Economic Policy Committee (EPC) Dr. Cecilia Rouse

Economic Policy Committee (EPC) Ms. Cecilia Rouse

1. What is the mission and mandate of your Committee?

The overarching aim of the Economic Policy Committee (EPC) is to contribute to balanced and sustainable economic growth with due attention to social and environmental consequences. We promote financial stability and responsible structural, fiscal, and monetary policies.

2. You have been designated Committee Chair. What is your background and what has convinced you to take up this post? How do you consider your background and experience contribute to such a role and function?

In the United States, I am the Chair of the Council of Economic Advisers (CEA); this position has also traditionally chaired the EPC. In my role as chair of the CEA, I advise President Biden on domestic and international economic policy. As an academic, my focus is on labor economics, but I have also worked in both the Clinton and Obama Administrations. I decided to come back to public service because a core aim of the Biden-Harris Administration’s economic policy agenda is to restore the public sector as a partner in fostering long-run growth. As the pandemic has so clearly proven, it is critical to have effective partnership between the private and public sectors if we are going to effectively respond to our biggest challenges.

I enjoy chairing the EPC because sharing experiences and perspectives is key to us all developing stronger and more effective economic policy. Importantly, cooperation tangibly advances our shared economic interests.

3. What is your main priority as Chair?

The OECD Vision Statement says it best: "we will pursue sustainable economic growth and employment, while protecting our planet. Our shared endeavour is to end poverty, to tackle inequalities and to leave no one behind. We want to improve the lives and prospects of everyone, inside and outside the OECD." My priority as chair of the EPC is to support work toward achieving these goals by developing actionable policies on behalf of our economies and our people.

4. How would you define the added value of your Committee in relation to the work of the OECD in an international context? How does it differ from other international fora dealing with the same topic?

OECD members are committed to shared values. These include the preservation of individual liberty; the values of democracy, the rule of law and the protection of human rights; and open, trading, competitive, sustainable, and transparent market economies. The EPC has top-notch experts that provide practical perspectives and experiences on fostering sustainable market economies. Our collaboration and expertise are what sets us apart from other international fora.

5. Are you facing any specific major challenge derived from the current multilateral environment?

We have all faced challenges over the past couple years. The ongoing recovery from the pandemic has exposed vulnerabilities in our economies that arise from lack of competition and undiversified supply chains. Russia’s invasion of Ukraine has highlighted the dire need to diversify energy sources, and to shift toward renewables in particular. At the same time, these challenges reinforce the importance of high-level economic discussions to share experiences and insights from our individual perspectives and circumstances.

6. How do you encourage, and ensure national experts engage productively in the work of your Committee?

Since I’ve never really stopped being a professor, I have prioritized making the most of our committee’s precious time together to have interactive discussions that spur cross-fertilization of thought. One of the innovations we have successfully employed is to encourage members to submit short written responses to questions in advance of the meetings so we can focus on substantive and constructive discussion and spend less time on pre-scripted statements. I have been grateful for, and benefited from, the active participation of our Committee members.

7. How do you help maximize policy coherence through the work of the Committee?

The EPC makes well-considered policy recommendations based on economic evidence that work across different economies. We look at how economic policies have performed on national and regional levels and assess the effects of individual policies across countries. We consider political economy issues and pragmatic ways to achieve economic goals.

8. How do you ensure effective decision making by the Committee?

We give everyone a voice and aim to have practical outcomes from our research and discussions. When faced with a gap or a problem, we boil it down to concrete, actionable items. For example, we wanted a greater focus on inclusive growth, but were missing some insights due to the aggregation of economic data being collected. Going forward based on our guidance, the Secretariat is collecting and analyzing additional disaggregated data to gain better visibility on inequality within the economies they analyze. As a result, publications such as Going for Growth will have an augmented focus on gender issues and more nuanced recommendations.

9. Could you mention the most important documents/reports that the Committee/Group has issued in the last 2 years? Why are these important and what has been their impact?

The March, 2022 Interim Report Economic and Social Impacts and Policy Implications of the War in Ukraine and the WP1’s Framework to Decarbonise the Economy are two examples of important and timely publications that provide common ground for responding to the challenges of the invasion of Ukraine and the green energy transition, respectively. The Ukraine report was one of the earliest economic analyses following the invasion, and it helped inform governments’ and international organizations’ thinking about the crisis. I understand it was one of OECD’s most downloaded reports ever.

10. How can you encourage synergies between policy communities?

The EPC recognizes that economic policy is not created in a vacuum. Our issues are cross-cutting by their nature: climate change, labor markets, inequality to name a few. We have made a practice of interacting with other directorates and committees by sharing insights, reviewing products, and finding synergies. I would love to see even more of this kind of collaboration.

The Secretariat provides historical context, linkages, and perspective from inside the OECD. They are an invaluable partner in enabling the EPC to achieve its goals.

12. In relation to the standard-setting role, what do you suggest to maintain the relevance and impact of OECD standards over time? Which areas need strengthening?

The OECD is an innovative platform for setting standards and building consensus. This is not quick work, so it is important to develop sustainable standards over the long term, and to begin the work of updating them before they become obsolete.

13. How have you ensured a contribution of your actions or influence to continuous improvement within the Organisation?

I’m proud of the way the EPC has adapted to the COVID-19 environment with in-person, virtual, and hybrid collaboration. We have remained responsive to the changing economic environment by providing analysis, for example, of the anticipated economic impact of the situation in Ukraine on global energy markets and the recovery of labor markets amid the COVID-19 pandemic. The work of the EPC and the Economics Department on these issues has served to inform policymakers of member countries.

14. What are the practical implications of the work of your Committee/Group?

The EPC advances core OECD priorities, including potential economic reforms. Our work is sometimes challenging, but always relevant for both members and nonmembers.

15. What would be your key advice to a person taking up the post of Chair of an OECD Committee/Group?

It is important to get to know your colleagues and build good relationships across the organization. Although we have only sporadically been able to meet in person, we have seen the fruits of collaboration with trusted partners.