This paper is based on the report of the OECD (2015) and will highlight the economic sectors, which have to be improved to increase an economic efficiency of the UK. I will introduce several policies and reforms, which according to the OECD, have to be incorporated to improve an economic growth. First of all, I’m going to stress the infrastructure of the UK. In this paragraph, I will concentrate on the main issues, which are associated with the roads, railways, airports, ports, the environment and possible solutions for the government. Furthermore, I will mention that the level of demand for the houses in the UK is higher than supply and the number of households has to be increased. In addition, I will emphasise the finance and policies, which have to be introduced to ensure the stability in this sector. Moreover, I’m going to stress the policies such as control of the incomers associated with migration. Furthermore I will stress that the improvement into educational system have to be incorporated in order to increase labour productivity in the future.
Table of Contents
II. Executive summary
III. Introduction
IV. Infrastructure
a) Road and railway
b) Airports and ports
c) Greening the infrastructure
V. Households
VI. Finance
VII. Employment and migration
VIII. Conclusion
Objectives and Topics
This paper examines the economic efficiency of the United Kingdom based on OECD (2015) data, aiming to identify key policy reforms necessary to foster sustainable economic growth and recovery in the post-crisis era.
- Infrastructure development and modernization strategies.
- Housing market challenges and property policy reforms.
- Fiscal management and tax system improvements.
- Labor market dynamics, migration, and educational strategies.
Excerpt from the Book
IV. Infrastructure
The condition of the infrastructure in the UK is similar to the average OECD. However, the Britain is falling behind the economic leading countries such as United States, Canada, France and Switzerland, what means that infrastructure needs various reforms in order to improve the prosperity of the country. The graphs below show that the gross government and transport infrastructure investment is significant lower in compare with other peer countries.
However, there are matters such as long-term planning and long processes regarding to decision making, which discourage private investors to put funds into the development of the framework industry (OECD 2014e). Thus, the financing of the framework in the UK has got a negative trend. In addition, the UK recorded significant progress in investing more funds in ‘green’ frameworks (OECD 2012).
The demand for the households, which is caused first of all by the number of immigrants and high birth rate, is fundamentally higher than the level of supply. There are more citizens than the number of the houses; especially this trend is visible in metropolis such as London, what causes the longer expectations time for a house from the council and generally dissatisfaction among the population.
Summary of Chapters
II. Executive summary: This section provides an overview of the key economic sectors requiring reform, including infrastructure, housing, finance, and labor, as identified by the OECD.
III. Introduction: This chapter outlines the historical economic standing of the UK and the impact of the 2008 financial crisis, highlighting the subsequent austerity measures and the need for structural policy adjustments.
IV. Infrastructure: This section analyzes the state of UK infrastructure, emphasizing the need for investment in roads, railways, airports, and environmental sustainability to maintain competitiveness.
V. Households: This chapter addresses the housing shortage in the UK, proposing reforms to the planning system, land taxation, and rental policies to balance supply and demand.
VI. Finance: This section evaluates public finance recovery post-crisis, suggesting improvements to the tax system and budgetary regulations to ensure long-term stability.
VII. Employment and migration: This chapter discusses labor market trends, migration impacts on public benefits, and the necessity of aligning the education system with technical skill requirements.
VIII. Conclusion: This final section synthesizes the primary recommendations across all sectors to support economic growth and productivity in the United Kingdom.
Keywords
United Kingdom, OECD, Economic Policy, Infrastructure, Housing Shortage, Austerity, Public Finance, Taxation, Labour Market, Migration, Education, Sustainability, Economic Growth, Productivity, Investment.
Frequently Asked Questions
What is the primary focus of this paper?
The paper evaluates the economic efficiency of the UK using 2015 OECD reports to identify necessary structural reforms across various sectors.
What are the central thematic areas covered in the analysis?
The central themes include infrastructure development, the housing market, public finance stability, and labor market dynamics.
What is the ultimate goal of the proposed reforms?
The primary goal is to improve economic efficiency and foster long-term growth following the UK's recovery from the 2008 financial crisis.
Which scientific methodology is primarily applied?
The study utilizes policy analysis and descriptive economic research based on data and recommendations from international organizations, primarily the OECD.
What does the main body of the work address?
The main body focuses on specific policy interventions in infrastructure, housing, public sector finance, and human capital through education and migration management.
Which keywords best characterize this work?
Key terms include economic policy, UK infrastructure, austerity, housing supply, fiscal reform, and labour productivity.
How does the paper suggest improving the UK housing market?
The paper suggests increasing housing supply through land development, implementing a land value tax, and improving the stability of rental contracts.
What role does migration play in the author's economic outlook?
The author discusses the impact of migration on the housing market and public benefits, suggesting stricter control of benefits for new migrants to optimize government spending.
- Quote paper
- MBA graduate Kat Szydlowska (Author), 2016, The Economy of London, Munich, GRIN Verlag, https://www.grin.com/document/421558
