Itinera Institute

Luncheon Lecture: “Green cars: the salvation of the car industry?”

Fri, 26 Mar 2010 12:00:00 +0100

It’s all over the media, and politicians talk about it non-stop: Green cars are the ultimate answer to decaying car industry. Everyone agrees that we need a solid industrial policy, but should the government invest massively in green cars? Johan Albrecht, environmental economist and senior fellow at the Itinera Institute examines the case. Victor Heylen, a car industry analyst reacts.

State capitalism is the real enemy of fair free-trade

Wed, 10 Mar 2010 12:00:00 +0100

State capitalism is the real enemy of fair free-trade

Wed, 10 Mar 2010 12:00:00 +0100

A new study from the World Trade Organization reports no significant intensification of trade or investment restriction since September 2009. This is good news for anyone who values global prosperity, and that includes Belgium. But Marc De Vos warns us of a more fundamental threat: the rise of state capitalism right after the crisis. The trend to State-led economic development goes against the principles of free trade, the same principles that gave us more global welfare.

A higher State Pension Age in the UK

Tue, 09 Mar 2010 12:00:00 +0100

In the UK, a higher State Pension Age (SPA) has been accepted by the government as one of the solution to the ageing challenge. It will gradually increase from 65 to 68 years between 2024 and 2046. In Belgium, such a measure is very unpopular among trade unions and politicians. In this report, PwC analyzes this measure in the UK in terms of fiscal benefits, public finances, workers’ opportunities and employers’ attitudes. With the perspective of a SPA increase, PwC gives an agenda for action to the economic agents implied in the process.

European Cities accommodating diversity

Tue, 09 Mar 2010 12:00:00 +0100

With increasing migration flows, governments increasingly face integration issues, and not the least in our capital. Local governments have a role to play mainly as providers of public goods and services but also as policy-makers and employers. In the context of a European project (DIVE), this paper from the Migration Policy Group provides concrete recommendations to European cities to promote diversity and equality within the context of a local integration strategy. The performance of Amsterdam, Rome, Leeds, Berlin and London is analyzed with respect to defined benchmarks. We can undoubtedly learn from some of their good practices.

The high cost of low educational performance

Tue, 09 Mar 2010 12:00:00 +0100

Experiences from some OECD countries prove that it is worth making some efforts in educational system reform. Through different scenarios on the increase of school performance in terms of PISA points, this OECD report shows how the improvement in educational quality and later in the labour force’s skills can impact on future well-being. By refusing educational reform programmes, we take the risk of inflicting high economic costs to society, the authors conclude.

The healthcare sector: daring to look at 2020

Thu, 04 Mar 2010 12:00:00 +0100

With two interesting studies in less than two months, 2010 promises to become a fascinating year for Belgian healthcare. The ideas presented in these studies are appealing for two reasons: first because the authors reason in the middle and long term, and second because they dare questioning the current way of working. One thing is sure: the future needs a new vision and new solutions.

The healthcare sector: daring to look at 2020

Thu, 04 Mar 2010 12:00:00 +0100

Philanthropy, also in times of crisis

Wed, 03 Mar 2010 12:00:00 +0100

Philanthropy, also in times of crisis

Wed, 03 Mar 2010 12:00:00 +0100

Philanthropy could be considered as an economic activity that creates welfare: a donation of 500 Euros, for example, means that the act of giving is worth more to the donator than the given amount of 500. The receiver’s welfare will increase too, and therefore we could speak of a philanthropy multiplicator effect. Encouraging philanthropy by fiscal means can thus be seen as creating value added.

Administrative costs in Belgium

Mon, 01 Mar 2010 12:00:00 +0100

Between 2006 and 2008, administrative costs have decreased by 23% to reach €5.92 billions. To what extend can these costs be an obstacle to companies’ development and functioning in Belgium? Did the administrative simplification process have the expected impact? This Federal Plan Bureau report allows us to know how the self-employed and companies perceive all this.

Exiting from crisis intervention policies

Mon, 01 Mar 2010 12:00:00 +0100

Now that the crisis is progressively disappearing, what to do with the crisis-related intervention measures? Even if we want to restore and guaranty economic recovery, maintaining such measures on the long run is not recommended at all. It would in fact distort private initiative, financial and fiscal policies and risks stirring up inflation. In this IMF paper, the authors make recommendations on exiting from those measures. It exposes the main principles and guidelines to follow when defining new fiscal, monetary and financial policies.

The Walloon innovation system

Mon, 01 Mar 2010 12:00:00 +0100

Like other Belgian and European regions, Wallonia knows that innovation remains an important trigger of economic growth. This Federal Plan Bureau publication makes an evaluation of the Walloon innovation system of 2007. The involvement of high schools and universities into research and the ability of the private sector to mobilize resources for research receive good marks. However, investments in innovation is relatively low for services compared to those in the industry. Public effort in R&D and the use of permanent training on the labour market have to be reinforced too.

Combating poverty and social exclusion

Thu, 25 Feb 2010 12:00:00 +0100

2010 has been designated the European year for combating poverty and social exclusion. We can only hope Member States will make progression in this field. This Eurostat publication presents a wide range of statistics useful for policy purposes. It can help governments to evaluate the effectiveness of their anti-poverty strategy and to readapt it on the basis of best practices abroad. Knowing and measuring are the first step, acting the second.

Evidence against carbon trading and real solutions for climate change

Thu, 25 Feb 2010 12:00:00 +0100

How effective is carbon trading as a method of reducing greenhouse gas emissions? Is it more effective than a carbon tax? In the way towards 2020 and its objectives of CO² emissions reduction, many experts do not agree about the best way to mitigate climate change. In this paper from Friends of the Earth, the author explains why carbon trading isn’t the best option. She rather urges governments to invest in green power and energy efficiency, and to introduce stronger regulations and carbon taxes.

Retire later or work harder?

Thu, 25 Feb 2010 12:00:00 +0100

The guaranty of future pensions’ payment is strongly related to the participation rate on the labour market. According to this IZA report, we will either have to work harder or work longer if we want to increase this rate. Both options influence employers’ decisions to invest in human capital, but will in the first place depend on a number of workers’ characteristics (job satisfaction, need of money, etc). The authors investigate the British labour market and present this trade-off both theoretically and empirically and its impact on labour input.

Clean Technology Research, Development and Innovation in China

Wed, 24 Feb 2010 12:00:00 +0100

Our ability to deploy effective technologies, on a scale large enough to significantly reduce greenhouse gas (GHG) emissions, depends on two key factors: the direction, and the pace, of technological innovation. The pace of technological innovation depends on a range of factors including, critically, the presence of effective domestic policies to spur research and innovation. This working paper of the World Resources Institute examines efforts made by China – the world’s largest gross emitter of greenhouse gases – to create an enabling environment for R&D and innovation in the field of clean technology.

Clear diagnosis, uncertain remedy

Wed, 24 Feb 2010 12:00:00 +0100

The private health economy is on the rise and, paradoxically, may have been encouraged by public authorities. Governments want to spur private insurance in the hope of solving three big problems bedevilling their national systems of health care: inadequate access to care; soaring costs; and a paucity of innovation. They hope thus to improve their citizens’ health without tearing more holes in tattered public finances. According to this article from The Economist, evidence so far suggests that relying on private insurance may help in some respects. But it will not solve all these problems, and may even be making some of them worse.

Crisis in the eurozone and how to deal with it

Wed, 24 Feb 2010 12:00:00 +0100

With some fearing speculative attacks on the Euro, the Greek crisis has put a lot of pressure on the monetary union. In this CEPS paper, Paul Degrauwe explains how the current financial crisis in the eurozone developed, distinguishing in turn the three main actors that have played a major role: Greece, the financial markets (including the rating agencies) and the eurozone authorities themselves. While acknowledging that a grand plan for more intense political union in the eurozone does not seem possible, professor Degrauwe further outlines smaller, but focused steps that could be taken towards such a future union.

Education quality

Wed, 24 Feb 2010 12:00:00 +0100

The public opinion has never been so concerned about the quality in schools as it is today, and yet this education quality has never been really evaluated. Jean Hindriks has decided to rectify this gap by realizing a systematic detailed evaluation of our secondary education in Belgium (within the two communities). This evaluation covers justice as well as the efficiency of our school system. This study has been executed via a random sampling of 6336 students in more than 445 different schools (within the two communities).

Public Service Reform: Capable Communities

Wed, 24 Feb 2010 12:00:00 +0100

Society has to address a range of complex problems which post-war institutions were not designed to fix: chronic health conditions related to lifestyle, ageing populations, climate change and anti-social behaviour. Citizens themselves, whether as individuals or communities, should therefore participate much more than they are currently in the delivery of public services, this IPPR-PWC paper advocates. The authors set out the case for community empowerment, before examining how this important agenda can move from the margins to the mainstream of the policy agenda.

Social security as a tool, not as a goal

Wed, 24 Feb 2010 12:00:00 +0100

Marc De Vos reflects about the necessity of a welfare state reform. We can create a breathing space by realizing that social protection can do without social security. Social protection has an economic future. Acting for this future also means acting for the future of social security. Social security can improve if we consider it as a tool and not as a goal on itself.

Social security as a tool, not as a goal

Wed, 24 Feb 2010 12:00:00 +0100

Strategic choices for social policy

Wed, 24 Feb 2010 12:00:00 +0100

The comprehensive budgetary effort that has become inevitable pushes us more than ever to make strategic choices with respect to our social policy. It’s not only about where savings ought to be made, but also about the way our economy will look like once this economic and budgetary crisis will be over. In this essay for the Centre Herman Deleeck, former Minister Frank Vandenbroucke discusses the policy strategy of the ‘new social risks’ and the strategy of the ‘social investment state’: what choices did our government make and what lessons are there to learn? The budgetary efforts to come are also widely examined and FVDB concludes by presenting some of the most important strategic choices for social policy.

Temporary vs permanent immigration employment

Wed, 24 Feb 2010 12:00:00 +0100

Migration is often viewed as an investment decision. Temporary migrants can be expected to invest less in accumulating human capital specific to the host country. Instead, they work more hours in order to accumulate savings and invest in financial capital that can be transferred back to their country of origin upon return. In this IZA paper the authors explore how temporary migrants differ from permanent migrants in their labour supply decisions and behaviour.

Obesity is first and foremost a social problem

Fri, 19 Feb 2010 12:00:00 +0100

Sometimes one hears obese people are responsible for their weight problem, this weight problem for a climate problem, and therefore obese people are responsible for a climate problem. Of course, this syllogism doesn’t make sense, as obesity is a social problem in the first place, says Brieuc Van Damme.

Obesity is first and foremost a social problem

Fri, 19 Feb 2010 12:00:00 +0100

Eurozone credibility put to the test

Tue, 16 Feb 2010 12:00:00 +0100

Eurozone credibility put to the test

Tue, 16 Feb 2010 12:00:00 +0100

The one who simply reduces the current crisis of confidence in the member states solvency to a Greek problem, understood very few things. There are risks associated to the large expansion of the eurozone which are too often dictated by political motives, let’s hope that the European leaders will notice this now. As Europe gives a signal not just to watch but to undertake appropriate action, is it important that one indicates the exact bounderies of how far and under which conditions support can be given. It is also an evidence that at present and in the future a lot of lessons will need to be drawn with regards to the eurozone.

