Organization For Economic Cooperation Research Articles

Calculating a Prefecture-Level Well-Being Index in Japan: Applying the framework of the OECD's Better Life Index.

Objectives Well-being serves as a crucial indicator of national governance and societal advancement. Consequently, the Better Life Index (BLI) developed by the Organisation for Economic Co-operation and Development (OECD) has emerged as a pivotal multidimensional measure of well-being, surpassing traditional indicators such as Gross Domestic Product (GDP). However, current well-being indicators predominantly focus on national measurements and do not effectively evaluate well-being in smaller regions such as states or prefectures. This study aimed to calculate a Regional Well-Being Index (RWI) tailored to localized areas in Japan.Methods Japanese official statistics, publicly available as open data, were analyzed, focusing on 11 domains similar to those in the BLI: "Income," "Jobs," "Housing," "Health," "Work-Life Balance," "Education," "Community," "Civic Engagement," "Environment," "Safety," and "Life Satisfaction." The RWI scores were calculated for each prefecture in 2010, 2013, 2016, and 2019 using standard normalization techniques. To represent the overall well-being of each prefecture in each year, scores were aggregated across all domains; this aggregate is referred to as the Integrated RWI. The reliability and validity of RWI were assessed by examining time-series changes and Pearson's correlation coefficients.Results Median Integrated RWI scores for Japanese prefectures remained relatively stable across the study period, with slight variations observed: median = 0.67 (Interquartile range [IQR]: -2.48-2.71) in 2010, median = 0.00 (IQR: -2.85-2.76) in 2013, median = 0.13 (IQR: -3.05-2.49) in 2016, and median = 0.19 (IQR: -2.75-3.06) in 2019. Geographical analysis showed lower scores in regions such as Western Kyushu and Shikoku, and higher scores in Chubu and Eastern Kinki. The RWI and the BLI demonstrated construct validity, with Pearson's correlation coefficients ranging from 0.58 to 0.99 across various domains.Conclusion The RWI, based on the OECD's BLI, proved to be a reliable and valid tool for assessing comprehensive well-being at the regional level in Japan. It offers foundational data for identifying challenges to regional well-being and shaping targeted policies, thereby contributing to evidence-based policymaking. Moreover, this methodology has potential applicability in evaluating comprehensive well-being beyond GDP at the regional level in other countries using official statistics.

An assessment of economy- and transport-oriented health performance

BackgroundGood health can prolong one’s lifespan and is a fundamental human right. Thus, human health is being influenced by prejudiced from sociological, environmental, economic, and geographic aspects. The economy and transportation system pose a serious challenge to the assessment of the health performance of economies.ObjectiveThis study aims to assess the health performance of Organization for Economic Cooperation and Development (OECD) economies by using economic and transport-related indicators and examining the role of health expenditure and governance in improving efficiency.MethodsThis study measures the economy- and transport-oriented health efficiency of 35 OECD economies for the period of 2000–2022. In the first stage, this study employs a slacks-based measure and the data envelopment analysis–window analysis approach to conduct individual (economy and transportation) and joint assessments to measure health efficiency. In the second stage, this study uses the tobit regression method to investigate the effects of influencing factors, namely, government general health and pharmaceutical expenditures, the medical infrastructure, and governance, on health efficiency.ResultsEmpirical results reveal that a 1-unit change in the health expenditure during the research period improves economy-oriented health efficiency by 71% and transport-oriented health efficiency by 58%. The econometric analysis demonstrates that all the coefficients of economy- and transport-oriented health efficiency are significant and positive. Notably, a 1-unit change in the medical infrastructure increases economy- and transport-oriented health efficiency by 50.8%, and a 1% increase in pharmaceutical expenditure increases the health, economy, and transport efficiency scores by 16.3%, 33%, and 58.6%, respectively.ConclusionsThe findings suggest that some of the economies were efficient with regard to their health-oriented outputs, that is, quality of life and mortality and morbidity rates, and most of the economies demonstrated excellent economic performance. The findings of the transport-oriented health efficiency assessment reveal that the economies were unable to perform well in the last year of the research period owing to the nationwide lockdowns. Nonetheless, they demonstrated efficiency in the first half of the research period. The joint assessment of economy- and transport-oriented health efficiency indicates that economic and transport input resources can adversely affect the GDP and life expectancy simultaneously, and the medical infrastructure, pharmaceutical expenditure, and number of medical graduates serve as constructive stimuli for health efficiency improvement.

