TNAG-2056-FCO40-2934-Hong-Kong-and-the-Organisation-for-Economic-Cooperation-and--1990 — Page 43

1990-09-10 17:20

TUK

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

I countries into the world economy mean that their producers will face new

challenges in the form of competitive pressures from both OECD countries and I the DAES. Conversely, the ongoing restructuring and the opening up of Central and Eastern Europe offer new opportunities for producers from this region to I penetrate foreign markets.

|

35.

Another major issue concerns the consequences of this integration I process for the international (re) allocation of savings. This key issue

I involves an assessment about the likely scale of resources transfers to

Central and Eastern Europe, the extent to which this involves a redirection of

| financial flows previously destined for other regions, the nature of these

I resource flows, and the possible impact on world interest rates.

c) Assessing and Synthesising the Results of the Informal Dialogue

36.

In order to assess and synthesise the results of sectoral activities. a further informal seminar could be envisaged.

111. MANAGEMENT

A.

37.

The Role of Representatives of Member Countries

Regular overview of activities and monitoring of the progress of OECD co operation with the DAES is a clear necessity. The Group of the Council on non-Member Economies constitutes an appropriate framework for these tasks. On the other hand, given the similarities in the role played by markets in these economies and those of the OECD area, substantive (as opposed to political and institutional) aspects would increasingly be addressed by the specialised bodies of the Organisation and integrated in the regular work programme cycle.

B.

38.

Strengthening the "Substantive Directorates" in the Secretariat

The Secretariat must acquire a fuller understanding of the DAES That would entail the establishment within the Economics and Statistics Department of a unit comparable to those dealing with country studies, in order to assume a basic function of analysis of the DAES. There is a large volume of work to be done to improve the Department's capacity to monitor and analyse developments in the DAES. Three principal activities can be identified: (i) further improving and regularising access to economic data relating to these economies: (ii) enhancing capacity to analyse the DAES and to monitor economic and policy developments: and (iii) enhancing capacity to analyse interlinkages in the context of the Organisation's global econometric model. This work is necessary not only to enable the Secretariat to organise discussions with representatives of these economies, but also to prepare information notes and assessments for the Economic Policy Committee, and possibly other bodies of the Organisation. More generally, the work would serve as background to all other activities concerning these economies.

39.

A fuller understanding of the DAES would also entail, at this stage, a small increase in the resources of the Trade Directorate, DAFFE and DST' in order to improve the Organisation's expertise in this area. Similar increases would be expected, at a later stage, in other Directorates in line with the evolution of the work programme

CONFIDENTIAL