Ageing and the Welfare State: Securing Sustainability

Mon, 15 Feb 2010 12:00:00 +0100

Over the next four decades, increasing old-age dependency ratios exert an enormous upward pressure on welfare spending in most developed countries. As this is mainly due to existing unfunded public pension schemes, many countries have embarked on far-reaching reforms in this area, strengthening actuarial fairness, modifying indexation rules, adding elements of prefunding and, last but not least, attempting to extend the period of economic activity. Efforts to contain costs may also be relevant with regard to public expenditure on health and long-term care but, thus far, no country has started to really deal with these issues. This CESIFO paper discusses all these reform options in the light of securing a sustainable welfare state.

Financing home nursing in Belgium

Mon, 15 Feb 2010 12:00:00 +0100

An ageing population will also increase the demand for home nursing. Home nursing expenses represent 4% of the public health insurance budget, and with an average growth rate of 7%, the yearly increase is about 1% higher than that of the general healthcare expenses. According to the authors of the centre of expertise, its financing should be reformed, which necessarily implies rethinking the role of the different healthcare functions. To do so, more coordination at the different policy levels will be required. Today’s mixed financing could be carried on, if optimized. The authors also advocate an actualization of the nomenclature, the integration of a quality component and a more accurate measuring of care dependency.

Our fight against poverty needs a dynamic vision and clear objectives

Mon, 15 Feb 2010 12:00:00 +0100

Belgium can and needs to do better in its fight against poverty. Therefore, we have to make a distinction between permanent and temporary poverty, and define a quantitative goal of poverty reduction.

Our fight against poverty needs a dynamic vision and clear objectives

Mon, 15 Feb 2010 12:00:00 +0100

Performance related pay in employment services

Mon, 15 Feb 2010 12:00:00 +0100

Activation policies often reward job seekers finding a job. In this study of the The Danish National Centre for Social Research, the authors advocate rewarding employees in the employment administration too. Performance related Pay (PRP), as this is called, seems to promote employment chances of social clients. Especially it seems that PRP schemes with collective monetary payoffs have a positive effect.

School autonomy : to do what with?

Fri, 12 Feb 2010 12:00:00 +0100

Education quality is a condition for having sustainable growth. To upgrade the French-speaking education system, we have to upgrade the position of the teachers. If we want the schools to be more performant, the power of the director has to increase in the context of a higher and supervised responsibility.

School autonomy : to do what with?

Fri, 12 Feb 2010 12:00:00 +0100

The inherited school success

Fri, 12 Feb 2010 12:00:00 +0100

The inherited school success

Fri, 12 Feb 2010 12:00:00 +0100

Education in Belgium is one of the most unequal in the world. School success heavily depends on pupil’s social origin. The “décret inscriptions” in the French Community and the GOK in the Flemish Community are at the center of the public debate but there is no word about the fact that pupils from low income families are more likely than others to be put into different teaching channels.

The single employment status is much more than a redundancy story

Thu, 11 Feb 2010 12:00:00 +0100

A large number of labour experts argue for a new dismissal law, that combines income protection and reemployment. The single employment status for blue collar and white collar workers needs to do more than harmonizing: it needs to modernize. That is in the interest of social justice as well as the ill Belgian labour market.

The single employment status is much more than a redundancy story

Thu, 11 Feb 2010 12:00:00 +0100

Consuming more or consuming less

Mon, 08 Feb 2010 12:00:00 +0100

Consuming more or consuming less

Mon, 08 Feb 2010 12:00:00 +0100

During the twentieth century, the global population increased by 6 billions (four times more) and the industrial production increased by a factor 40. Our energy consumption went up by a factor 16 and CO² emissions by a factor 10. In this context, it is crucial to wonder if our current consumption pattern will endanger the living standards of future generations to come. The conclusion seems to be that it is not so much our consumption level that will endanger our well-being in the long run, but rather the composition of what we consume (e.g. polluting goods versus less polluting goods)

21st century skills and competences in OECD countries

Thu, 04 Feb 2010 12:00:00 +0100

What are the 21st century skills and competences in OECD countries? In this OECD report, the authors investigate the question and make some recommendations to prepare workers to knowledge-intensive economies. Most of these skills and competences are related to knowledge management and are supported by ICT (information and communication technologies). Governments have to properly adapt their educational systems so as to be sure young people will be able to integrate such skills and competences, the authors say.

Basic principles for an ideal pension system

Thu, 04 Feb 2010 12:00:00 +0100

Will the National Conference for Pension provide the conclusions we hardly are expecting? Will it suggest the reforms our pension system really needs? After a brief presentation of our current pension system, Voka, Flanders’ Chamber of Commerce and Industry, exposes, in this report, the basic principles essentials for the viability of a system aimed at guarantying future seniors’ welfare. The combination of repartition and capitalization, the increase of the replacement ratio and a pension calculus on the basis of the career length belongs to these principles.

Clean energy research and development

Thu, 04 Feb 2010 12:00:00 +0100

It is not a secret anymore: by maintaining our energy demand and consumption, energy-related emissions of CO² risk to double in a few years and the security of energy supply will not be guaranteed anymore. This IEA report urges us to take concrete actions. By presenting 10 categories of low-carbon technologies and practices, it gives figures about our current R&D investments in this field and advises us to make such spending grow. We really need and can do better!

Labour market and investment in human capital in Europe

Thu, 04 Feb 2010 12:00:00 +0100

High levels of taxation and generous welfare state arrangements tend to decrease labour force participation, hours worked and thereby the returns on human capital investments. Low skilled and older workers are the first concerned by this phenomenon. What can we do to improve their participation rate in the labour market? This IZA report suggests to reduce labour market distortions. But it mainly recommends to reformulate activation and training policies in order to increase the utilization and the maintenance of human capital during the working life.

Poverty among immigrant and native children in rich countries

Thu, 04 Feb 2010 12:00:00 +0100

In rich countries, immigrant children are more likely to be poor than native children. But why are these poverty rates so different between countries? In this report from the Institute for Research on Poverty, the authors tend to bring an answer to this question. In their cross-country comparison, they point out the essential role social transfers are playing against poverty. Immigrant poverty is a barrier to integration but the use of these transfers does not have to discourage immigrant integration. A good combination of labour market policies and social benefits can then, according to the authors, give better results in the fight against poverty.

When will Belgium let unwillingness and incapacity behind her?

Thu, 04 Feb 2010 12:00:00 +0100

Marc De Vos makes some New Year reflections about the state of Belgium. In his view, we had a lost decade with unwillingness and incapacity. First, change will come step by step. The federal elections pulse will then really be necessary to put an end to incapacity.

When will Belgium let unwillingness and incapacity behind her?

Thu, 04 Feb 2010 12:00:00 +0100

All-inclusive case based hospital financing

Wed, 03 Feb 2010 12:00:00 +0100

Which hospital financing system can better reach the healthcare system’s objectives of performance, equity and quality? This KCE report studies an all-in case based hospital financing system and its feasibility in Belgium where the system is said partial and fragmentary. After a presentation of the structure of the Belgian hospital sector and the characteristics of its financing system, this report uses some models to analyze the consequences of such a reform on the hospital revenue structure, the relationship between hospital management and providers of healthcare, and the quality and accessibility to healthcare.

Earnings mobility and distribution of lifetime earnings in the EU

Wed, 03 Feb 2010 12:00:00 +0100

Earnings mobility is an essential concept in the fight against poverty. This IZA report studies lifetime earnings mobility and its impact on the distribution of lifetime earnings in 14 EU countries. Social security and labour market policies can influence earning mobility and allow people to improve their position in the income distribution over time. With the highest mobility in lifetime earnings and the highest mobility in terms of equalizer of long term inequality, Denmark is, with no surprise, the country from which Belgium can inspire.

How to reform the Belgian tax system to enhance economic growth?

Wed, 03 Feb 2010 12:00:00 +0100

According to this OECD report, a reform of the Belgian tax system could help our economy go out of the crisis and make it grow faster. The author suggests reducing labour taxes in order to boost labour demand and supply, and raising less distortive tax sources like consumption and owner-occupied housing taxes. As we need to encourage companies to maintain and develop their business in our country, the corporate income tax system has to be properly modernised.

How to restore financial stability?

Wed, 03 Feb 2010 12:00:00 +0100

It will take some time before economic activity and public finances return to their pre-crisis levels. At the World Economic Forum annual meeting in Davos, many government representatives, businessmen, civil society leaders and academics debated how to rethink, redesign and rebuild the global economy. Some uncertainty remains about the reform of the financial system. At the end of the day, financial stability has to be restored but not by regulation only. This publication from the Center for European Reform studies the initial macroeconomic causes of the crisis and gives some guidelines to avoid them in the future and to make the financial system more stable.

2010: After the Meltdown

Wed, 27 Jan 2010 12:00:00 +0100

The Itinera Institute is pleased to invite you to its 2010 New Year’s reception on January 27 in the National Bank, where Marc De Vos will present his new book “After the Meltdown: the future of capitalism and globalization in the Age of the Twin Crises”

Opel Antwerp marks the unbearable comeback of the economic nationalism

Mon, 25 Jan 2010 12:00:00 +0100

Opel Antwerp marks the unbearable comeback of the economic nationalism

Mon, 25 Jan 2010 12:00:00 +0100

Marc De Vos points out how Opel Antwerp’s destiny is both an economic and politic story. Politics has a big influence on multinationals’ restructuring, but Belgium had to give up in front of big countries like the US and Germany. Europe needs to put an end to the politization phenomenon and to economic nationalism as soon as possible.

The Great Paradox of future capitalism

Fri, 22 Jan 2010 12:00:00 +0100

Marc De Vos warns about the long run consequences of the anti-crisis policy on the economy and the economic growth. The real economy, more than the financial economy, risks to be drawn again in the afterpain of the Great Recession. The crisis is more important than the crisis self.

The Great Paradox of future capitalism

Fri, 22 Jan 2010 12:00:00 +0100

Another job scheme is not the best way to tackle unemployment

Thu, 21 Jan 2010 12:00:00 +0100

Another job scheme is not the best way to tackle unemployment

Thu, 21 Jan 2010 12:00:00 +0100

Marc De Vos considers the new job scheme as a step in the good direction, but warns us about its perverse effects. The related budget should have been better spent via individual career guidance.

Promoting competition in Belgium

Tue, 19 Jan 2010 12:00:00 +0100

Prices for many goods and services in Belgium are higher than in other countries, reflecting generally weak competitive pressures. The government has recently introduced several reforms to strengthen the competition policy framework. Nevertheless, to reap the full benefits of competitive markets, past reforms should be complemented with a number of further measures. This OECD report advances some of the steps to secure the necessary basis for bringing productivity growth in line with best performance.

The economic benefits of comprehensive immigration reform

Tue, 19 Jan 2010 12:00:00 +0100

Comprehensive immigration reform that legalizes currently unauthorized immigrants and creates flexible legal limits (that rise and fall with labour demand) on future immigration in the context of full labour rights would help American workers and the U.S. economy. Unlike the current enforcement-only strategy, comprehensive reform would raise the “wage floor” for the entire U.S. economy—to the benefit of both immigrant and native-born workers this Centre for American Progress publication argues. An idea definitely worth scrutinizing in Europe!

The US Health Insurance Reform Debate

Tue, 19 Jan 2010 12:00:00 +0100

Following a synopsis of the main problems that confront U.S. health care and insurance, this AEI report outlines the health care reform bills in the U.S. House and Senate, including the key provisions for expanding and regulating health insurance, and projections of the proposals’ costs, funding, and impact on the number of people with insurance. The report concludes by contrasting the reform bills with market-oriented proposals and with brief perspective on future developments. A must-read for those of you interested in the US healthcare debate!

