In its report, the OECD presents proposals for “structural reforms” in form of checklists. It is the objective of the report to promote economic growth. The already crisis-torn states Spain, Portugal and Greece are urged to further soften collective agreements or to cut back unemployment benefits. But also states, which are comparatively well off, such as Austria, are called upon to raise the pension age, to introduce university fees or to lower social security contributions. Overall, the report demands a shift from taxing profits and wages to indirect taxes, which, as is a well-known fact, hit people on the lowest income the hardest.

The proposals for these structural reforms, which in the end mean nothing but financial losses and a change to the worse in respect of legal issues for employees, show that the ideology of neoliberalism is still very powerful. It is therefore more than questionable how this policy, which has been aggravating the crisis for years, can serve the objective of the report. However, that not everybody in the OECD shares the same opinion, has been proven by the “Initiative on Inclusive Growth”, which urges politicians to gear their policies towards combatting income inequalities within the scope of a growth strategy.

The OECD has to decide, which targets it wants to pursue; cutting back labour and social rights whilst at the same time promoting inclusive growth - this is a contradiction in itself.

Further information:

Going for Growth

Inclusive Growth