Czech Republic : 2016 / OECD.

Format:

Book

Contributor:

Organisation for Economic Co-operation and Development, contributor.

Series:

OECD Economic surveys (Series)

OECD Economic Surveys

Language:

English

Subjects (All):

Economic history.

Czech Republic--Economic conditions.

Czech Republic.

Czech Republic--Economic policy.

Physical Description:

1 online resource (132 pages).

Edition:

2016th ed.

Place of Publication:

Paris : OECD Publishing, [2016]

Summary:

Special Features: Fostering productivity for sustainable convergence; Public sector effectiveness.

Contents:

Intro

Table of contents

Basic statistics of Czech Republic, 2015

Executive summary

Growth has picked up temporarily

Real GDP growth

Strengthening innovation policies and market regulations to bolster productivity

Convergence in labour productivity has stalled

Improving the effectiveness of the public sector

Public administration performance indicator

Assessment and recommendations

Turning to long-term challenges while the economy is growing

Key challenges for stronger and inclusive growth

Figure 1. Growth has picked up

Figure 2. Measures of well-being

Table 1. Indicators of well-being relative to other OECD countries

Figure 3. Inequality and poverty are relatively low but vary across regions

Figure 4. Labour productivity has disappointed since the crisis1

The economic outlook is positive

Table 2. Macroeconomic indicators and projections

Figure 5. Czech economic developments

Table 3. Potential vulnerabilities of the Czech economy

Monetary policy

Figure 6. Foreign exchange market and inflation

Figure 7. Indicators of potential macro-financial vulnerabilities

Fiscal sustainability

Table 4. Fiscal indicators

Table 5. Key features of the proposed fiscal framework

Figure 8. Debt dynamics taking into account macroeconomic shocks

Figure 9. Use of electronic tax filing is low

Figure 10. VAT revenue loss due to tax avoidance and evasion is above the EU average

Structural challenges

Progress on structural reform recommendations from previous Surveys

Future pension adequacy may pose a challenge for public finances

Figure 11. The impact of ageing on public finances

Figure 12. The benefit ratio is declining over time

Improve inclusiveness through a gender balance agenda and better integration of minorities.

Figure 13. Gender gaps in the labour market are large

Figure 14. Challenges for social inclusion

Greener growth through more co-ordinated and cost-effective policies

Figure 15. Reducing air pollution is important for the environment and Czechs' health

Fostering productivity for better living standards

Figure 16. Stalled convergence of the Czech Republic

Figure 17. Weak output is the main drag on productivity at the aggregate level

Figure 18. The labour productivity shortfall in the Czech Republic is mainly structural

Strengthening R&D and innovation policies to foster productivity

Figure 19. Business R&D intensity

Framework conditions are key for productivity

Figure 20. Reducing the extent of skill mismatch would increase labour productivity

Figure 21. The cost of bankruptcy proceedings is high

Figure 22. Self-employment is high

Enhancing the effectiveness of the public sector

Figure 23. Expenditure and performance for public administration are low

Increasing the effectiveness of the public administration

Reducing wastage and increasing value from public procurement and investment

Figure 24. Public investment has been volatile and lacking in some areas

Realising the benefits of decentralisation

Figure 25. Czech municipalities and regions are among the smallest in the OECD

Figure 26. Educational attainment is consistently good but the system could be organised more efficiently

Bibliography

Annex. Progress in structural reform

A. Strengthening the fiscal framework and fiscal sustainability

B. Promoting competition and improving the business environment

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

D. Improving health spending efficiency

E. Making the tax structure more growth and employment friendly.

F. Achieving efficiency in the energy system

Chapter 1. Fostering productivity for income convergence

Introduction

Figure 1.1. GDP per capita

Figure 1.2. Decomposition of GDP growth

The productivity growth rate slowdown is structural

Labour productivity and total factor productivity growth rates have declined

Figure 1.3. Labour productivity has disappointed since the crisis1

Figure 1.4. The labour productivity shortfall is mainly structural

Contribution of sectoral productivity to total productivity is slowing down

Figure 1.5. Labour productivity by main activity

Investment and capital accumulation growth have receded

Figure 1.6. Capital accumulation has been undermined by the crisis

Leveraging R&D and innovation policies to foster productivity

The R&D and innovation performance are not yet satisfactory

Figure 1.7. Research and development expenditure by sector

Figure 1.8. Business R&D intensity

Figure 1.9. Innovation performance is moderate

Figure 1.10. Innovation is moderate in manufacturing and services sectors

Figure 1.11. Innovation results are not in line with spending: illustration from the ICT sector