Hybrid Modeling Techniques for Municipal Solid Waste Forecasting: An Application to OECD Countries

Abstract Accurate forecasting of municipal solid waste (MSW) generation is critical for effective waste management, given the rising volumes of waste posing environmental and public health challenges. This study investigates the efficacy of hybrid forecasting models in predicting MSW generation trends across Organization for Economic Cooperation and Development (OECD) countries. The empirical analysis utilizes five distinct approaches – ARIMA, Theta model, neural networks, exponential smoothing state space (ETS), and TBATS models. MSW data spanning 1995–2021 for 29 OECD nations are analyzed using the hybrid models and benchmarked against individual ARIMA models. The results demonstrate superior predictive accuracy for the hybrid models across multiple error metrics, capturing complex data patterns and relationships missed by individual models. The forecasts project continued MSW generation growth in most countries but reveal nuanced country-level differences as well. The implications for waste management policies include implementing waste reduction and recycling programs, investing in infrastructure and technology, enhancing public education, implementing pricing incentives, rigorous monitoring and evaluation of practices, and multi-stakeholder collaboration. However, uncertainties related to model selection and data limitations warrant acknowledgment. Overall, this study affirms the value of hybrid forecasting models in providing robust insights to inform evidence-based waste management strategies and transition toward sustainability in the OECD region.

Social Cost of Carbon as an International Benchmark to Drive Countries’ Carbon Pricing during the Transition

Building on updated estimates of the social cost of carbon obtained from the most recent literature, this article proposes a social cost of carbon-based benchmark for carbon pricing to drive world countries’ carbon pricing policies up to 2050, consistent with the Paris Agreement targets. By using a dataset on net effective carbon rates developed by the Organisation for Economic Co-operation and Development (OECD), we firstly compare both explicit and implicit carbon pricing in 2021 in 71 OECD and non-OECD countries with the social cost of carbon benchmark for 2021 and calculate the degree of internalization of the social cost of carbon averagely related to their carbon pricing instruments. We find that there is a serious gap in current climate policies, which are far from creating optimal pricing conditions to reduce global emissions to levels needed by the Paris Agreement. The economic and distributional feasibility of a full implementation of the carbon pricing benchmark is tested in the same set of countries using two indicators, which are calculated for 2025, 2030, 2040 and 2050. Since the test results are income-regressive among income country groups, benchmark implementation by countries within the cooperative approaches of Paris Agreement art. 6 should be accompanied by the creation of an international cooperative fund aimed to recycle at least part of the revenues collected by high-income countries to compensate affected population in lower-income countries.

Effects of Corruption and Informality on Economic Growth through Productivity

Corruption and informality are issues which have attracted a great amount of empirical research, since they are variables that can affect economic development in various and complex ways, with direct and indirect effects on economic growth. In this context, the objective of this investigation is to assess the impacts of corruption and informality on economic growth and productivity in countries from Latin America and the OECD (Organisation for Economic Co-operation and Development). To achieve this, a 3SLS-GMM estimation is proposed to manage the endogeneity of the variables in the system of equations. Subsequently, a simulation analysis is conducted to quantify the impacts of increases in corruption and informality on growth and productivity, as well as the influence of human capital in counteracting these impacts. The main findings of the research are as follows: (i) corruption decreases economic growth and productivity in both groups of countries; (ii) informality negatively affects economic growth and productivity; (iii) increases in corruption and informality reduce economic growth and productivity; and (iv) human capital has a positive impact on economic growth and reduces the negative impacts of corruption and informality.

Is Redistribution Good for Our Health? Examining the Macrocorrelation between Welfare Generosity and Health across EU Nations over the Last 40 Years

Context: Social determinants of health are finally getting much-needed policy attention, but their political origins remain underexplored. In this article, the authors advance a theory of political determinants as accruing along three pathways of welfare state effects (redistribution, poverty reduction, and status preservation), and they test these assumptions by examining impacts of policy generosity on life expectancy (LE) over the last 40 years. Methods: The authors merge new and existing welfare policy generosity data from the Comparative Welfare Entitlement Project with data on LE spanning 1980–2018 across 21 countries in the Organization for Economic Cooperation and Development. They then examine relationships between five welfare policy generosity measures and LE using cross-sectional differencing and autoregressive lag models. Findings: The authors find consistent and positive effects for total generosity (an existing measure of social insurance generosity) on LE at birth across different model specifications in the magnitude of an increase in LE at birth of 0.10–0.15 years (p < 0.05) as well as for a measure of status preservation (0.11, p < 0.05). They find less consistent support for redistribution and poverty reduction measures. Conclusions: The authors conclude that in addition to generalized effects of policy generosity on health, status-preserving social insurance may be an important, and relatively overlooked, mechanism in increasing LE over time in advanced democracies.