All hands on deck for a responsible budgetary policy

Mon, 18 Jan 2010 12:00:00 +0100

The Itinera Institute already urged in September 2009 that the government had to adopt more ambitious budgetary objectives. The exhortation from the High Council of Finance to do so is a real opportunity for everyone who cares about the fight for the guaranty of the essence of our social model.

All hands on deck for a responsible budgetary policy

Mon, 18 Jan 2010 12:00:00 +0100

Education quality: what can we do?

Mon, 18 Jan 2010 12:00:00 +0100

Education quality: what can we do?

Mon, 18 Jan 2010 12:00:00 +0100

Schools do not need more money but another organization. More efficient working schools and at the same time less inequalities, It is without any doubt workable!

Innovating Indicators of the EU

Mon, 18 Jan 2010 12:00:00 +0100

With reflection on the EU 2020 in full swing, the Lisbon Council weighs into the debate with an analysis about the political economy of innovation indicators, as well as concrete recommendations on targets for the EU’s new economic blueprint. This report is an original reflection on how to measure and evaluate societal progress and make the policy process more inclusive and meaningful to a broader number of people.

Public and private pensions: Lessons from the crisis

Mon, 18 Jan 2010 12:00:00 +0100

The population of Europe is ageing and, as a result, pension systems are exposed to major difficulties. This requires measures to increase employment rates, to prolong working lives, promote qualified migration, and to curb, to some extent, income replacement rates. Private pension systems are, just like the public ones, dependent on adequate economic growth rates, as well as being equally sensitive to demographic change; what is more, unlike public systems, they are highly risk-susceptible in relation to financial markets. Therefore, the much lower-risk approach is to secure old-age pensions via public systems, this ETUI article argues.

Social security systems: Responding to the crisis

Mon, 18 Jan 2010 12:00:00 +0100

Social security systems have been negatively affected by the current financial and economic crisis. Financial portfolios have been undermined by slumping markets and negative investment performance. Increasing unemployment has reduced contribution revenues while expenditure on benefits has increased. On the basis of recent evidence, this ISSA publication argues a need for the better design and coordination of social security systems and for broad-ranging national and international collaboration to respond more effectively to the social and economic challenges posed in times of crisis, and beyond.

Developing and using European integration indicators

Mon, 11 Jan 2010 12:00:00 +0100

With the increase of immigration flows, European countries have to seriously consider the related integration issue. This paper from the Migration Policy Group suggests developing and using more appropriate European integration indicators that would measure integration in such fields as employment, education and training, and other social aspects (healthcare, pensions, etc). These indicators would push us to formulate targets, better monitor performances of integration policies and allow us to learn from best practices more easily.

EU Energy/Climate package and energy supply security in Belgium

Mon, 11 Jan 2010 12:00:00 +0100

With the EU Energy/Climate package adopted in December 2008, the EU Member States are encouraged to continue their efforts to both reduce greenhouse gas emissions and increase the sources of renewable energy. That way we could become less dependent from fossil fuels from abroad by 2020 while better guaranteeing their energy supply. In this report, the Federal Planning Bureau measures, through simulations, the budgetary, economic and environmental benefits that Belgium could get by following the EU package targets.

Impact of the financial crisis and the bail-outs on the public debt and public finances

Mon, 11 Jan 2010 12:00:00 +0100

How did the financial crisis bring the public debt at a rate not reached since 1993? How were bail-outs to the financial sector financed? This report from the Belgian Court of Audit answers these questions and reviews the strategies related to the management of the public debt and the guarantees offered to financial institutions. Given all the uncertainty surrounding these guarantees and the insecurity of reimbursement of capital injections and public credits, Belgian public finances remain at risk.

The free market needs strong rules

Wed, 06 Jan 2010 12:00:00 +0100

The financial crisis reminds us once again at the wisdom that the free market, just like a football game needs rules to be able to function in an efficient and competitive way. We come out of a period where the sophism which means that new financial instruments can reduce the risk, was at its best. The lessons of this financial catastrofe will only be learnt, if we go back to the old insight that in order to reduce the risk, the financial sector best has to keep itself to certain limits. This will only happen if we impose these limits from outside just like Adam Smith suggested more than two hundred years ago. We do not expect that the players of a football game define themselves the rules on a football field, do we?

The free market needs strong rules

Wed, 06 Jan 2010 12:00:00 +0100

An attendance bonus for teachers?

Thu, 17 Dec 2009 12:00:00 +0100

An attendance bonus for teachers?

Thu, 17 Dec 2009 12:00:00 +0100

Absenteeism from teachers is controversial and meaningful. It proves a deep malaise in the sector which disrupts the teaching organization. What can we do about this?

Fight against poverty, 2008-2009

Wed, 16 Dec 2009 12:00:00 +0100

Access to healthcare, housing and justice is not always guaranteed for poor people. This report from the Service for the fight against poverty, insecurity and social exclusion provides a valuable contribution to the political debate and policy considerations. It describes the circumstances in which poor people live, and makes recommendations aimed at improving their living conditions. Structural reforms are more than necessary but we cannot lose focus on the reimbursement of healthcare costs, water and energy supply and the payment of a rental guarantee and lawyer fees either.

Melbourne Mercer Global Pension Index

Wed, 16 Dec 2009 12:00:00 +0100

Worldwide, pension systems are organized in very different ways. Compulsory and/or voluntary, public and/or private, personal and/or workplace-based arrangements, defined benefit and/or defined contribution: cross-country comparisons of pension systems are not an easy job. In this report, the Melbourne Centre for Financial Studies presents an index, the Melbourne Mercer Global Pension Index, that compares the pension systems in eleven countries across America, Europe and Pacific Asia. The important notions of adequacy, sustainability and integrity are seriously considered in this index. That is a new approach that could help us to detect good practices abroad.

Energy Transition: fast track to a greener system?

Tue, 15 Dec 2009 12:00:00 +0100

Can we radically change the global energy system? What tools do we have available for this purpose? Which results will we achieve if we mobilise forces worldwide in order to meet the transition goals? What lessons can be learned from the most complete technological studies? Does the current policy in the western world comply with these lessons?

Energy Transition: Fast track to a greener system?

Tue, 15 Dec 2009 12:00:00 +0100

Green protectionism in the EU

Tue, 15 Dec 2009 12:00:00 +0100

In this paper, ECIPE investigates the EU’s biofuels policy. The researcher finds that biofuels policy has become an industrial policy using various measures to shelter domestic producers from foreign competition. Protectionism increases the cost of moving away from fossil fuels – but the EU is about to usher its policy farther in that direction with its Renewable Energy Directive. If it is implemented in the way that has been proposed, the EU is likely to run afoul of its obligations in the World Trade Organisation, and offset some of its efforts to reduce its CO2 emissions… .

How expensive is the welfare state?

Tue, 15 Dec 2009 12:00:00 +0100

This report first presents information on trends and composition of social expenditure across the OECD. After accounting for the impact of taxation and private benefits, social expenditure amounts to over 30% of GDP in Belgium. According to this OECD report, that is amongst the highest percentages in the world. Since 1990, growth in real social spending has outpaced real GDP growth in most OECD countries which could put unsustainable pressure on our much appreciated welfare model. Another wake-up call for structural reforms?

Luncheon Lecture: Energy Transition: Fast track towards a greener system?

Tue, 15 Dec 2009 12:00:00 +0100

On the 15th of December the Itinera Institute launches its latest book "Energietransitie : sneller naar een groener systeem?" - "Transition énergétique: plus vite vers un système plus vert?".

In this publication author Johan Albrecht analyses the transition challenge and makes concrete policy proposals.

Memento:Energy Transition: fast track to a greener system?

Tue, 15 Dec 2009 12:00:00 +0100

Pay for Quality in healthcare: an evaluation

Tue, 15 Dec 2009 12:00:00 +0100

Pay for Quality (P4Q) is the mechanism by which the remuneration of a healthcare service directly depends on the achieved results in terms of structure, processes and/or outcome indicators. Interest for P4Q is growing, in Belgium and abroad. What are the effects and side effects of P4Q programs? What are the necessary conditions to apply international P4Q models or to add P4Q components to already existing Belgian initiatives? This report of the Centre of Excellence makes a thorough evaluation of Pay for Quality programs.

Presentation :Energy Transition: Fast track to a greener system?

Tue, 15 Dec 2009 12:00:00 +0100

How to avoid Europe paying the price

Fri, 11 Dec 2009 12:00:00 +0100

The model for which the economic historian Nial Ferguson invented the term Chimerica still holds: China is financing America’s exuberant way of living. If the necessary adjustments are made through an important dollar depreciation, Europe will pay the price. Policy makers should therefore realize old doctrines will not be able to help them any longer.

How to avoid Europe paying the price

Fri, 11 Dec 2009 12:00:00 +0100

Decentralising integration policies

Tue, 08 Dec 2009 12:00:00 +0100

As cities and regions across Europe struggle to manage the integration challenges posed by immigration, a growing number of people are looking to decentralisation for answers. This Policy Network paper argues that increasing the financial and decision-making power of local authorities is a necessary precondition for formulating and implementing successful integration policies, but it is not a panacea. The paper provides a framework for thinking about decentralisation and its implications at different levels of governance taking into account the varied ideological and institutional settings which prevail across Europe.

Do better schools lead to more growth?

Tue, 08 Dec 2009 12:00:00 +0100

In many empirical growth studies education is often identified as one of the most effective investments to foster significant growth on the long term. In fact, this is no different for this IZA report. And, from a policy perspective, the shares of basic literates and high performers have independent significant effects on growth, and the estimates suggest that the high-performer effect is larger in poorer areas or countries. So don’t be a fool, and invest in schools!

Energy Transition: fast track to a greener system?

Tue, 08 Dec 2009 12:00:00 +0100

Essential Elements for the essential Copenhagen Agreement

Tue, 08 Dec 2009 12:00:00 +0100

Twenty thousand people, including about 40 heads of state, are in Copenhagen to decide how the world should respond to escalating climate change over the next half century. Copenhagen should serve as a foundation for and springboard to a new legally binding global climate agreement. Success at the Copenhagen summit is essential for our children’s children’s future. This World Resources Institute paper, identifies key elements for a successful and possible outcome in Copenhagen. These include a clear set of follow-on negotiations to complete a legally binding agreement.

Greenhouse gas emission trends and projections in Europe

Mon, 07 Dec 2009 12:00:00 +0100

Between 1990 and 2007, Belgium has decreased its greenhouse gas (GHG) emissions by 8.3%. This trend is encouraging but progress still needs to be made to reach the Kyoto targets. This report from the European Environment Agency presents an assessment of the past (1990-2007) and projected (2008-2012 and 2020) GHG emissions for European countries. It recommends continuing the EU emission trading schemes (EU ETS), and the promotion of renewable energy sources and policies targeting energy performance of buildings.

Presentation: School that offers chances

Mon, 07 Dec 2009 12:00:00 +0100

The malaise in French speaking schools is growing. Performance must go up, and the social and cultural inequalities must go down. This is essential, but also possible. And it's more than just a case of money.

