OECD Economic Surveys: Czech Republic 2016 (eBook)

Oecd (Autor)

eBook Download: EPUB

2016 | 1. Auflage
132 Seiten
OECD Publishing (Verlag)
978-92-64-25723-8 (ISBN)

Infos

This 2016 OECD Economic Survey of the Czech Republic examines recent economic developments, policies and prospects. The special chapters cover: Fostering productivity for sustainable convergence; Public sector effectiveness.

Inhalt

Table of contents 5
Basic statistics of Czech Republic, 2015 9
Executive summary 11
Growth has picked up temporarily 12
Real GDP growth 12
Strengthening innovation policies and market regulations to bolster productivity 12
Convergence in labour productivity has stalled 12
Improving the effectiveness of the public sector 12
Public administration performance indicator 12
Assessment and recommendations 15
Turning to long-term challenges while the economy is growing 16
Key challenges for stronger and inclusive growth 16
Figure 1. Growth has picked up 16
Figure 2. Measures of well-being 17
Table 1. Indicators of well-being relative to other OECD countries 17
Figure 3. Inequality and poverty are relatively low but vary across regions 18
Figure 4. Labour productivity has disappointed since the crisis1 19
The economic outlook is positive 19
Table 2. Macroeconomic indicators and projections 20
Figure 5. Czech economic developments 21
Table 3. Potential vulnerabilities of the Czech economy 21
Monetary policy 22
Figure 6. Foreign exchange market and inflation 22
Figure 7. Indicators of potential macro-financial vulnerabilities 23
Fiscal sustainability 24
Table 4. Fiscal indicators 24
Table 5. Key features of the proposed fiscal framework 25
Figure 8. Debt dynamics taking into account macroeconomic shocks 26
Figure 9. Use of electronic tax filing is low 27
Figure 10. VAT revenue loss due to tax avoidance and evasion is above the EU average 27
Structural challenges 28
Progress on structural reform recommendations from previous Surveys 28
Future pension adequacy may pose a challenge for public finances 29
Figure 11. The impact of ageing on public finances 29
Figure 12. The benefit ratio is declining over time 30
Improve inclusiveness through a gender balance agenda and better integration of minorities 30
Figure 13. Gender gaps in the labour market are large 31
Figure 14. Challenges for social inclusion 33
Greener growth through more co-ordinated and cost-effective policies 33
Figure 15. Reducing air pollution is important for the environment and Czechs’ health 34
Fostering productivity for better living standards 35
Figure 16. Stalled convergence of the Czech Republic 35
Figure 17. Weak output is the main drag on productivity at the aggregate level 36
Figure 18. The labour productivity shortfall in the Czech Republic is mainly structural 36
Strengthening R& D and innovation policies to foster productivity
Figure 19. Business R& D intensity
Framework conditions are key for productivity 39
Figure 20. Reducing the extent of skill mismatch would increase labour productivity 41
Figure 21. The cost of bankruptcy proceedings is high 42
Figure 22. Self-employment is high 43
Enhancing the effectiveness of the public sector 43
Figure 23. Expenditure and performance for public administration are low 44
Increasing the effectiveness of the public administration 43
Reducing wastage and increasing value from public procurement and investment 45
Figure 24. Public investment has been volatile and lacking in some areas 46
Realising the benefits of decentralisation 47
Figure 25. Czech municipalities and regions are among the smallest in the OECD 48
Figure 26. Educational attainment is consistently good but the system could be organised more efficiently 49
Bibliography 50
Annex. Progress in structural reform 53
A. Strengthening the fiscal framework and fiscal sustainability 54
B. Promoting competition and improving the business environment 54
C. Reforming education and strengthening skill use and school-to-work transitions 55
D. Improving health spending efficiency 55
E. Making the tax structure more growth and employment friendly 56
F. Achieving efficiency in the energy system 56
Chapter 1. Fostering productivity for income convergence 59
Introduction 60
Figure 1.1. GDP per capita 60
Figure 1.2. Decomposition of GDP growth 61
The productivity growth rate slowdown is structural 61
Labour productivity and total factor productivity growth rates have declined 61
Figure 1.3. Labour productivity has disappointed since the crisis1 62
Figure 1.4. The labour productivity shortfall is mainly structural 63
Contribution of sectoral productivity to total productivity is slowing down 63
Figure 1.5. Labour productivity by main activity 64
Investment and capital accumulation growth have receded 64
Figure 1.6. Capital accumulation has been undermined by the crisis 64
Leveraging R& D and innovation policies to foster productivity
The R& D and innovation performance are not yet satisfactory
Figure 1.7. Research and development expenditure by sector 65
Figure 1.8. Business R& D intensity
Figure 1.9. Innovation performance is moderate 66
Figure 1.10. Innovation is moderate in manufacturing and services sectors 67