Lack of genotoxicity and subchronic toxicity in safety assessment studies of Akkermansia muciniphila formulation

A powder formulation of viable Akkermansia muciniphila bacteria (AMUC) was evaluated in a 90-day repeated-dose toxicity study in rats and a battery of genotoxicity studies to evaluate AMUC as a food ingredient. All studies followed Organisation for Economic Co-operation and Development protocols (OECD TG 408, 471 473, 474). AMUC was administered to rats via gavage at 0, 500, 1000, and 2000 mg/kg body weight/day (equivalent to 0, 4.1 × 1010, 9.2 × 1010, and 1.64 × 1011 CFU/kg body weight/day). No mortality or treatment-related adverse effects were reported in any endpoints that were attributed to AMUC consumption. No bacterial translocation of viable A. muciniphila from the intestinal tract was found to the liver, mesenteric lymph nodes, or blood. The no-observed-adverse-effect level was concluded to be the highest dose tested (2000 mg/kg body weight/day), approximately 1.64 × 1011 CFU/kg body weight/day. AMUC (nonviable) was not mutagenic when examined in an in vitro bacterial reverse mutation assay and not clastogenic in an in vitro mammalian chromosomal aberration test. Viable AMUC was not genotoxic when evaluated in an in vivo mammalian cell micronucleus assay when administered at up to 1.64 ×1011 CFU/kg body weight/day. These results confirm that AMUC is not toxic under the conditions of these studies.

An analysis of humanitarian and health aid harmonisation over a decade (2011–2019) of the Syrian conflict

IntroductionAid harmonisation is a key component of donor efforts to make aid more effective by improving coordination and simplifying and sharing information to avoid duplication. This study evaluates the harmonisation...

Safety assessment of novel oxadiazole derivatives in acute and sub-acute toxicity studies.

1,3,4-Oxadiazole is a fascinating heterocyclic compound with a unique five-membered ring structure containing nitrogen and oxygen atoms. It has garnered significant attention for its interactions and activities within biological systems. This versatility has led to the production of several ligands using this compound as a pharmacophore. This study evaluates the acute toxicity of three oxadiazole derivatives (1,3,4-Bromo, Chloro, and Iodo) followed by a 28days sub-acute study involving four different doses of each derivative. The study followed the guideline, the Organization for Economic Cooperation and Development (OECD) outlined, specifically OECD Guidelines 425 for the acute toxicity study and OECD Guidelines 407 for the sub-acute study. In the acute toxicity study, a high dose of 2000 mg/kg was administered to male and female rats to establish lethal dose 50 (LD50) values, and the rats were closely monitored for 14 days. The subsequent sub-acute study involved the administration of four different doses (1.25, 2.5, 5, and 10 mg/kg) of each derivative to male and female rats for 28 days. Throughout both studies, careful monitoring for signs of toxicity and comprehensive hematological, biochemical, and histological analysis were carried out thoroughly. The results of the acute toxicity study indicated that all three derivatives had LD50 values exceeding 2000 mg/kg, and the rats did not display significant signs of toxicity. Similarly, no organ or systemic toxicity was observed in the repeated dose sub-acute study for any of the three derivatives. In conclusion, based on the findings of these studies, it was determined that the derivatives are safe for further investigation of their pharmacological activity.

