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Institutions to Promote Pro-Productivity Policies: Logic and Lessons

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  • Gary Banks

Abstract

In order to promote productivity, and thus boost living standards in the long run, public policies need to focus on improving incentives, capabilities and flexibility within an economy. Such policies can be difficult for governments to devise and even more difficult for them to implement, given pressure group politics and fragmented administrative structures. A strong case exists for establishing public institutions that not only help governments identify the right policies, but that can also help them counter pressures against reform and inform the community about what is at stake. Necessary design features for such institutions include independent governance, transparent processes, solid research capacity, an economywide frame of reference and linkages to policy-making mechanisms within government. This paper provides a taxonomy of relevant institutional forms evaluated against these criteria. While the contribution of most organisations to ‘pro-productivity’ policies is incidental to their primary function, some have been expressly designed for this purpose. The extent of their contributions in practice has depended on the detail of their governance and operations, the tasks they have been assigned and how well governments have handled their reports. While there is no ‘one design fits all’ solution, there is considerable scope for most governments to strengthen institutional capability in this area. There is also potential for governments to learn from each other about the relative merits of different approaches, and for existing institutions themselves to build capability by drawing on the experience of others. Les institutions de promotion des politiques de productivité : Logique et enseignements Dans l’optique d’une meilleure productivité et par conséquent, d’une hausse des niveaux de vie sur le long terme, les politiques publiques doivent porter prioritairement sur l’amélioration des mesures incitatives, des capacités et des marges de manoeuvre dans l’économie. Les pouvoirs publics peuvent trouver difficile de concevoir de telles politiques et encore plus difficile de les mettre en oeuvre, vu la politique des groupes de pression et la fragmentation des structures administratives. La mise en place d’institutions publiques qui aident les pouvoirs publics non seulement à identifier les bonnes stratégies, mais également à lutter contre les pressions exercées à l’encontre des réformes, et qui expliquent les enjeux à la collectivité, se justifie tout à fait. Ces institutions doivent présenter un certain nombre de caractéristiques : indépendance de leurs structures de gouvernance, transparence des procédures, des capacités de recherche solides, un cadre de référence macroéconomique et une imbrication dans les mécanismes décisionnels du gouvernement. Le présent document propose une classification des structures institutionnelles concernées, évaluées à l’aune de ces différents critères. Si le concours de la plupart de ces structures aux politiques de productivité est accessoire par rapport à leur fonction première, certaines ont été conçues expressément à cette fin. L’étendue de leur contribution concrète dépend des modalités de leur gouvernance et de leur fonctionnement, des missions qui leurs sont confiées et du traitement que les pouvoirs publics réservent à leurs rapports. S’il n’existe pas de « solution passe-partout », il y a amplement matière à renforcer la capacité institutionnelle de la plupart des gouvernements dans ce domaine. Ces derniers ont également la possibilité d’apprendre les uns des autres les mérites respectifs de chaque logique, cependant que les institutions existantes ont la possibilité de renforcer leurs capacités en s’appuyant sur l’expérience de leurs homologues.

Suggested Citation

  • Gary Banks, 2015. "Institutions to Promote Pro-Productivity Policies: Logic and Lessons," OECD Productivity Working Papers 1, OECD Publishing.
  • Handle: RePEc:oec:ecoaac:1-en
    DOI: 10.1787/5jrql2tsvh41-en
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    Cited by:

    1. Anna Valero & Bart van Ark, 2023. "A new UK policy institution for growth and productivity – a blueprint," Insight Papers 027, The Productivity Institute.
    2. Sean Dougherty & Andrea Renda, 2017. "Pro-Productivity Institutions: Learning from National Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 196-217, Spring.
    3. Pessino, Carola & Izquierdo, Alejandro & Vuletin, Guillermo, 2018. "Better Spending for Better Lives: How Latin America and the Caribbean Can Do More with Less," IDB Publications (Books), Inter-American Development Bank, number 9152, November.
    4. José Ernesto López Córdova & Juan Rebolledo Márquez Padilla, 2016. "Productivity in Mexico: Trends, Drivers and Institutional Framework," International Productivity Monitor, Centre for the Study of Living Standards, vol. 30, pages 28-42, Spring.

    More about this item

    Keywords

    institutional design;

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • K2 - Law and Economics - - Regulation and Business Law
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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