The report is available here.
Category: Uncategorized
Below are links to materials from the competition, regulation and privatisation session allowing, as with similar threads, for views on the topics and contents of the session to be gathered together.
A very central theme of the presentations and discussions was how reform might stimulate growth and thus reduce the costs of austerity.
Part of Doug Andrew’s presentation on governance is related to the privatisation thread already on the blog here. And, as regulated firms engage in investment, Colm McCarthy’s presentation on investment here could be read alongside some of the presentations from this session.
Although there are no slides from John Fingleton’s talk on competition, there is is a link to a closely-related paper, and you may, in any case, listen to the podcast of his (impassioned) speech, which is to be found from about 24.00 minutes into the recording.
Chair: Cathal Guiomard (CAR)
Richard Tol (Sussex)
Energy Policy and Economic Growth
John Fingleton (UK OFT)
Economic Growth – How Can Competition Policy Help?
No slides but related paper here
Doug Andrew (consultant, ex-airport regulator)
Ownership, Governance and Reform
This World Bank report was written as part of the first Polish Presidency of the European Union Council. The report was launched on January 24 2012 in Brussels. I feel it is a good approach to take a European View of the Crisis. We will see solutions, and problems, differently if they wear our EU hat.
The press release says: The report documents the impressive achievements of the European growth model over the last 50 years. Accounting for the stresses it is experiencing and assessing the longer-term challenges that Europe will face, the report then evaluates the six principal components of the model: Trade, Finance, Enterprise, Innovation, Labour, and Government. It finds that the European growth model has been a powerful engine for economic convergence, helping developing countries in Europe catch up to their richer neighbours and become high-income economies. But recent changes in and outside Europe necessitate change. The report proposes the adjustments needed to make trade and finance work even better, to encourage enterprise and innovation in parts of Europe which have begun to lag, and address shortcomings in the functioning of labour markets and governments. The changes proposed would restart the European convergence machine, make Europe’s enterprises competitive, and help Europeans afford the highest standards of living in the world.
I was a co-author on Chapter 7 (Government), written by Kaspar Richter, Ewa Korczyc, and Paul Walsh. My personal view: Clearly the Economist has picked up on the magnitude of the debt problem facing the EU relative to the rest of the World. It is also important to note that the size and structure of government spending, particularly social spending, while generous compared to the rest of the world, exhibits huge differences across EU member states. The current debate around the fiscal compact is about aggregate fiscal deficits and debt dynamics. Yet the degree to which member states are so different in the level and structure of their social spending is not really appreciated. Tax harmonisation is one thing but maybe some thought should be given to divergences in social spending. As EU citizens facing a potential Fiscal Union, a movement to Eurobonds and increased Political Reform, should Education, Health and Social Welfare supports not be the same for all? Depending on where you live in Europe, and your demographic, and now your debt level, your entitlements can be very different. Some states can deliver a high level of public service and economic growth, even in a high taxation environment, others seem to struggle. Many countries, and the EU as a whole, seem to need a good deal of Political Reform. All these good ideas around growth, and reform of taxation and spending, are all fine but can only be implemented with a major restructuring of Political Institutions at the National, EU level and Global Level. The lack and poor quality of Political Institutions at every level can be blamed for our current situation. Reform of Political Institutions needs to happen to get us back on track. Ireland can contribute at every level in this reform process.
Report can be found on the below.
http://www.worldbank.org/goldengrowth
Here are some quick snapshots from my presentation at Friday’s conference in Croke Park. Some background information can be found in the following:
From 1983 to 2010 capital expenditure averaged nearly 12% of gross voted expenditure. In 2011, capital expenditure was 8.1% of gross voted expenditure, the lowest since 1992.
For the four years from 2012 to 2015 it is planned that capital expenditure will be 6.4% of gross voted expenditure. For every €100 of voted expenditure, €93.60 will go to the current budget (transfer payments, public sector pay, and other non-pay expenditure on goods and services) and €6.40 will go to the capital budget. Would this satisfy the equi-marginal principle?