Presentation: School that offers chances

Mon, 07 Dec 2009 12:00:00 +0100

Tax shifting: from labour to energy

Mon, 07 Dec 2009 12:00:00 +0100

In comparison with Scandinavian countries, Belgium taxes energy relatively less than labour. But what would happen if we implemented a tax shift aimed at increasing taxes on energy and decreasing employers’ or employees’ labour taxes proportionally? In this report, the Federal Planning Bureau makes some simulations to answer the question. Even if the effect on the GDP is expected to be neutral, such a measure generates what economists call a double dividend: employment increases on the one hand and energy consumption and CO2 emissions decrease on the other hand.

The single employment status for both blue collar and white collar workers needs to be better and more modern

Mon, 07 Dec 2009 12:00:00 +0100

The discussion about a single employment status between both blue collar and white collar workers can not be limited to a discussion about the redundancy period. We need a better dismissal regulation that promotes employability. That is the only way to manage ageing. Here is a project for a more modern dismissal regulation in line with foreign experience. When are we going to also adopt in Belgium a vision in favour of a better labour market?

The single employment status for both blue collar and white collar workers needs to be better and more modern

Mon, 07 Dec 2009 12:00:00 +0100

Luncheon Lecture: Sick funds: new roles in the long run?

Thu, 03 Dec 2009 12:00:00 +0100

François Daue explores a couple of ideas on possible new roles for the sick funds, to ensure a sustainable, accessible and affordable health system.

The presentation will be followed by a round table discussion on three critical questions: which of the challenges are the most interesting, which projects are already set in place or scheduled, and which are the keys to success and the problems to be anticipated.

Sick Funds: new roles in the long run?

Thu, 03 Dec 2009 12:00:00 +0100

Sick Funds: new roles in the long run?

Thu, 03 Dec 2009 12:00:00 +0100

François Daue explores a couple of ideas on possible new roles for the sick funds, to ensure a sustainable, accessible and affordable health system.

Technologies for managing dependency

Thu, 03 Dec 2009 12:00:00 +0100

The risk of being physically and psychologically dependant increases when people become older. With an ageing population, our societies will need to have the means to properly assist our less autonomous elders. This study from the Centre d’analyse stratégique (France) suggests developing appropriate technologies for elders and weighs their pros and cons.

Presentation: Sick funds: new roles in the long run?

Wed, 02 Dec 2009 12:00:00 +0100

What are the new challenges for sick funds for the 30 years to come? What are their strengths and weaknesses? How do we translate this into opportunities and concrete projects, and how do we initiate change? François Daue explores a couple of ideas on possible new roles for the sick funds, to ensure a sustainable, accessible and affordable health system.

Analysis of the Belgian budget 2010-2011

Tue, 01 Dec 2009 12:00:00 +0100

Because of the economic crisis, budgetary negotiations weren’t exactly a stroll in the park for our ministers. They had to take into account the budgetary impact of the economic crisis, e.g an important reduction of tax revenues and the increase of expenditures in unemployment benefits. In this report, the Belgian Court of Audit makes comments and observations about the last federal budget. We noticed, among other things, many new measures having been introduced, and a poorly fed Ageing Fund.

Children of immigrants on the labour markets of EU and OECD countries

Tue, 01 Dec 2009 12:00:00 +0100

In about half of all OECD countries, children of immigrants account for ten or more percent of young adults (20-29) in the labour market. This OECD report evaluates the labour market outcomes (educational attainment, employment and unemployment rates) of the children of immigrants on the basis of their origin and background. The gaps between children of immigrants and children of natives are particularly large in Belgium and in the Netherlands. We should really learn from experiences in other OECD countries.

Employment in Europe 2009

Tue, 01 Dec 2009 12:00:00 +0100

Since the beginning of the crisis, employment in the EU has decreased by over 4 million jobs. This European Commission report analyzes the recent developments and the dynamics of European labour markets. Are we going to manage the exit of the crisis? This report is confident about it. The move towards a low-carbon economy will indeed allow us to compensate for future job losses caused by the economic crisis. There is potential there and we could start by developing training policies for green technologies for example.

The Copenhagen Diagnosis

Tue, 01 Dec 2009 12:00:00 +0100

Every single year counts in the fight against climate change. Between 1990 and 2008, global carbon dioxide emissions from fossil fuels increased by nearly 40%. And if we keep on delaying actions, it is very likely we’ll face exceeding 2°C warming after 2030. This is one of the conclusions from this Climate Change Research Centre (CCRC) report. Three years after the first Intergovernmental Panel on Climate Change report, the CCRC gives an update on climate change, just before the Copenhagen summit in December 2009. How can we say we are poorly informed to take serious and effective measures now?

Activity sectors in Wallonia 20 years later

Mon, 30 Nov 2009 12:00:00 +0100

In 20 years time, Wallonia has progressively evolved from an industrial to a service society. She has developed big assets in logistics, food industry and building. Energy and sustainable development are considered as flourishing sectors in the region. In this report, the Forem gives us an overview of the historical evolution and future challenges in activity sectors in Wallonia.

Make very poor people more autonomous

Mon, 30 Nov 2009 12:00:00 +0100

Poverty is a complex phenomenon which both individuals and societies are responsible for. In this study, the author suggests that making very poor people more autonomous is an essential strategy in the fight against poverty. The idea is to give people the tools and means to strengthen their ability to survive and face daily socio-economics difficulties. Therefore, we have to guarantee basic material support, appropriate benefits and credits, access to social services and policies of economic activation. Social nets and a political participation are also important.

Pension schemes and pension projections 2008-2060

Mon, 30 Nov 2009 12:00:00 +0100

How much will the pensions cost in the future? For how long will our pension system be sustainable? How will growth evolve with an ageing population? In this report, the European Commission has updated the long-term economic and budgetary projections made by the 2009 Ageing Report. For every Member State of the EU-27, it gives a description of the pension systems, discusses the reforms recently achieved, and presents pension expenditure projections.

Progress in the light of the Lisbon objectives in education and training

Mon, 30 Nov 2009 12:00:00 +0100

In our knowledge-based economies, we are constantly trying to stimulate human capital through policy programs at national and European levels. In this report, the European Commission evaluates educational performance across European countries with respect to the Lisbon objectives. And apparently, Europe is getting there. Lifelong learning and student mobility are becoming a reality for more and more people. But progress still needs to be made in Belgium. The performance gap between pupils is among the largest in the EU and the average performance in mathematics is declining.

Sick Funds: new roles in the long run?

Mon, 30 Nov 2009 12:00:00 +0100

François Daue explores a couple of ideas on possible new roles for the sick funds, to ensure a sustainable, accessible and affordable health system.

Modernizing the public service during the crisis!

Fri, 27 Nov 2009 12:00:00 +0100

Modernizing the public service during the crisis!

Fri, 27 Nov 2009 12:00:00 +0100

The public service versus the demographic impact, the war of talent and the digital revolution: which actions to undertake?

2010, the immigration decennium?

Wed, 25 Nov 2009 12:00:00 +0100

The more migration data is made available, the more reality is ignored. Time to set things straight; to begin with future migration projections. According to Jan Hertogen, from NPData, real migration balance between 2007 and 2020 is 10,1% higher than official estimations. Compared to 1980-1989, migration is five times more important in 2010-2019. Now guidance for support, self organisation, integration and language skills of Belgian immigrants should increase by a factor 5 too, the sociologist says.

Activating labour market policy: lessons from abroad

Wed, 25 Nov 2009 12:00:00 +0100

An aging population and a growing number of (long term) unemployed will have social security expenses go trough the roof. An activation policy which seeks to replace obstacles to the labour market by incentives, tries to formulate an answer to this imbalance. An activating labour market policy is a set of measures whose objective is to fight unemployment, to encourage the outflow towards a job and to improve the connexion between supply and demand on the labour market. In this article from the Steunpunt WSE the authors discuss several interesting experiences from abroad.

Organisation of palliative care in Belgium

Wed, 25 Nov 2009 12:00:00 +0100

A palliative patient is a person that is in an advanced or terminal phase of a serious, progressive and life-threatening disease. But a patient’s status is currently being determined on the basis of his or her remaining life expectancy, while researchers from the Federal Knowledge centre think that the optimal criterion should be a person’s needs, because many patients would rather be looked after and pass away at home. Also, the training of healthcare professionals is essential according to the report, and the focus should be on communication skills and a multidisciplinary approach for high quality and dignified care to be achieved.

Obesity, at what price?

Tue, 24 Nov 2009 12:00:00 +0100

Obesity, at what price?

Mon, 23 Nov 2009 12:00:00 +0100

In the United States, one out of three adults is obese (BMI>30) and another third of the adult population is overweight (BMI>25). In Belgium, almost half of the adult population is either overweight or obese, compared to one out of five children. The healthcare costs for obesity are rising spectacularly. Obesity represents 10% of the American healthcare expenses or 1,6% of GDP. Budgetary obesity is more important than ageing, and until 2022 that will not change. Obesity is a difficult issue for policy makers. Given that obesity is mainly the consequence of technological developments; a policy that focuses on the food component only is doomed to fail. Experiments with local communities show that programs that intensively promote a healthy lifestyle (healthy food, a lot of physical exercise) can yield encouraging results. The cost of these campaigns could be financed by typical obesity taxes, such as a soft drink tax.

Obesity, at what price?

Mon, 23 Nov 2009 12:00:00 +0100

Are health problems systemic?

Thu, 19 Nov 2009 12:00:00 +0100

Industrialised countries face similar challenges for improving the performance of their health system. Nevertheless the nature and intensity of the reforms required are largely determined by each country’s basic social security model. This IRDES paper looks at the main differences in performance of five countries and reviews their recent reform experience, focusing on three questions: Are there systematic differences in performance of Beveridge and Bismarck-type systems? What are the key parameters of health care system which underlie these differences? Have recent reforms been effective?

Improving Resolution Options for Systemically Relevant Financial Institutions

Thu, 19 Nov 2009 12:00:00 +0100

There are critical holes in the existing regulatory framework for handling large complex financial institutions that become impaired. This uncertainty makes it difficult for regulators to know the best way to restructure a financial institution. This Squam Lake Working Group paper endorses legislation that would give authorities the necessary powers to effect an orderly resolution of large complex financial institutions. As part of this authority, every such institution should be required to create its own rapid resolution plans, which would be subject to periodic regulatory scrutiny. These “living wills” would help authorities address the difficulties that might arise in a resolution.

Institutions and structural unemployment in times of crisis

Thu, 19 Nov 2009 12:00:00 +0100

Unemployment in the OECD area is projected to rise by over 25 million from 2007 to 2010, by far the largest and the most rapid increase in the post-war period. But some countries’ labour market have been hit harder than others during the Great Recession. According to this OECD working paper, institutions (such as Employment Protection Legislation, average replacement ratio and product market regulation) influence both the extent of the initial shock and the adjustment pattern in the aftermath of a downturn. Especially stringent institutional settings seem to magnify a crisis’ effect on structural unemployment, the researchers say.

Livestock and climate change

Thu, 19 Nov 2009 12:00:00 +0100

A widely cited 2006 report by the United Nations Food and Agriculture Organization, Livestock's Long Shadow, estimates that 18 percent of annual worldwide greenhouse gas emissions are attributable to livestock. But recent analysis by the World Watch institute finds that livestock and their byproducts actually account for at least 32.6 billion tons of carbon dioxide per year, or 51 percent of annual worldwide GHG emissions. What if the key actors in climate change are cows, pigs, and chickens?

Taking care of our disabled pupils

Thu, 19 Nov 2009 12:00:00 +0100

Disabled pupils receive a lot of attention in terms of governmental policy. The costs of their education and complementary provisions, like compensations for home aid or expenses for youth care, are high and always increasing. This is due to the fact that schools and parents of disabled pupils don’t have any reason not to choose for the more expensive provisions. To what extent these high and ever increasing expenses generate real benefits for these kids, their families and therefore society remains however unknown, says this report from the Dutch planning bureau.