Inter-Nation Equity And The Regulation of Tax Competition via the Global Minimum Tax Rule: A Case for Improvement

The Organization for Economic Co-operation and Development (OECD) is an institution that influences policymaking in international tax law, and it is changing the international tax architecture to deal with tax competition by encouraging countries to adopt a global minimum tax rule. This emerging rule – called Pillar Two in international tax circles – is inadequate for dealing with poverty and inequality in an asymmetrical global context. The rule is premised on the notion and argument that tax competition is a problem for international tax law. Notwithstanding, there is existing research and evidence to show that tax competition can also be a solution to the enormous challenge of poverty and inequality as it can have a redistributive effect. This is a valuable factor amid the inefficiently asymmetrical global society with extreme poverty in many countries and enormous wealth in a few others.This article submits that the Pillar Two minimum tax rule – the Global Anti-Base Erosion (GloBE) Rules encompassing the income inclusion rule (IIR), undertaxed payment/profit rule (UTPR), and qualified domestic minimum top-up tax (QDMTT) – should incorporate inter-nation equity to prevent exacerbating global inequality and poverty. Pillar Two intensifies these for at least two reasons: (1) it restricts the positive redistributive effects of tax competition on an inefficiently asymmetrical global society, and (2) it encourages tax competition more suited for high-income countries (HICs) and less suited for those that are low-income countries (LICs). There is latitude to incorporate a differentiated principle deriving from inter-nation equity into this new Pillar Two rule designed to regulate tax competition globally. This proposal requires that the emerging rule be disenabled in certain circumstances to enable LICs to choose whether to apply the rule without being worse off. The article’s proposal seeks to allow LICs room for effective tax competition needed to attain sustainable development goals.

Dermal toxicity studies of 1,2-benzisothiazolin-3-one (CAS number: 2634-33-5) in Sprague-Dawley rats

Biocides are used as preservatives in various household products, and 1,2-benzisothiazolin-3-one (BIT) is one of the popular chemicals. Therefore, BIT is highly likely to be exposed to human skin, necessitating dermal toxicity evaluation. In this study, we aimed to investigate dermal toxicity, eyes and skin irritation, and skin sensitization of BIT. All studies were conducted according to the Organisation for Economic Co-operation and Development testing guidelines. In acute dermal toxicity using rats, no treatment-related responses were observed at the highest dose (2000 mg/kg). A 28-day repeated dermal toxicity study at 1, 4, and 12 mg/kg/day showed transient local skin irritation lesions, including erythema, exfoliation, and crust formation. Based on no systemic effects, the no observed adverse effect level (NOAEL) of BIT of the 28-day repeated dermal toxicity study was determined to be 12 mg/kg/day. Eye and skin irritation tests showed that BIT is a strong irritant and corrosive to the eyes and a mild irritant to the skin. However, BIT showed no skin sensitization reactions in a local lymph node assay. These dermal toxicity studies can provide valuable information for the risk assessment of BIT.

Burden of Kidney Cancer Attributable to Smoking in 38 Organisation for Economic Cooperation and Development (OECD) Countries, 1990-2021: Insights from the Global Burden of Disease Study 2021

Burden of Kidney Cancer Attributable to Smoking in 38 Organisation for Economic Cooperation and Development (OECD) Countries, 1990-2021: Insights from the Global Burden of Disease Study 2021

Совершенствование налоговой системы России в 2024 году: межстрановые сравнения и региональная проекция

The article discusses the additional adjustment of the tax system carried out in the Russian Federation in 2024, primarily in terms of changes in the rates of corporate income tax and personal income tax. Based on the analysis, a conclusion is made about the comparability of the levels of these taxes in Russia and in some countries of the Organization for Economic Cooperation and Development. It is shown that the centralization of additional revenues arising from the ongoing improvement of the tax system is more effective than the potential redistribution of these revenues to regional budgets due to the high concentration of corporate income tax and personal income tax in the wealthiest regions of Russia.

Phytochemical and Toxicity Evaluation of Methanol Extracts of Leaves and Fruits of Zanthoxylum rhetsa (Rutaceae)

