TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 42

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C/NM(90)22 (1st Revision)

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30.

Issues to be taken up would include:

The different ways in which the changing structure and behaviour of firms and the organisation of work (against the background of technological and structural change) are affecting skills and qualifications requirements:

The stocks and flows of qualified labour, how well they are

adapted

to changing qualifications requirements, and the effect of recent and current policies on the patterns of stocks and flows;

The relationship between public policies and the behaviour of individuals and enterprises (with respect to initial education and training, as well as further education and training) in achieving the needed changes in stocks and flows.

31. The Informal Workshop would be supported by the significant work which has already been done within OECD in this area, particularly on technological change and human resource development and on further education and training of the labour force. It would be essential, however, to prepare parallel contributions, reflecting the DAEs experience.

1 32.

Impact on the DAES of the Integration of Central and Eastern Europe in the Global Market Economy

An important characteristic of Central and Eastern European countries is their relatively low degree of integration into the global market economy. | The trade relations of this region are dominated by intra CMEA trade flows.

Recently, most governments in Central and Eastern Europe have adopted or

I proposed radical programmes for the transition to a market economy. Moreover,

it seems likely that, starting in 1991, a new CMEA regime based largely on I world pricing and convertible-currency settlement will go into effect. The 1 purpose of the informal meeting is to explore the possible impact of these

I developments on the DAES. In addition to participants from OECD countries and

I DAES, participants from the IMF, the World Bank and the Asian Development Bank I will be invited.

1 33. It is very difficult at this stage to assess with great precision the I consequences of these developments on the future economic relations of Central 1 and Eastern European countries with countries outside the CMEA region. In I particular, the balance of considerations with regard to the extent to which 1 intra-CMEA trade will contract in favour of trade with countries outside the I region is difficult to draw. Structural considerations, in particular the

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I relative immobility and inflexibility of productive factors tied up in

intra-CMEA trade related production, argue for maintaining intra-CMEA trade in I the process of transition toward a market economy. On the other hand, the I more advanced and efficient technology and higher quality goods available on I world markets argue for greater reliance on imports from OECD countries and ! DAES and a corresponding re-orientation of exports to these markets.

134.

It is likely that in the near future most Central and Eastern European I countries will sign trade and economic co-operation pacts with the European

| Community, allowing these countries lower EC tariffs and in return increasing

| EC access to Central and Eastern European markets. This and other

i developments towards fuller integration of the central and eastern European

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