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Policy reset can deliver stronger post-pandemic recovery: OECD
By TII News Service
Apr 16, 2021 , Paris

    

THE COVID-19 pandemic has brought social and economic disruption worldwide, but is also providing governments with the opportunity to put economies on a more sustainable and inclusive growth path while addressing the underlying challenges, according to an Organisation for Economic Cooperation and Development (OECD) report.

"The pandemic is a painful reminder that the nature of our past growth was often unsustainable and left many people behind," said OECD Secretary-General Mr Angel Gurria. "The recovery is an opportunity to set our policies right, to achieve growth that is stronger, equitable, sustainable and more resilient. And for this to happen, governments have to act now."

The report's recommendations provide a basis for G20 discussions on strategies to push forward a vibrant economic recovery and promote higher-quality growth via policy reforms to build resilience, facilitate reallocation and supporting people in transitions.

Structural policies can improve the first line of defence to shocks in healthcare and social safety nets, and critical infrastructure. Steering growth in a more durable, resilient and inclusive direction requires structural policy action to increase job dynamism and support firms becoming more dynamic, more innovative and greener, said the report.

Policies should ensure that people are not left behind in transitions, so that reallocation is socially productive and builds resilience.

The report also highlights the crucial importance of countries acting together – in particular in the case of challenges that span borders.

It identifies healthcare, climate change, international trade and the taxation of multinational enterprises as the areas where international cooperation is needed to enhance the effectiveness of domestic policies and underpin the shift to more sustainable, resilient and equitable globalisation.

 
 
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