Zanthoxylum rhetsa is extensively utilized in the realm of gastronomy and therapeutics. However, existing literature lacks any documentation concerning the systematic assessment of the toxicity characteristics of the foliage and produce of Z.rhetsa. Consequently, the present inquiry was executed to appraise the immediate toxicity examinations of the methanol extract derived from the leaves and fruits in mice, in accordance with the regulations delineated by the Organization for Economic Cooperation and Development (OECD 420, 2001). In this investigation, a solitary dosage of 5000 mg/kg body mass of the specimen was administered to female mice, as stipulated by the OECD guidelines. Daily surveillance ensued for a total of fourteen days, with the objective of detecting any indications of toxicity or fatality. Upon the culmination of this two-week period, a comprehensive analysis involving hematological, biochemical, and histopathological evaluations was conducted. The outcomes of the immediate toxicity investigations evinced that neither the leaves nor the fruits extract exhibited any morbidity, conspicuous alterations in corporeal mass, nor any discernible impairment in behavioral or motor neural activities in the mice. The haematological and serum biochemical parameters did not exhibit significant disparities from the control groups. These findings were corroborated by histopathological investigations, wherein no abnormalities or pathological alterations were detected in the vital organs. The LD 50 (oral lethal dose) of the samples was determined to exceed 5000 mg/kg body weight. Consequently, the methanol extract of leaf and fruit extract of Z.rhetsa can be regarded as non-toxic and demonstrated a broad margin of safety for its therapeutic application.

A Critical Analysis of Selected Aspects of Real Estate Taxation in the Context of Recent Legislative Amendments in the Czech Republic

The real estate tax is the sole property tax in the Czech Republic and has been part of its tax system since its establishment, i.e. since January 1, 1993. The Czech Republic has long been recommended by the Organisation for Economic Co-operation and Development (OECD) to increase the collection of this tax because its yield as a share of gross domestic product (GDP) is one of the lowest among all OECD and EU countries. The lower yield is in part attributable to the manner in which the tax base is determined. The Czech Republic, with the exception of a few minor instances, continues to employ the assessment-based rather than the value-based method of determining the tax base. Furthermore, the Czech Republic is encouraged to use the correction elements at the disposal of municipalities to influence the amount of property tax. This article examines the revenue aspect of real estate tax in the Czech Republic, including the determination of the tax base and the use of correction mechanisms. In light of these considerations, it is evident that the development of the Czech real estate tax system has been influenced by a number of factors, including the introduction of one of the most significant amendments to the Real Estate Tax Act in the country’s history. This amendment, known as the consolidation package, was implemented on January 1, 2024 and has had a profound impact on the current legislation.

Development of a Clinical Guideline for Suicide Prevention in Psychiatric Patients Based on the ADAPTE Methodology.

Suicide is a significant public health issue, with South Korea having the highest suicide rate among Organisation for Economic Cooperation and Development countries. This study aimed to develop clinical guidelines for suicide prevention in psychiatric patients in Korea using the ADAPTE methodology. The development process involved a comprehensive review of literature, expert consultations, and consensus-building using the Nominal Group Technique and Delphi method. The guidelines focus on evidence-based psychiatric treatments, including both pharmacological and non-pharmacological approaches, tailored to the Korean context. Key findings underscoring the need for standardized treatment protocols for patients with major psychiatric disorders, including bipolar disorder, major depressive disorder, and schizophrenia. The guidelines incorporate treatments like lithium, clozapine, atypical antipsychotics, electroconvulsive therapy, and cognitive behavioral therapy, which have shown effectiveness in suicide prevention. Applicability and acceptability within Korea's healthcare system were addressed, ensuring feasibility given the country's medical insurance coverage and accessibility. The guidelines were validated through expert reviews and Delphi rounds, achieving consensus on the final recommendations. The developed guidelines provide a structured, evidence-based approach to reducing suicide rates among psychiatric patients in Korea. Future research will focus on expanding these guidelines to include screening protocols for high-risk groups.

Trends in the development of the practice of using accumulative mechanisms of pension provision in OECD countries

The relevance of the study of issues related to the development of the practice of using pension provision accumulative mechanisms is out of question due to the challenges faced by pension systems of countries around the world. The research methodology is based on economic and mathematical tools for processing data characterizing the indicators of using accumulative mechanisms of pension provision in OECD (Organization for Economic Cooperation and Development) countries. The paper defines groups of OECD countries depending on the supplier of pension products, as well as the type of pension plan. Based on the analysis of data on the use of pension plans depending on the above factors, the author identified the countries-leaders in each of the identified groups. Based on the results of the study, a list of key trends in the development of the practice of using accumulative mechanisms of pension provision in OECD countries was formulated. The largest group of countries included those states where contracts for pension products are concluded mainly with non-state pension funds. Among the results obtained, it is necessary to highlight the lack of parity in the application of all types of pension plans supplied by non-state pension funds, since the dominance of any one of the types is recorded in each state. The results of the study will have practical significance when implementing substantiations of state decisions on issues of regulating the practice of using accumulative pension mechanisms as an integral component of the pension system of the Russian Federation. This is especially important in the context of achieving the national goals of the development of the Russian Federation for the period up to 2030, implementing the Strategy for the Development of the Pension System of the Russian Federation for the period up to 2030 and the Strategy for the Development of the Financial Market of the Russian Federation until 2030.

