Making Reform Happen
Aart de Geus
OECD Deputy Secretary General
Policy reforms can be key to prosperity
• Realising the right policy reforms successfully can contribute to the
growth and well being of our societies
• “Good” reforms can help unleash growth potential and will move
economies and societies forward
• This makes the CAPACITY OF GOVERNMENTS TO REALIZE REFORMS
a comparative advantage in the global economy
…but achieving reforms is not easy
a) Progress in policy reform has been uneven across countries and
sectors (eg: compare labour markets, pensions, education or tax
reform): this may be due to difficulties in implementing reforms
b) There are key factors that mediate between policy design and its
realisation: resistance from special groups, administrative capacity,
timing, communication etc.
c) Context matters: reform processes may differ depending on
resource endowment, political systems, cultural background, and
policy objectives
Evidence shows that taking into consideration the “political
economy” concerns can help to Make Reform Happen
WHY OECD?
• Ministers discussed the need for OECD to further work on the area
of policy reform (MCM 2006, 2007, 2008)
• As a forum for governments to compare and exchange policy
experiences, answers and identify good and not so good practices,
OECD can provide good data and evidence base analysis
• We have many key stakeholders in reform at OECD, including CoG
(Centers of Government Network), and Social Partners (BIAC/TUAC)
• We can provide a horizontal/multidisciplinary view through our
specialised Committees and Directorates working in different fields
of public policy and our EDRC working on country studies
EDRC study: successes and failures
• EDRC reviews 10 countries, on reform cases that were
successful and less successful (2009)
• The countries involved are: Australia, France, Germany, Italy,
Mexico, Netherlands, Poland, Spain, Sweden, United States
• 20 cases were selected, varying from retirement reforms to
labour market and product market reforms
• The richness of findings provides some general lessons on
political and economic cycles, communication and
consultation, dealing with opponents
What counts in Making Reforms Happen?
Evidence
Costs and
Benefits
Institutions
reform
dimensions
Timing
Communication
Response to Crisis – Reinforce reform capacity
A report “effective ways to realise policy reforms”
provides “lessons learned” in reform efforts in 10 relevant areas
• The “road to recovery” implies structural reforms in financial
regulations, but also in taxes, pensions, maybe other areas
• The future “Beyond the Crisis” needs solid footing of structural
progress policies, in employment, education, health, innovation,
environment, trade and investment
• The capacity of governments to deliver public goods is challenged,
the question “how to reform and perform?” is urgent
• The OECD report can support reform strategies by presenting
policy options, experience in reform processes, general lessons,
best practices
• Preliminary findings mid 2009, final report early 2010
Action Strand: Partner in Reform
A country - demand - driven support strand:
OECD support to countries in their domestic reforms
• Publications, presentations, country visits by a high-level
representative of the OECD, seminars with key stakeholders, or
direct engagement with countries to provide policy advice
• Mexico: Getting it right, OECD, 2007
• France: Le Pari de la Croissance, 2007
• Hungary: Reforms for Stability and Sustainable Growth, an OECD
Perspective on Hungary, 2008
• Thematic projects (Education, Public Administration, Labour
Market)