the importance of "moral values" in the presidential campaign, yet a closer examination of the numbers reveals that a variety of issues and the success of organizational strategies in both parties played a bigger role in the outcome.
Topic:
International Relations, Foreign Policy, Democratization, and Economics

6050. Seizing a Stable Majority

Author:
Newt Gingrich
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Building on their victories in the 2004 elections, Republicans can achieve a durable governing majority, if they implement health care reforms, include more minorities in developing and implementing policies, and learn from their mistakes.
Topic:
International Relations, Foreign Policy, Democratization, and Economics