Figure 1.11. Innovation results are not in line with spending: illustration from the ICT sector 68
Increase and better target R& D and innovation funding
Box 1.1. Technology Agency of the Czech Republic 70
Streamline the administration and implementation of innovation policy 72
Box 1.2. Czech innovation policies and bodies: a complex organisational structure 73
Upgrading the innovation system will increase productivity and competitiveness 74
Figure 1.12. Share of higher education R& D financed by industry
Figure 1.13. Externally developed goods and services used in innovation 75
Appropriate framework conditions are needed to increase productivity 76
Removing obstacles for firm expansion and start-up creation will boost productivity 76
Figure 1.14. Labour productivity of small firms is low 78
Improving the management quality of Czech firms 77
Figure 1.15. Indicators of management quality and practices 79
Figure 1.16. There is a large difference in managerial quality by firm size 79
Table 1.1. Management outcomes by ownership and sector 80
Skill mismatch is high and likely affecting productivity 80
Figure 1.17. A relatively high share of Czech workers are over-skilled 81
Box 1.3. Skill mismatch and worker characteristics 82
Table 1.2. Overskilling and worker characteristics 82
Figure 1.18. Estimated labour productivity gains from moving policy-related factors to best practice 83
Raising competition and resource re-allocation to boost productivity 84
Figure 1.19. The cost of bankruptcy proceedings is high 85
Figure 1.20. Consumer market scoreboard: Czech Republic versus EU average 86
Figure 1.21. Barriers to entrepreneurship, 2013 87
Box 1.4. The Czech-Moravian Guarantee and Development Bank 87
Box 1.5. SME financing programmes 88
Figure 1.22. Business loan growth of financial institutions 90
Leveraging the high participation in global value chains to increase productivity 90
Figure 1.23. Participation in global value chains is high 90
Figure 1.24. Intermediate inputs in key manufacturing sectors 92
Figure 1.25. Services outsourcing and labour productivity growth in the manufacturing sector 93
Recommendations to foster productivity growth and income convergence 94
Bibliography 94
Chapter 2. Enhancing public sector efficiency and effectiveness 97
Enhancing the effectiveness of public spending 98
Figure 2.1. Comparing the efficiency of public administration across OECD countries 99
Box 2.1. Strategic Framework of the Development of Public Administration for 2014-20 100
Table 2.1. Summary of objectives 100
Using public procurement for efficient provision of public services 99
Figure 2.2. Public procurement spending by level of government 101
Figure 2.3. Indicators of competition in public procurement 102
Table 2.2. Comparing procurement across types of government 103
Maximising the impact of public investment spending through better planning and implementation 103
Figure 2.4. Infrastructure investment has fallen and is still needed in some areas 104
Figure 2.5. Government investment has been volatile and procyclical 104
Figure 2.6. Size and absorption of the 2007-13 programme of EU structural funds 105
Box 2.2. OECD recommendations for effective public investment across levels of government 106
Table 2.3. Key principles for effective investment 106
Better management of human resources 107
Figure 2.7. Gaps in human resource practices were affecting the civil service 108
Box 2.3. The new Civil Service Act 110
Focussing on performance to evaluate and reinforce improved processes 111
Figure 2.8. There are gaps in the usage and availability of some e-government services 112
Box 2.4. E-Government tools in the Czech Republic 113
Realising the benefits of decentralisation 112
Figure 2.9. Sub-national government spending is concentrated in a few functions 114
Table 2.4. Scope for sub-national discretion and autonomy 114
The current territorial division is fragmented and complicated 113
Figure 2.10. Czech municipalities and regions are among the smallest in the OECD 115
Figure 2.11. Czech cities are among the most territorially fragmented in the OECD 116
Table 2.5. Distribution of municipalities by key functions performed 117
Box 2.5. Voluntary associations of municipalities (VAMs) 118
Better matching size and function to overcome fragmentation 117
Figure 2.12. Relationship between cost of public services and municipality size 119
Figure 2.13. Educational attainment is consistently good but the system could be organised more efficiently 120
Box 2.6. Other OECD countries’ experiences in overcoming territorial fragmentation 122
Using revenue decentralisation with performance indicators to improve service delivery 123
Table 2.6. Structure of sub-national government revenue 123
Table 2.7. Summary of distribution of shared taxes to sub-national governments for 2016 124
Strengthening the macro-fiscal framework 125
Table 2.8. Indebtedness is low in most municipalities 126
Recommendations to enhance public sector effectiveness and efficiency 126
Recommendations to enhance public sector effectiveness and efficiency (cont.) 127
Bibliography 127