The effect of government investments on the environment: An empirical investigation of OECD countries

Sustainable development and climate change mitigation have become key priorities of economic policy. These priorities also remain relevant in the government investments. However, theoretical approaches indicate that government investments have both favourable and detrimental effects on environmental quality. Besides, the current literature has dealt with the impact of government expenditures in general. Based on this theoretical foundation and literature motivation this study addresses the impact of government investments on carbon emissions, in the case of 38 Organisation for Economic Co-operation and Development countries. For this purpose, in the models estimated for 2 different indicators of carbon emission, besides the lagged carbon emissions, income level, industrial production, energy intensity and renewable energy variables, government investments were also included into the analysis as additional explanatory variable. Considering the dynamic nature of our model, we implemented the system generalized method of moments on panel data and the findings of all different estimates demonstrate that government investments increase environmental pollution. Furthermore, our findings indicate that the path dependence of carbon emissions is strong and point to the carbon-mitigating effect of income level and renewables, and the carbon-increasing effect of industrial production and energy intensity. Our results support the pro-market view on the environmental impact of government investments and point to environmental efficiency problems arising from the decision-making processes of government investments. Furthermore, our results are not in favor of the opinion that government investments are decided based on social costs and social benefits, including externalities, and therefore have a long-term sustainability perspective.

Policy analysis of the triple burden of malnutrition in children below 5 years of age in Oman

Background: Oman faces the triple burden of malnutrition (TBM) among children under 5 years of age, characterized by stunting, overweight, and wasting. This critical issue impacts children’s healthy development and the country’s progress toward the UN Sustainable Development Goal three addressing good health and well-being. Methods: This study employs secondary data analysis to investigate the prevalence and trends of stunting, overweight, and wasting among children under 5 years of age in Oman, compared with selected Gulf Cooperation Council countries and the Organization for Economic Co-operation and Development (OECD) countries. Data sources include the United Nations International Children’s Emergency Fund, the World Health Organization, and the World Bank Group. Kingdon’s Multiple Streams Framework (MSF) and Howlett’s Policy Implementation Theory are used to critically analyze Oman’s strategies for improving child malnutrition. Results: The prevalence of stunting in Oman decreased from 12.3% in 2012 to 11.6% in 2022. The percentage of children who are overweight increased significantly from 2.9% in 2012 to 6.5% in 2022, surpassing trends in OECD countries. The incidence of wasting was 9.3% in 2017. Conclusion: The three critical aspects to address TBM in Oman are (1) policy gaps (the need for regular follow-up of children under the age of 5 years), (2) implementation barriers (need for regular program review and stakeholder engagement), and (3) the need for tailored interventions. These challenges can be rectified by (1) implementing an expansion of nutrition programs through early education in childcare facilities, (2) increasing parental awareness, and (3) increasing collaboration with healthcare providers (through childcare health programs) for continuous monitoring and support.

Research on the Two-Pillar Solution and Its Implication

With the rapid development of economic globalization and digitalization, new business models are activating the world economy while exacerbating the remaining problems of base erosion and profit shifting (BEPS). In the face of intensifying international tax avoidance, The Organisation for Economic Co-operation and Development (OECD) has announced its Two-pillar solution to the international community, proposing a global minimum tax regime, which is effectively a coordination of global anti-tax avoidance measures. At present, Pillar 2 has come into effect, and Pillar 1 has also been opened for signature, marking the implementation stage of the two-pillar solution. In this paper, the two-pillar solution is the main research object. Firstly, from the perspective of large-scale tax avoidance by multinational corporations, this paper systematically analyzes the historical background of the introduction of the two-pillar solution of the OECD. After a detailed analysis of the provisions of the two-pillar solution, the existing institutional deficiencies and obstacles to its implementation are proposed. Finally, in response to the issues raised, practical recommendations are made that the elements of the two-pillar solution should aim to achieve general equity, balance the interests of developing countries and be in harmony with existing international tax policies. The governments should also optimize the structure of tax incentives.