Towards a more effective anti-poverty policy in Belgium

Thu, 19 Nov 2009 12:00:00 +0100

With more than 100 000 permanent and temporary unemployed extra in 2009 an effective labour market policy should be flanked by an effective anti-poverty policy. According to OASeS researchers such an anti-poverty policy should be built on strong empirical fundamentals. Action plans should be monitored and evaluated yearly, all of that based on objective figures of course. An arsenal of priority indicators that will enable such an objective monitoring and evaluation are largely being developed in the report. But even if we were to follow these, and the other, policy recommendations dutifully, it’s far from certain that Belgium would meet its own millennium objectives by 2017.

Let ideas flow to counter conformist thinking

Mon, 16 Nov 2009 12:00:00 +0100

In the wake of the financial crisis, many mainstream economic taboos are being questioned. The efficient market hypothesis is one of the ideas that has to cope with the most pressure. How could the theory that financial markets are efficient be so dominantly accepted among economists? Experimentation tells us that people only dare to question the majority’s opinion or the status quo when diverging views are being defended in the public debate. If not, there is a high risk of painful truths remaining untold. In other words: for a democracy to be effective, ideas need to flow. Concretely, breaking with the efficient market hypothesis means central banks will have to get their hands dirty in order to burst remaining bubbles.

Let ideas flow to counter conformist thinking

Mon, 16 Nov 2009 12:00:00 +0100

Optimistic but worried about recent evolutions in healthcare

Thu, 05 Nov 2009 12:00:00 +0100

Optimistic but worried about recent evolutions in healthcare

Thu, 05 Nov 2009 12:00:00 +0100

The last week of October was full of interesting healthcare news: the publication of an interesting study by the National Institute for Health Insurance, alarming signals from the Plan bureau and the latest events in the healthcare soap, made in USA. François Daue discusses.

Ageing and well-being

Tue, 03 Nov 2009 12:00:00 +0100

The population ageing debate must go beyond the usual focus on pensions, health and care. The more general well-being of our elders has to be taken in consideration too. This report from the Institute for Public Policy Research (UK) investigates four areas (relationships, work, training and infrastructure) through which older people could still actively participate as long as possible in our society.

Does the welfare state make older workers unemployable?

Tue, 03 Nov 2009 12:00:00 +0100

European labour markets are more regulated than Anglo-saxon ones. But how are ‘continental’ older workers affected by labour market rigidities? Are higher wages for the elderly the main cause for relatively more dismissals among older workers compared to their younger peers? Should they therefore benefit from even more protection than they already do? This IZA discussion paper makes a comparison between a rigid and a flexible labour market (France vs the US) and discusses the pros and cons of both systems for older workers.

R&D investments and economic cycles

Tue, 03 Nov 2009 12:00:00 +0100

Are we going to reach the R&D objective of the Lisbon Strategy by 2010? How does the crisis influence R&D investments? That is the subject of this note from the French Center of strategic analysis. The authors also examine the procyclicality of R&D investments in times of recession in OECD countries. With an R&D intensity of roughly 1.5%, Belgium belongs to the group of countries whose firms’ R&D procyclicality with respect to business cycles should be limited.

Citizenship policies in the age of diversity

Mon, 02 Nov 2009 12:00:00 +0100

Citizenship is a crucial concept for integrating immigrants. European countries are giving more and more importance to diversity management through this principle. This publication explains the notion of citizenship in Europe and suggests some ways to promote it.

The index of sustainable economic welfare for Belgium

Mon, 02 Nov 2009 12:00:00 +0100

Since the signature of the Istanbul Declaration (June 2007), international and supranational organizations are steadily encouraging initiatives to measure societal progress, going beyond conventional economic indicators such as GDP per capita. In this report from the Hogeschool Gent, the author presents one of the alternative measures of economic welfare: the index of sustainable economic welfare (ISEW). When studying the ISEW evolution for Belgium, he discovers contrasting trends between the ISEW and the levels of per capita GDP. He also finds that increases in production and consumption have not always led to increases in economic welfare, especially after the year 1980.

Environment policy review

Thu, 29 Oct 2009 12:00:00 +0100

Our fight against climate change is far from ending. Even if progress has already been made over the last years –Belgium is among the EU Member States which have continuously reduced greenhouse gas emissions during the period 2004-2006, much needs to be done to reach our environmental commitments. This European Commission report gives an exhaustive overview of the efforts and the policy actions already taken all around Europe. It is good to know where we stand today, before making commitments for tomorrow (at the Copenhagen summit for example).

The welfare effects of social mobility

Thu, 29 Oct 2009 12:00:00 +0100

Are our well-being and individual life satisfaction higher in a society with important social mobility? How can our perception of fairness and income inequality influence our subjective well-being (SWB)? In this OECD paper, the authors answer these questions by analyzing for several OECD countries the SWB effects of intergenerational earnings mobility and equality in education at the societal level. This study reveals how perceptions and reality can actually interact and influence SWB.

Fiscal climate advantages in Belgium ; only for high incomes

Wed, 28 Oct 2009 12:00:00 +0100

Improvisation is central in the Belgium climate policy. Popular measures like subsidies for efficient investments and CO2 bonuses for economical cars are coupled with big advantages, mainly for high income people. A non-transparent tax reduction for these people represents an important part of the climate policy. Can the federal authorities allow such climate advantages in times of budgetary tightness?

Fiscal climate advantages in Belgium ; only for high incomes.

Wed, 28 Oct 2009 12:00:00 +0100

How to break network monopolies in the energy sector?

Wed, 28 Oct 2009 12:00:00 +0100

How to break network monopolies in the energy sector?

Wed, 28 Oct 2009 12:00:00 +0100

The agreement on the three oldest atomic power stations between the nuclear electricity sector and the government risks shutting down the electricity market for a long time. If we want to give competition a chance in this key sector we need a completely new strategy. For that to happen, our government has to be convinced that balanced competition is crucial of our energy policy though.

Forum Luncheon Lecture:Poverty Policy: Back to the drawing board

Tue, 27 Oct 2009 12:00:00 +0100

Despite the favourable social-economical, demographical en policy parameters, we haven’t booked any progress in the fight against poverty during the last 20 years. The result of the welfare state based on activation policy and an attempt to nullify the so-called “new social risks” was less successful than envisaged. At the same time, the level of protection of the “old social risks” couldn’t keep up with the overall increase in prosperity. The inequalities are growing larger, as well as the part of the social security funds that are attributed to higher social groups.

Bea Cantillon, Universiteit Antwerpen and CSB, explains why that is, and how we can turn it around

Presentation: Poverty Policy : Back to the drawing board

Tue, 27 Oct 2009 12:00:00 +0100

Presentation: Poverty policy; reaction of Magda De Meyer

Tue, 27 Oct 2009 12:00:00 +0100

A guaranteed minimum income for Europe’s elderly?

Mon, 26 Oct 2009 12:00:00 +0100

Harmonisation of social security systems is back on the agenda of European policy makers. However, the introduction of a harmonised scheme poses severe challenges. In this article, the ‘Centrum voor Sociaal Beleid’ from the University of Antwerp explores some options and difficulties associated with the implementation of a harmonised minimum income protection scheme for the elderly. Their findings confirm that it is one thing to be in favour of a harmonised scheme of minimum income protection, but another to design a realistic and politically feasible proposal.

Policy for orphan diseases and orphan drugs

Mon, 26 Oct 2009 12:00:00 +0100

Because they are so rare, orphan diseases are often neglected by the industry and the scientific, medical and political world. Nonetheless, successful programs have been built up to stimulate the development of the so called ‘orphan drugs’. Their aim is often to compensate the industry for the high risk and the potentially lower return on investment due to the small amount of patients. In this KCE study the authors compare the Belgian orphan drugs repayment system with other countries, estimate its budgetary impact and formulate policy recommendations for improvement.

Tax Credits to Prevent Layoffs and Stimulate Employment

Mon, 26 Oct 2009 12:00:00 +0100

While there is much talk about the economy potentially being in recovery, it must be noted that we still have an extraordinarily high unemployment rate. This will continue for years to come unless we act decisively to confront the issue. In this CEPR analysis the authors suggest a job sharing tax credit as an effective temporary measure. The basic point is simple: job sharing would use tax money to pay firms to shorten the typical workweek or work year, while keeping pay constant. An idea worth scrutinizing for the troubled Belgian labour market.

Executive Summary: What can Flemish schools teach French speaking schools?

Thu, 22 Oct 2009 12:00:00 +0100

If the Flemish school system performs better than the French speaking one it’s because its principals and teachers enjoy more autonomy. Both systems, however, belong to the most unequal in Europe. An explanation from Jean Hindriks, Marijn Verschelde, Glenn Rayp and Koen Schoors.

The paradox of the investment state: Why did poverty not decline?

Thu, 22 Oct 2009 12:00:00 +0100

Health IT: learn from your neighbours

Mon, 19 Oct 2009 12:00:00 +0100

Greater use of information technology (IT) in health care can help achieve many health care reform goals. Health IT can improve the effectiveness and efficiency of health care by reducing costs, improving the quality of care, and increasing access to health care services and information. Health IT also empowers individuals to better manage their own health care and enables them to communicate more easily with their health care providers. Finally, health IT increasingly serves as the foundation for medical research. However, progress in the adoption of health IT varies significantly between nations. The purpose of this ITIF report is to identify which countries are leading in the deployment of health IT and to draw lessons that might be useful for other countries.

The impact of the financial and economic crisis on Belgium

Mon, 19 Oct 2009 12:00:00 +0100

The impact of the worldwide financial and economic crisis on the economy, labour market, public finances and households is important; and Belgium makes no exception to that. Ever since, policymakers all over the world focus on how to restore confidence in the financial markets and institutions, budgetary stability, and economic growth. Moreover, the crisis intensifies structural challenges (such as ageing or sustainable public finances) that the Belgian and the other European economies have been facing for several years now. This policy synthesis from the Socio-Economic Council for Flanders summarizes the impact of the big crisis on our country.

Flexicurity : a proposal based on economic principles

Thu, 15 Oct 2009 12:00:00 +0100

Do workers receive fair compensation when losing their job? Do employers who dismiss workers contribute sufficiently for the costs transferred to society? In this publication from “Regards économiques” (UCL), the authors review the economic principles of dismissal and suggest a new employment protection legislation and unemployment insurance. In their proposal, laid off workers are properly compensated for psychological costs and encouraged to get back to work with the help of labour policies financed indirectly by the dismissing employers.

Human development report 2009

Thu, 15 Oct 2009 12:00:00 +0100

According to the United Nations Development Program, Belgium is, as the year before, the 17th most developed country in the world. This year’s issue focuses on the effects of migration on the general well-being of the host population. Today, immigration is the only way Belgium has to significantly increase its population, although important challenges like education and integration are often associated with immigration too. While advancing a series of recommendations, the UNDP has the objective to help us improving human mobility and by doing so we could even win a few places in the human development ranking.

The state of the union is unsufficient!

Tue, 13 Oct 2009 12:00:00 +0100

The Van Rompuy government did the absolute minimum where the budget is concerned.This is not enough. The government. misses long term vision and political courage to achieve structural reform.