Textauszug

Annex Progress in structural reform

The objective of this annex is to review action taken since the previous Survey (March 2014) on the main recommendations from previous Surveys that are not reviewed and assessed in the current Survey.

A. Strengthening the fiscal framework and fiscal sustainability

Recommendations in previous Surveys	Action taken

Use a multi-pronged approach to secure fiscal sustainability. Take steps to secure an increasing effective retirement age. Continue to ensure that the indexation of pensions does not lead to old-age poverty problems. Consider options for diversifying income sources for pensioners. An additional measure could be to bring forward the increases in the statutory retirement age.

An Expert Committee on Pension Reform will prepare reform proposals to stabilise the system in the long run.

Improve financial literacy and awareness of the population. Prepare regular reports on pension prospects to inform the public about their future retirement incomes.

Since 2015 citizens can access their pension account online and calculate their entitlement. The Czech Social Security Agency now automatically mails basic information on pension accounts to people approaching retirement age.

Improve transparency of budgetary documentation. Include a regular tax expenditures report in the annual draft budget proposal.

Citizens’ Budgets and tax expenditure reports are now published on the Ministry of Finance website. Since January 2015 a catalogue of open data is available on the Ministry of Finance website. Data meet transparency and openness requirements of the Open Government Partnership and include the budget, state debt and audits executed.

Establish a responsibility for the government to announce a debt target that is translated into medium-term expenditure ceilings broken down to individual ministries’ targets.

No action taken. A different approach based on the structural balance was chosen.

B. Promoting competition and improving the business environment

Recommendations in previous Surveys	Action taken

Improve the managerial integrity of remaining state-owned enterprises by concentrating governance within a single authority. Privatise and divest business-related state-owned enterprises and activities.

A policy document on state ownership is being prepared. No significant action has been taken on privatisation.

Ensure that the leniency programme is working properly to unearth cartels, and that efforts to eliminate bid-rigging are successful. Remove the special sector regulation for food retailing from the competition policy framework.

In 2014 the Office for the Protection of Competition issued 7 decisions on prohibited horizontal agreements. In 2015 the Office issued 3 decisions on cartels, one of which involved the highest overall fine imposed by the Office. The number of leniency applications received by the Office has been increasing and applications are better targeted and well prepared. In response to complaints against the wording of the Act on the Significant Market Power in the Sale of Agricultural and Food Products, the Office drafted an amendment to ensure more efficient enforcement of the specific provision.

