The Organization for Economic Cooperation and Development urged governments not to squander the best global growth in three decades by failing to take the steps their economies need to keep expanding.
„A strong recovery makes reforms both easier to implement and seemingly less necessary to undertake, since the threat of major difficulties is fading for a while,” OECD Chief Economist Jean-Philippe Cotis wrote in the introduction of a report released today in Paris. „Temptations to ease up on reforms should undoubtedly be resisted.” The report released today identified weaknesses in all 30 of the economies that form the OECD and recommended policies to insulate and encourage growth.
The US needed to improve education and restrain health-care costs, while European governments should ease business regulation and raise competition, it said. Japan was advised to liberalize services. The OECD pointed to the recent expansion in the European economy as evidence of the rewards that can be reaped by implementing policies that improve the structure of economies. The 13 nations that share the euro are now enjoying greater employment with the region's non-inflationary unemployment rate falling a percentage point over recent years, it said. (Bloomberg)