Lessons of the Financial Crisis for the Design of National Pension Systems

Mon, 12 Oct 2009 12:00:00 +0100

Pension funds all over the world had a hard time the past 12 months. In the Netherlands, some people even feared the compulsory and complementary occupational pension benefits would not (entirely) be paid out. Based on the recent financial crisis and historical record, this CESifo working paper draws important lessons and makes substantial recommendations about the design of national pension systems.

The ‘Oosterweelverbinding’ and the missing alternative

Mon, 12 Oct 2009 12:00:00 +0100

The planned Oosterweelverbinding has, as every massive infrastructure project, caused a lot of commotion. This KULeuven working paper doesn’t plead in favour of one of the two choices that completely dominate the debate today. In stead, the authors say the focus on both options narrows the debate down. Have all alternatives to improve Antwerp’s mobility been scrutinized? Is there any way to improve the existing infrastructure? If so, is a bridge or a tunnel still necessary? In other words, do the existing projects make sense or are there better alternatives? A study that could really shake up the debate a week before the plebiscite.

Driving a digital recovery in times of crisis

Mon, 05 Oct 2009 12:00:00 +0100

In the past, one typical response to recessions would have be to increase investments in physical infrastructure, such as roads, bridges and sewer systems. However, in the new global economy, information technology (IT) is the major driver of not just economic growth, but also of improved quality of life. In this report, the Information Technology and Innovation Foundation (ITIF) reviews the benefits and opportunities of including IT investments in a fiscal stimulus package. A way for Belgium to maintain the necessary 1,5% annual productivity growth used in the forecasts of our (optimistic?) Commission on Ageing?

The WTO and Climate Change: Challenges and Options

Mon, 05 Oct 2009 12:00:00 +0100

Trade and environment intersect in many ways. Aside from the broad debate as to whether economic growth and trade adversely affect the environment, there are linkages between existing rules of the World Trade Organization (WTO) and rules established in various multilateral environmental agreements. Controlling greenhouse gas emissions promises to be a top priority for both national and international agendas, and special attention must be given to the relationship between the WTO and the emerging international regime on climate change. This Peterson Institute working paper examines the nexus of the WTO and climate change and discusses challenges and options.

What can Flemish schools teach French speaking schools?

Fri, 02 Oct 2009 12:00:00 +0100

What can Flemish schools teach French speaking schools?

Fri, 02 Oct 2009 12:00:00 +0100

Comparison of pension system yields

Tue, 29 Sep 2009 12:00:00 +0100

There is no doubt about it: we have to reform our pension system if we want to guaranty its adequacy and financial sustainability. But in which direction do we have to make it evolve? To what extend does capitalization (2d and 3d pillar) has to be promoted with respect to repartition (1st pillar)? In this HIVA publication, the authors make a comparative yield analysis of our 3 pillars – through time and space. This study provides relevant theoretical and empirical items for the pension reform debate.

Creating an effective teaching and learning environment

Tue, 29 Sep 2009 12:00:00 +0100

We live in modern knowledge-based economy and it’s no longer a secret: we have to respond to a growing demand for high-level skills. This OECD’s Teaching and Learning International Survey (TALIS) provides a comparative study of the teaching and learning methods in secondary schools in OECD countries. Our traditional models of schooling have to be adapted if we want to be better prepared to identify and develop the talents of all students.

Doing Business in 2010

Tue, 29 Sep 2009 12:00:00 +0100

For 2009-20010, Belgium is 18th in the Global Competitiveness ranking issued by the World Economic Forum: a progression of one place compared to last year! Although such information is useful for companies that have to select a place to invest, it is not enough. This annual “Doing Business” report from the World Bank and the International Finance Corporation that ranks economies based on 10 indicators of business regulation (which measures the ease of doing business) should therefore be seen as complementary. In this ranking Belgium is 22nd and lost two places compared to last year. In general, labour regulation, high tax rates and government bureaucracy appear to be the most problematic.

Economic outlook for the Euro area in 2009 and 2010

Tue, 29 Sep 2009 12:00:00 +0100

Although technically speaking the Euro area is pulling out of recession, the overall economic picture is everything but bright. According to this report from the European Forecasting Network, GDP growth will be negative in the Euro area in 2009 (-0,5%) and is only expected to recover slightly in 2010 to 0,8%. For our economies to grow at more ambitious rates, two conditions are crucial, the researchers say: first, government intervention into financial markets has to be effective for some time. Second, the fall in house prices has to subside visibly.

Motivation for training in Flanders investigated

Tue, 29 Sep 2009 12:00:00 +0100

A modern labour market cannot pass by training. This is why the Lisbon strategy aims at a training participation rate of the working population of 12,5%. With a mere 8%, Flanders is far from reaching that European objective. In this report from the Steunpunt WSE, the researchers analyze what motivates employees to take part in training programs, and what motivates employers to invest in them. This insight could increase the training participation rate in our region in order for our labour market to be more adequately equipped to face the challenges of the 21st century.

Short-term impact of pension reforms on older workers’ participation rates in the EU

Tue, 29 Sep 2009 12:00:00 +0100

In the last century, life expectancy has significantly increased in developed countries and many think that an increase of the legal age of retirement is therefore a justified measure for pension reform. In this publication of ECOFIN, the authors study the short-term impact of such a measure on male and female participation rates in Europe. They also discuss the importance of informing workers about pension arrangements.

The crisis: an opportunity for our healthcare?

Tue, 29 Sep 2009 12:00:00 +0100

In view of the difficult budgetary negotiations the debate about the healthcare expenditure growth rate is everywhere. For some, a more modest rate stands for the beginning of the end of a solidary social security; for others the status quo will condemn our welfare state to bankruptcy. Difficult to say who will be right. What we know for sure, however, is that this extraordinary budgetary crisis is an extraordinary opportunity to discuss, without taboos, about a sustainable future for our healthcare. And the controversial growth rate will certainly be part of the debate.

The crisis: an opportunity for our healthcare?

Tue, 29 Sep 2009 12:00:00 +0100

The economic benefits of collaborative climate action

Tue, 29 Sep 2009 12:00:00 +0100

The United Nations Climate Change Conference in Copenhagen is for this December. If we want proper measures to be adopted, it is about time we try to convince the more skeptical ones to act. Cutting greenhouse gas emissions is urgent but many fear the costs of tackling climate change to be too high. In this report, the Climate Group constructs a model and explains how the carbon price can be reduced, the global GDP increased and the benefits for employment improved with a global climate action. Individual efforts are good but a collective one is even better!

Budgetary priorities 2009: Let's get real!

Thu, 24 Sep 2009 12:00:00 +0100

Budetary priorities: 2009: let's get real!

Wed, 23 Sep 2009 12:00:00 +0100

In order to give the next generation a fair chance, it's time to get real.The Itinera Institute sends a clear message:let's do it right!

Budgetary priorities 2009: Let's get real!

Wed, 23 Sep 2009 12:00:00 +0100

In order to give the next generation a fair chance, it's time to get real.The Itinera Institute sends a clear message:let's do it right!

The long run needs to be reconciled with the short run

Tue, 22 Sep 2009 12:00:00 +0100

The long run needs to be reconciled with the short run

Tue, 22 Sep 2009 12:00:00 +0100

In the long run, we are all dead. This witticism from Keynes is known by almost everybody. Schumpeter, only interested in the long run, seems to be the antipode of Keynes. The question is to realize that the long run is more than a succession of short runs by surpassing it with a strategic vision.

Can student tutoring initiatives help underprivileged children?

Fri, 18 Sep 2009 12:00:00 +0100

Kids from immigrant and/or socially deprived background do not have the same opportunities at school as their autochthon peers. To compensate for this inequality, student tutoring (undergraduate and graduate students helping out immigrant and/or socially deprived children with school) is advanced as one interesting possibility. But what are the existing initiatives? Does student tutoring really offer an added value? If so, under what circumstances? How can we improve student tutoring? This publication from the King Baudoin Foundation offers subtle answers to these, and other questions.

Containing poverty in times of stimulus packages

Fri, 18 Sep 2009 12:00:00 +0100

Many were skeptical of the Keynesian inspired stimulus packages governments enacted in the aftermath of the financial crisis. The most important, and controversial, stimulus package was definitely the American Recovery and Re-Investment Act (ARRA). Today, while our economies are prudently recovering, we’re starting to see and measure their benefits. According to this publication from the Center on Budget and Policy Priorities, the ARRA had the important secondary effect of keeping 6 million Americans out of poverty in 2009. The authors analyze how – thus advancing strategies for combating poverty.

Economic effects of illegal immigrants' regularization in Belgium

Fri, 18 Sep 2009 12:00:00 +0100

Cost and benefits resulting from illegal immigrants’ regularization policies are of the same type but do not have the same magnitude as legal immigration policies. Illegal immigrants already live in our country and their regularization generally gives rise to family gathering or network effects. Which impact can regularization then have on our labour market and public finances? Is this impact lower or higher than the one caused by legal immigration? In this publication from the UCL economic review “Regards économiques”, the authors help us to understand reality better and perhaps to reconsider possible misjudgments on the subject.

Gender differences in individual income and financial dependence

Fri, 18 Sep 2009 12:00:00 +0100

Whatever their status, women have a higher rate of financial dependence than men. That is what we can learn from this DULBEA publication which studies gender inequality and poverty. For nine European countries, the authors investigate the individual vulnerability to poverty by distinguishing individual income from household income and by taking into account some personal characteristics. Improving poverty measurement seems also important to these authors and they therefore suggest four new indicators.

The Future of International Migration

Fri, 18 Sep 2009 12:00:00 +0100

It is very likely Western economies will have to attract foreign labour to deal with an ageing workforce. This OECD publication explores the social, economic and environmental forces that may combine to attract migrants of various types and backgrounds to OECD countries, as well as those that may persuade migrants to emigrate or to stay at home. This volume endeavours to cast light on a range of key questions. Which factors will be major determinants of global migration flows? Which OECD countries will look particularly attractive for migrants? Belgium better be prepared if it doesn’t want to lose the international war for talent!

10 actions to modernize our public services

Wed, 16 Sep 2009 12:00:00 +0100

Ten concrete actions to modernize our public services and succeed in the demographic revival among civil servants.

10 actions to modernize our public services

Wed, 16 Sep 2009 12:00:00 +0100

Addressing healthcare spending growth

Wed, 16 Sep 2009 12:00:00 +0100

Reducing the growth of healthcare spending is the ambition of the Obama administration. On top of the longed extended coverage and an equivalent quality of care one can say the President is very ambitious indeed. As identifying specific, feasible steps that can achieve these goals have proven to be difficult, one could wonder whether President Obama has not been too ambitious. This report from Brookings gives a hand and advances a couple of effective steps to address long-term healthcare spending growth. And although the American system is very different from ours, many of the proposed reforms should (and hopefully will) inspire Belgium’s policy-makers too.

Budgetary recovery in bad times

Wed, 16 Sep 2009 12:00:00 +0100

Budgetary recovery in bad times

Wed, 16 Sep 2009 12:00:00 +0100

Even before the crisis, we knew that the next generations would have to pay for the financing of our pensions and health care. But on top of this big challenge, we are facing a deep crisis today. Many call for a so-called “deficit-spending”. Because it seems unacceptable to charge the next generation for this also, we propose a number of alternative tracks.

Taxation trends in the European Union

Wed, 16 Sep 2009 12:00:00 +0100

How high are taxes in Europe? Are tax levels increasing or decreasing? How is the tax burden shared between labour, capital and consumption? How does Belgium compare with the other Member States? This Eurostat report analyses these and other questions.

