Committee Opinion | Doc. 14410 | 06 October 2017
The activities of the Organisation for Economic Co-operation and Development (OECD) in 2016-2017
Committee on Social Affairs, Health and Sustainable Development
A. Conclusions of the committee
(open)B. Proposed amendments to the draft resolution
(open)Amendment A (to the draft resolution)
At the end of paragraph 2.2, add the words “, and is targeted with due regard to their international obligations, in particular the Paris Agreement;”.
Explanatory note:
Developed countries subsidise the fossil fuel industry, both through paying the cost of externalities like air pollution and climate change and through preferential treatment, tax breaks or direct subsidies. A fiscal stimulus package that exacerbates these trends may stimulate short-term growth at the expense of long-term sustainable development.
Amendment B (to the draft resolution)
After paragraph 2, insert the following paragraph:
“The enlarged Assembly underlines the importance of balanced multilateral trade relations for enhancing prosperity for all and securing fundamental rights, sustainability, social peace and fully functioning democracy. It encourages the OECD to pursue its research on the impact of evolving trade and investment protection arrangements on fundamental rights, democracy and the rule of law. The enlarged Assembly also calls on the OECD to evaluate the implications for development in the light of Brexit and President Trump’s rejection of the Paris Agreement on climate change.”
Explanatory note:
Multilateral trade (and investment) affects many areas of life and is central to the healthy balance of private commercial goals and public interests, both in the short and long term. The OECD’s research on the interaction between trade and investment deals with fundamental rights, democracy and the rule of law should help politicians make informed policy choices.
Amendment C (to the draft resolution)
After paragraph 2, insert the following paragraph:
“Whilst supporting the need for quantitative and dynamic growth, the enlarged Assembly urges member States to adopt a more comprehensive approach to development by fostering quality, sustainable and inclusive growth that brings long-term benefits to society and preserves the planet’s resources. It asks the OECD to explore the link between fossil fuel subsidies and renewables in achieving sustainable development, in addition to problems of market abuse.”
Explanatory note:
A currently prevalent development model relies on quantitative growth that often neglects sustainability. Greater emphasis on sustainable development is necessary so as to optimise growth and ensure a fairer distribution of the benefits of growth.
Amendment D (to the draft resolution)
At the end of paragraph 11.1, add the following phrase:
“, notably by fighting the development of new forms of poverty associated with precarious, low-paid work and imposed part-time contracts”.
Explanatory note:
Precarious work and underemployment do not guarantee a decent income and they give rise to new forms of poverty. They put a strain on the State budget as a result of increased demand for social benefits. Public authorities should counter this trend and ensure minimum income security through work.
Amendment E (to the draft resolution)
In paragraph 11.3, replace the words “to concentrate on education and skills measures” with “to invest in education, skills, training, youth employment and social services”.
Explanatory note:
States should not only promise support to the most disadvantaged households, but also financially enable equal opportunities for those who can least afford them. “Social services” is a more appropriate term to describe early childcare and other pro-family policies highlighted in this paragraph.
Amendment F (to the draft resolution)
In paragraph 11.3, replace the words “upgrading skills” with the “lifelong upgrading of skills in an inclusive manner”.
Explanatory note:
Lifelong training is necessary to help people break the trap of long-term unemployment and obsolescence at all stages of life.
Amendment G (to the draft resolution)
In paragraph 11.3, after the words “those leaving the education system” insert “, in particular among those leaving the education system early”.
Explanatory note:
Mismatches between business demands and the existing skills pool are particularly high among those affected by early school dropout, according to the OECD’s research. These penalise workers’ employability all their life.
Amendment H (to the draft resolution)
After paragraph 11.3, add the following paragraph:
“to submit trade agreements, in particular investment chapters, to in-depth scrutiny so as to ensure that they will make a notable impact on growth with benefits spread across society rather than concentrated in certain groups.”
Explanatory note:
Trade and investment agreements are an important part of multilateral efforts to pursue growth. It is not clear whether such agreements, as they are currently framed, will result in anything more than negligible growth in developed countries. Moreover, such growth might not be distributed evenly throughout society. The policy case for trade agreements has not, hitherto, taken these uncertainties sufficiently into account.
Amendment I (to the draft resolution)
At the end of paragraph 12, add the following sentence:
“It also calls on the OECD to investigate the impact of trade and investment agreements on inequality.”
Explanatory note:
Having established that inequality is a drag on growth, further analysis of the policy prescriptions for tackling inequality is required.