Secure effective independence for all network regulators, improve the co-ordination between the competition authority and regulators, and have a common approach to what constitutes a proper definition of market dominance.

No action taken.

Tackle vertical constraints on competition via effective ownership unbundling or via holding structures with financial separation of all activities that counters the risk of cross-subsidisation.

No action taken.

Increase the speed and reduce the cost of judicial proceedings, particularly in respect of contract enforcement and bankruptcy.

The Attorney’s fee was significantly reduced in July 2015, reducing the cost of proceedings. Draft legislation to increase the speed of judicial proceedings will be presented to the Government in 2016. The Ministry of Justice has also prepared a draft legislative proposal to simplify insolvency proceedings.

Strengthen mechanisms for screening regulatory impact assessment (RIA) when legislative proposals are considered.

To strengthen RIA, in 2015 professional chambers were added as new subjects in the comment procedure within the legislative process.

C. Reforming education and strengthening skill use and school-to-work transitions

Recommendations in previous Surveys	Action taken

Encourage employers to provide training to young unskilled workers through tax subsidies or targeted reductions in social security contributions. Looking ahead, if the statutory minimum wage increases sufficiently, an additional measure could be the introduction of a youth minimum wage linked to training.

No action taken.

Increase participation of private employers in vocational education by simplifying institutional frameworks and governance.

New measures to promote co-operation between schools and enterprises include tax benefits for employers who allow practical teaching in their workplace and conclusion of voluntary contractual relationships between a pupil/student and an employer. The Ministry of Education, Youth and Sports (MEYS) in co-operation with the Confederation of Industry of the Czech Republic implemented the “POSPOLU” project aimed at mapping and encouraging co-operation between schools and enterprises, to provide professional training of students in a real work environment.

Introduce a contractual employment relationship between the apprentice and the employer.

In 2015 the MEYS published a Recommendation and model contracts for concluding the contractual relationship between employers and secondary school students or higher vocational school students.

Expand workplace training by providing subsidies to the participating firms for difficult to place students.

The “Internships for Youth 2” project was implemented from February 2014 to November 2014, following on from “Internships for Youth 1” (2012-14) within the Operational Programme “Human Resources and Employment”. The project offered students in the last year of secondary school, college and university the opportunity to gain practical experience (of 1–3 months). Employers received a financial contribution during the practical training. Follow-up of the project is under discussion.

Secure quality in the provision of tertiary education by introducing output-based accreditation criteria and student fees to increase resources for the provision of public tertiary education, accompanied by a mixed system of means-tested grants and income-contingent repayment loans.

The 2016 amendment to the Higher Education Act obliges higher education institutions to perform internal quality assessments focused mainly on the outputs of their activities. Outcomes of these assessments will be part of the documentation for the accreditation process.

Avoid elitism in secondary education, including phasing out streaming at the age of 11, and strengthen benchmarking of schools and students.

Avoiding premature streaming of children into different education paths is part of the first strategic priority (Reducing Inequality in Education) of the Strategy of Education Policy of the Czech Republic to 2020 that was adopted by the government in July 2014.

D. Improving health spending efficiency

Recommendations in previous Surveys	Action taken

Review in-patient capacity and prepare a national capacity plan to guide medium-term contracts with providers, as well investments and equipment purchases.

No action taken.

Introduce compulsory active substances prescription and an electronic prescription system. Stimulate co-ordinated purchases and auctions of drugs and other supplies.

An electronic prescription system is being developed.

Introduce soft gate-keeping to improve care management.

No action taken.

Implement plans for e-Health while ensuring adequate security and resources for implementation.

A national e-Health strategy is expected to be released in 2016. It will include identifiers, metrics and feasibility studies. The Ministry of Health is seeking support from EU structural funds....

Produkt-Details

• Erscheint lt. Verlag: 6.6.2016
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung ► Staat / Verwaltung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik
• ISBN-10: 92-64-25723-3 / 9264257233
• ISBN-13: 978-92-64-25723-8 / 9789264257238