A first attempt to measure the quality of public finances in the EU

Mon, 14 Sep 2009 12:00:00 +0100

The quality of public finances (QPF) has always been a subject of concern. Indeed, which country would not want to improve it knowing that it can help delivering public services efficiently and effectively and creating conditions conductive to economic growth? In this paper, the European Commission has developed a multi-dimensional concept evaluating the strengths and weaknesses in twelve areas of public finances linked to economic growth. This is thus an interesting way for Belgium to evaluate its QPF over the years, to compare itself with other European countries and, why not, to learn something from them.

China’s clean revolution

Mon, 14 Sep 2009 12:00:00 +0100

China is now almost certainly the largest national emitter of carbon dioxide (CO2) – although its per capita emissions are still a fraction of the USA’s and EU’s, and below the global average. Less widely acknowledged is the leading role that China is already playing in producing the technologies needed to solve the climate change challenge, think of China as the world’s largest producer and consumer of solar water heaters for example. But more can be done. This report by The Climate Group analyses the progress and potential in China’s major low carbon industries like low carbon transport, energy efficiency in industry, renewable energy and urban design and sustainable development. China might surprise the world during the UN Summit in Copenhagen this December… .

How satisfied are the Flemish with their healthcare provisions?

Mon, 14 Sep 2009 12:00:00 +0100

Traditionally, Belgian healthcare’s strengths are its quality, accessibility and availability. But how do the Flemish perceive their healthcare provisions themselves? And what factors, on the individual level (education, place of residence, age,…) as well as on the supply-side level (financing, choice, quality,…), influence that perception? This report from the research department of the Flemish government analysed it and compared the Flemish Community with the rest of the EU member states.

School-to-work transitions in the United-States and in Europe

Mon, 14 Sep 2009 12:00:00 +0100

How can temporary work influence the performance of youth on the labour market? What are the pathways to chose from to minimize the risk of unemployment? How can the government and companies help them in this sense? In this OECD report, the authors make an analysis of school-to-work transitions in Europe and the United-States. For both continents, they investigate the time needed to find a first job after completing education, the smoothness of the transition and the extent to which such an easy transition may determine future labor market success.

A VAT reduction in the horeca sector: at which price?

Wed, 09 Sep 2009 12:00:00 +0100

The cost of a VAT reduction in the horeca sector could be higher than expected and the creation of new jobs disappointing. Our budgetary situation is critical and we can not take such a decision thoughtlessly. Let us have a look at what the French experience can teach us first.

A VAT reduction in the horeca sector: at which price?

Wed, 09 Sep 2009 12:00:00 +0100

A crisis tax for banks?

Tue, 08 Sep 2009 12:00:00 +0100

A crisis tax for banks?

Tue, 08 Sep 2009 12:00:00 +0100

Banks have to contribute to the budgetary deficit that was partly due to the financial crisis. If we find a correct way to make the banks pay for the risk they impose on society, then our financial system could benefit from it.

Don’t let the gatekeepers of our healthcare system escape!

Wed, 26 Aug 2009 12:00:00 +0100

The profession of general practitioner (GP) doesn’t appeal to students anymore and we’re about to face a shortage – a serious problem. Yet, making the profession of GP more attractive is good for both our GPs and our social security budget, as the gatekeepers of our healthcare system can prevent us from paying for more expensive, but unnecessary, treatments.

Don’t let the gatekeepers of our healthcare system escape!

Wed, 26 Aug 2009 12:00:00 +0100

Assessment and innovation in education

Mon, 17 Aug 2009 12:00:00 +0100

Innovation is a key driver of economic and social progress in and needs undoubtedly to be sustained by education. Indeed, education enables people to develop their creativity, knowledge, skills and talents that are so much needed for innovation. This OECD report discusses three ways to improve educational practices and assessment processes to cultivate these key competences. Let’s go ahead towards innovative learning and teaching strategies to stimulate innovation!

Immigrant, Muslim, Female: Triple Paralysis?

Mon, 17 Aug 2009 12:00:00 +0100

Unemployment figures of Muslim women indicate not many of them are working. That does not necessarily mean Muslim women do not have employment aspirations. In fact, the key finding of this Quilliam Foundation report is that 57% of the Muslim women surveyed actually want to work. However, it still leaves 39% who do not want to find work, a significant number for whom this report tries to establish what is holding them back.

Learning to be healthier

Mon, 17 Aug 2009 12:00:00 +0100

There are a number of potential mechanisms, both direct and indirect, through which involvement in education and training may improve health outcomes. Participation in learning activities may improve health outcomes by improving employment prospects, for example. Learning may also have benefits in terms of improving attitudes to and competencies for engaging in positive health behaviours and making best use of health services. This Institute for Employment Studies report considers the evidence in relation to these, and other, potential mechanisms.

Pollution : emissions caused by transports

Mon, 17 Aug 2009 12:00:00 +0100

In 2007, road transport, train transport and inland navigation emitted 27% more greenhouse gas than in 1990 and were responsible, back then, for 20% of the total greenhouse gas emission in Belgium. In this report, the Federal Planning Bureau makes an inventory of greenhouse gas emissions and air pollution caused by transports. With a specific model, it also provides its own emission perspectives till 2030 and compares them to previsions already made by others. These figures should be interpreted as a wake-up call.

Reforming the pensions and insurance industries in light of the crisis

Mon, 17 Aug 2009 12:00:00 +0100

The financial crisis has generated large losses in the pension and insurance industries. Being in less distress than the banking sector, they can be improved nonetheless. This paper of the IMF explains the different characteristics of those sectors and their vulnerabilities to different shocks. The authors determine their risk sharing properties and the transmission channels to the rest of the financial sector and the real economy. From these points they derive relevant policy implications that take into account the differences between the sectors, and that strengthen supervision of the sectors and the channels of contagion.

The challenges for the Belgian voucher payment system for services

Mon, 17 Aug 2009 12:00:00 +0100

Vouchers have increasingly become a common mode of payment for personal services in Belgium, with a 53% increase in use during the period 2006-2007. They take part in policy to finance the demand for services and bring undeclared labor in the official labor market. But are vouchers an effective means for those goals? This article from the European Trade Union Institute investigates the drivers for the development of personal services and evaluates the payment method with vouchers. The author compares the Belgian and French systems and determines the challenges that lie ahead for both systems concerning the cost, and the quality of employment.

Video column: More emphasis on a better financing model in Belgium!

Thu, 13 Aug 2009 12:00:00 +0100

The financing model of federal Belgium is untenable. At the one hand more regional autonomy in corporate tax is desirable. At the other hand there is a need for more empowerment in the regional expense of federal grants. This is possible through a system of bonus/malus based on objective performance indicators.

Video column: More emphasis on a better financing model in Belgium!

Thu, 13 Aug 2009 12:00:00 +0100

Is obesity becoming a threat for the American economic hegemony?

Wed, 12 Aug 2009 12:00:00 +0100

Is obesity becoming a threat for the American economic hegemony?

Wed, 12 Aug 2009 12:00:00 +0100

The obesity epidemic is spreading out. The United-States has already spent 1.6% of their GDP to the healthcare bill related to the consequences of obesity. If this evolution becomes more intense, obesity could influence American geopolitical relationships in the long run.

The financial crisis requires more international politics

Mon, 10 Aug 2009 12:00:00 +0100

Marc De Vos shares the collective rage with respect to the outrageous bonuses in investment banks. But he points out the political responsibility. In times of crisis, political choices reinforced the position of big investment banks. Not only is the casino still open, on top of that, the same players are still at the gaming tables with more opportunities to play than before and more chances to win. Without any international consensus over new rules of the game, we may slide off to “business as usual”.

The financial crisis requires more international politics

Mon, 10 Aug 2009 12:00:00 +0100

Video column: A more performant educational system striving for excellence and equal opportunities!

Thu, 06 Aug 2009 12:00:00 +0100

Video column: A more performant educational system striving for excellence and equal opportunities!

Thu, 06 Aug 2009 12:00:00 +0100

Our educational system has to perform better in the development of our only natural raw material being human capital. More autonomy for schools and universities is therefore an important leverage. A lot of justified attention is going to equal opportunities in education. However, equal chances do not mean equal results. On all levels in education there must come more space for excellence. The potential of the highly gifted and of girls stays too often wasted.

To promote financial stability wisely

Wed, 05 Aug 2009 12:00:00 +0100

In the United States, they have to decide who will become the new governor of the Federal Reserve. Instead of focusing on the mental state of an individual and his attitude towards inflation, it would be better to build in structural mechanisms. So for example is stated in the contract of the central banker of New-Zealand, that he can be dismissed from the moment the control on inflation is lost. The issue of inflation-linked bonds by the public authorities could also be an efficient instrument. These are state bonds with interest payments depending on the inflation rate evolution. This demonstrates that public authorities are not going to choose the « nuclear » option to diminish their debt position by creating inflation.

To promote financial stability wisely

Wed, 05 Aug 2009 12:00:00 +0100

Video column: Administration should encourage entrepreneurship, and not dampen it

Thu, 30 Jul 2009 12:00:00 +0100

Video Column: Administration should encourage entrepreneurship, not dampen it

Thu, 30 Jul 2009 12:00:00 +0100

For several years now there have been attempts to measure de administrative burden for entrepreneurs. The results are very disappointing and so far there is little or no proof that these charges are going down. This is a pity, especially because measures to alleviate administrative burden won't cost government a cent.

Belgian healthcare needs an American revolution

Mon, 27 Jul 2009 12:00:00 +0100

Marc De Vos explains how American and Belgian healthcare have the same characteristics and challenges in common. Belgium can learn from the reform debate in the US. We are in a denial state about the necessity for another healthcare. Here also, healthcare effectiveness, efficiency and quality have to be a central concern.

Belgian healthcare needs an American revolution

Mon, 27 Jul 2009 12:00:00 +0100

Ageing can benefit to all ages

Fri, 24 Jul 2009 12:00:00 +0100

More of us are living longer than before. Ageing should, therefore, also be seen as one the biggest success stories of our Age. We cannot but recognise, however, that changes will fundamentally reshape our families and communities so our society must adapt to make the most of this new reality. Improving the quality of current older people’s lives will become a government priority as older people will gain weight in the electorate. In this report, the British Government sets out its long-term vision for everybody to enjoy the opportunities of an ageing society. Maybe, this will inspire Belgium’s politicians.

Intergenerational social mobility in OECD countries

Fri, 24 Jul 2009 12:00:00 +0100

The notion of intergenerational mobility can not be excluded from the poverty debate. If we want to fight poverty, we have to raise the probability that a child born in a poor family will not live, once he/she will have reached adulthood, in the same socio-economic conditions as his/her parents. This OECD report, which gives comparative estimates of social mobility in 14 OECD countries, constitutes a real added-value for Belgium: by providing relevant figures and studying the potential impact of some public policies, this report can help our country to better construct its anti-poverty strategy.

Key data on education in Europe 2009

Fri, 24 Jul 2009 12:00:00 +0100

There is always something Belgium can learn from its European neighbours, and why not in the field of education. This report from Eurydice provides a comparative evaluation of the organisation and functioning of education systems in Europe for 2009. Although the participation rate and the number of years spent in schools and universities are increasing, the number of teachers is not. Even more surprisingly so as a majority will retire in the next few years. A serious concern, especially for a knowledge based economy in which education and training needs to be promoted.