Increase and better target R&D and innovation funding

Box 1.1. Technology Agency of the Czech Republic

Streamline the administration and implementation of innovation policy

Box 1.2. Czech innovation policies and bodies: a complex organisational structure

Upgrading the innovation system will increase productivity and competitiveness

Figure 1.12. Share of higher education R&D financed by industry

Figure 1.13. Externally developed goods and services used in innovation

Appropriate framework conditions are needed to increase productivity

Removing obstacles for firm expansion and start-up creation will boost productivity.

Figure 1.14. Labour productivity of small firms is low

Improving the management quality of Czech firms

Figure 1.15. Indicators of management quality and practices

Figure 1.16. There is a large difference in managerial quality by firm size

Table 1.1. Management outcomes by ownership and sector

Skill mismatch is high and likely affecting productivity

Figure 1.17. A relatively high share of Czech workers are over-skilled

Box 1.3. Skill mismatch and worker characteristics

Table 1.2. Overskilling and worker characteristics

Figure 1.18. Estimated labour productivity gains from moving policy-related factors to best practice

Raising competition and resource re-allocation to boost productivity

Figure 1.19. The cost of bankruptcy proceedings is high

Figure 1.20. Consumer market scoreboard: Czech Republic versus EU average

Figure 1.21. Barriers to entrepreneurship, 2013

Box 1.4. The Czech-Moravian Guarantee and Development Bank

Box 1.5. SME financing programmes

Figure 1.22. Business loan growth of financial institutions

Leveraging the high participation in global value chains to increase productivity

Figure 1.23. Participation in global value chains is high

Figure 1.24. Intermediate inputs in key manufacturing sectors

Figure 1.25. Services outsourcing and labour productivity growth in the manufacturing sector

Recommendations to foster productivity growth and income convergence

Chapter 2. Enhancing public sector efficiency and effectiveness

Enhancing the effectiveness of public spending

Figure 2.1. Comparing the efficiency of public administration across OECD countries

Box 2.1. Strategic Framework of the Development of Public Administration for 2014-20

Table 2.1. Summary of objectives

Using public procurement for efficient provision of public services.

Figure 2.2. Public procurement spending by level of government

Figure 2.3. Indicators of competition in public procurement

Table 2.2. Comparing procurement across types of government

Maximising the impact of public investment spending through better planning and implementation

Figure 2.4. Infrastructure investment has fallen and is still needed in some areas

Figure 2.5. Government investment has been volatile and procyclical

Figure 2.6. Size and absorption of the 2007-13 programme of EU structural funds

Box 2.2. OECD recommendations for effective public investment across levels of government

Table 2.3. Key principles for effective investment

Better management of human resources

Figure 2.7. Gaps in human resource practices were affecting the civil service

Box 2.3. The new Civil Service Act

Focussing on performance to evaluate and reinforce improved processes

Figure 2.8. There are gaps in the usage and availability of some e-government services

Box 2.4. E-Government tools in the Czech Republic

Figure 2.9. Sub-national government spending is concentrated in a few functions

Table 2.4. Scope for sub-national discretion and autonomy

The current territorial division is fragmented and complicated

Figure 2.10. Czech municipalities and regions are among the smallest in the OECD

Figure 2.11. Czech cities are among the most territorially fragmented in the OECD

Table 2.5. Distribution of municipalities by key functions performed

Box 2.5. Voluntary associations of municipalities (VAMs)

Better matching size and function to overcome fragmentation

Figure 2.12. Relationship between cost of public services and municipality size

Figure 2.13. Educational attainment is consistently good but the system could be organised more efficiently.

Box 2.6. Other OECD countries' experiences in overcoming territorial fragmentation.

Notes:

Description based on print version record.

ISBN:

92-64-25722-5

OCLC:

1024280821