The situation of our public finances

Fri, 24 Jul 2009 12:00:00 +0100

More than ever the financial situation of our kingdom is in the spotlight. At the beginning of the decennium everything seemed fine, with balanced budgets and even the Silver fund. Today, we know better. We’re not talking about budget surpluses anymore, but about containing budget deficits. Yet, everybody knows what’s coming to us, and there’s no such thing as a magic spell to change it. In this article, Koen Algoed from the think-tank VIVES draws the situation of our public finances, and discusses a couple of efficient and fair measures to readjust the situation.

Belgium’s environmental industry: 1995-2005

Fri, 17 Jul 2009 12:00:00 +0100

This working paper from the Federal Plan Bureau studies the evolution of the size, composition and economic performance of the environmental industry between 1995 and 2005 in Belgium. The sector is part of the green economy and is mainly centred on activities increasing natural resource efficiency. Those who expect a lot from the job potential of the green economy can partly be reassured: in the environmental industry alone, the number of jobs increased by 40% in the last ten years.

The government’s role in the financial crisis

Fri, 17 Jul 2009 12:00:00 +0100

The financial crisis has necessitated intervention from the governments and questions the stability of the financial sector. This OECD report concentrates on reforms in the financial sector and the principles for the exit strategy of the emergency measures of the government. Guidelines for reforms are proposed which aim at bringing a balance between risk and the search for return in banking. The reasons why the exit strategy must be coordinated with the reforms in the financial sector are also explained. Interesting guidelines therefore for steering the Belgian policy.

Why We Must Ration Health Care

Fri, 17 Jul 2009 12:00:00 +0100

How much would you be willing to pay to live longer? Probably a lot. Now, how much would you want your insurer to pay for a drug or treatment that adds a year to someone’s life? Probably much less. Implicitly, we’re applying monetary considerations to saving lives, but is it immoral to do so? According to the controversial Australian philosopher Peter Singer, it is not, as health care is a scarce resource, and all scarce resources are rationed in one way or another. This is a must-read article!

Workers and poverty risk in Flanders

Fri, 17 Jul 2009 12:00:00 +0100

Being employed does not always preserve from the risk of poverty. Who are the poor workers in Flanders and what are their living conditions? This publication from the Centrum voor Sociaal Beleid answers these questions and investigates possible policies that could solve the problem of the working poor. If we want to do so without worsening the unemployment trap, we cannot ignore increasing the minimum wage, the authors argue.

Young people on stage

Fri, 17 Jul 2009 12:00:00 +0100

In order to take advantage from the crisis, Jean Hindriks suggests a Sweden knowledge lift. Active workers could go back to study, while receiving benefits, to let their job to younger workers, the first victims of the crisis.

Young people on stage

Fri, 17 Jul 2009 12:00:00 +0100

Budget deficits

Thu, 16 Jul 2009 12:00:00 +0100

Budget deficits

Thu, 16 Jul 2009 12:00:00 +0100

Among al the regional agreements, the Flemish one sadly stands alone when it comes to numerically clarifying the way politicians are going to manage public money. Imposing the improvement of the annual productivity of all public services and having public servants deciding by themselves how to reach these objectives definitely is a practice to recommend. And it goes without saying that this method has already been successfully tested abroad. The Itinera axes for modern and better public authorities are already a first step towards a culture of evaluation, which enables public performance to be improved by objectively evaluating the impact, the quality and the efficiency of public actions and to inform citizens about quality and results. Results, more than necessities, should determine budget allocations. .

Global imbalances and the financial crisis

Tue, 14 Jul 2009 12:00:00 +0100

Among the origins of the financial crisis, the global imbalances – cheap money from countries like India and China being channelled to the US – are often mentioned. These surpluses in savings could not but lead to investment excesses. Because most of the investment destinations were quickly supersaturated (think about the commodity bubbles), subprimes became an ideal solution. If the banking system had been sufficiently robust, that is without excessive leverages, the global imbalances might have led to a recession, but not to a systemic crisis.

Global imbalances and the financial crisis

Tue, 14 Jul 2009 12:00:00 +0100

How open is the Belgian economy?

Tue, 14 Jul 2009 12:00:00 +0100

Belgium occupies a mediocre 21st spot in an international ranking of the most open economies. There seem to be many obstacles left for firms willing to invest in Belgium, especially for foreign firms, the latest World Economic Forum report says. The most open economies are often Nordic countries. The reason we perform rather poorly to European standards is due to a less accessible market – blame the not very favourable investment climate and the archaic functioning of our customs.

Labour migration in times of recession

Tue, 14 Jul 2009 12:00:00 +0100

An economic recession makes a country less attractive to migrate to. Given the widespread nature of the current downturn there are fewer honey pots to attract mobile people from one country to another. Also, many people seize the opportunity of a recession to return home. This paper from the Policy Network investigates what the net immigration effects will be for Europe and the UK considering today’s gloomy economic outlook. The problem’s complexity makes forward planning to respond to population movement very difficult. This is unfortunate, the authors conclude, as immigrant labour can play a significant role in an economy’s revival.

Reform of the labor market policy in Belgium

Tue, 14 Jul 2009 12:00:00 +0100

What does the ideal labor market policy look like? This paper of the CESifo proposes a reform of the labor market in Belgium, based on economic principles. The authors sum up the pitfalls of the current system and argue for the implementation of a new layoff tax. The guidelines that are provided for a new reform indicate that the current policy lies far from the ideal.

The effect of age on productivity investigated

Tue, 14 Jul 2009 12:00:00 +0100

As employees become older they become more experienced, yet their health and strength declines as well. The general presumption is that aging implies a decline in productivity, but does that hold true? In this paper of the Institute for the Study of Labor (IZA) data is examined from running contests, output of publications and firms. The author finds differences in the effect of aging on mental and physical productivity which might differ with your expectations.

Budgetary perspectives of Wallonia: 2009-2019

Wed, 08 Jul 2009 12:00:00 +0100

In full negotiations for Wallonia’s political program to come, the CERPE (FUNDP) publishes a new report on Wallonia’s budgetary perspectives for 2009-2019. It revises the 2009 initial budget set by the Plan Bureau, by using the revised inflation and growth expectations. Thanks to these new figures we’re able to evaluate the weight of regional revenues and expenditures in the total regional budget. Given the gloomy economical circumstances, to which extend will politicians be able to realize their electoral promises?

Does Flanders need additional stimulus measures?

Wed, 08 Jul 2009 12:00:00 +0100

On-the-job training is seen as an important driving force for a knowledge-based economy with a dynamic labor market. Should the government stimulate investments in on-the-job training? And is there need for new stimulus measures in Flanders? This report of the ‘Steunpunt Werk en Sociale Economie’ explains the motives for government intervention and the different implementation possibilities. The author provides pros and cons for new stimulus measures in Flanders and draws conclusions which can direct the debate on government policy.

How to avoid a pension crisis with a new system design

Wed, 08 Jul 2009 12:00:00 +0100

Pension reforms seem unavoidable if we want to guaranty a relatively equivalent purchasing power to the next generations of pensioners. In this IZA publication, the authors suggest to reconsider the pension system design in itself by combining a Bismarckian scheme with an unconventional one linked to individual investments in one’s children education. They also give strong arguments and evidence defending the idea that, with such a system, fertility, education, labour productivity and work incentives can, all at the same time, only be stimulated positively.

Lessons from migration after the EU enlargement

Wed, 08 Jul 2009 12:00:00 +0100

After the EU enlargement in 2004, many feared large migration flows from new to the old member states. The potential increase in competition on the labour market and for welfare benefits seemed particularly dreadful. That is why Belgium and other old EU member states decided to restrict access to labour markets, before lifting these restrictions gradually. In this publication from IZA, the authors study the evolution of East European workers’ migration, its causes and effects in the new member states. The interested reader will also find some considerations about the crisis’ impact on these migration flows.

Education and obesity

Mon, 06 Jul 2009 12:00:00 +0100

An epidemic of obesity has been developing in virtually all OECD countries over the last 30 years. Research suggests that such epidemic has affected certain social groups more than others. In particular, education appears to be associated with a lower likelihood of obesity. This OECD working paper finds linear relationship between the number of years spent in full-time education and the probability of obesity. Moreover, the researchers were able to ascertain that the direction of causality appears to run mostly from education to obesity. Will education and information proven to be the solution for one of our most important health challenges?

Electronic prescriptions, in Belgium soon

Mon, 06 Jul 2009 12:00:00 +0100

There’s some good news from the healthcare sector: a pilot project for electronic prescriptions is on its way. Electronic prescriptions offer more security to the patient, improve the quality of care and push down costs. François Daue and Brieuc Van Damme hope this project will be as successful as in Sweden where net benefits are estimated to reach 97 million euros annually.

Electronic prescriptions, in Belgium soon

Mon, 06 Jul 2009 12:00:00 +0100

Evaluation of the federal climate policy

Mon, 06 Jul 2009 12:00:00 +0100

In order to fulfill its climate policy targets, Belgium should reduce carbon emissions by 7.5% in the period 2008-2012. The federal government aims to achieve this through emission reduction and the purchase of emission certificates, respectively at 4.8 and 2.44 million tons on average per year. The Court of Audit concludes in this report that a decent federal climate plan is missing and that there is insufficient coordination between the appointed governments. In their recommendations they demand that the federal climate plan has to be elaborated with distinct descriptions of the measures, well informed targets and cost predictions of emission reduction.

The European patent system and why it doesn’t work

Mon, 06 Jul 2009 12:00:00 +0100

Research has shown the importance of intellectual property rights and institutions to trigger innovation, and thus growth. The way patent requests are being processed on a national and international level is a part of that institutional framework, and is today facing two major challenges: 1) the work of the European Patent Office is currently being undermined by the high degree of patent fragmentation in Europe; and 2) backlogs at patent offices worldwide create more uncertainty on the markets. In this Bruegel report, recommendations are advanced to solve the European internal fragmentation challenge and the global backlog challenge.

The headscarf debate illustrates the multicultural dream failure

Fri, 03 Jul 2009 12:00:00 +0100

Marc De Vos signals that the discussion over the headscarf prohibition in Antwerp passes over the essence, that is to say, the fact that Muslim women testify an isolated conservatism and social choices must be made. We need a conscious and leading culture to create unity within diversity.

The headscarf debate illustrates the multicultural dream failure

Fri, 03 Jul 2009 12:00:00 +0100

Who controls public contracts?

Thu, 02 Jul 2009 12:00:00 +0100

Who controls public contracts?

Thu, 02 Jul 2009 12:00:00 +0100

According to a survey from Transparency International Belgium, a majority of the candidates for the last regional elections consider that subsidies and public contracts in Belgium are still being attributed with a lack of transparency. 30.4% of the Brussels candidates, 35.5% of the Walloon candidates and 59.9% of the Flemish candidates have doubts about the public contracts procedure and its ability to guarantee transparency and equal treatment among competitors.

Poverty and social mobility: what do we have to know to act better?

Mon, 29 Jun 2009 12:00:00 +0100

With a poverty rate of 15.2% in 2007, Belgium should consider its fight against poverty and social inequality more seriously than it does now. According to Johan Albrecht and Isabelle Martin, it needs to evaluate more regularly and more rigorously the effects of its anti-poverty policies in order to have a better idea of their real efficiency. Belgium also needs to pay more attention to improving intergenerational mobility by properly using social levers such as education and employment policies.

Poverty and social mobility: what do we have to know to act better?

Mon, 29 Jun 2009 12:00:00 +0100

Activation policies in some European countries