Organisation for Economic Co-operation and Development

The Organization for European Economic Cooperation, or OEEC, was the original name of the OECD. It was founded in 1948, following World War II, to oversee the Marshall Plan for Europe’s reconstruction. Its mission was to assist European policymakers in understanding their economic interdependence thus, making it one of the foundations of the European Union.

Canada and the United States joined the OEEC states, which formed the OECD on Dec. 14, 1960, when the Marshall Plan was completed. It was established on September 30, 1961, when it became fully operational.

What is the Organisation for Economic Co-operation and Development (OECD)?

The Organization for Economic Cooperation and Development, or OECD, is an international organization dedicated to policy cooperation and economic freedom among industrialized countries. The Organization for Economic Cooperation and Development (OECD) arose from the Organization for European Economic Cooperation (OEEC), which was founded in 1948 to monitor American and Canadian contributions to the Marshall Plan and established in 1961.

OECD’s mission is to support policies that improve people’s economic and social well-being around the world. The OECD makes use of its vast database of data on a variety of areas to assist governments in fostering prosperity and combating poverty through economic growth and financial stability. 

OECD Members and Headquarters: 

The OECD membership procedure is lengthy and complicated. Different member committees must evaluate a country. The procedure includes checking for compliance with OECD instruments, benchmarks, and norms to restructure its economy in order to reach international norms in areas such as corporate governance, anti-corruption, and environmental protection. 

• The 38 OECD members are mostly from Europe. Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Lithuania, Hungary, Iceland, Ireland, Italy, Latvia, Sweden, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Switzerland, and the United Kingdom.
•  Canada, Chile, Colombia, Mexico, Costa Rica, and the United States are the five countries in the Americas. 
• Korea, Australia, Japan, and New Zealand are the four Pacific members. Israel and Turkey are the Middle East’s two representatives

• Brazil, Indonesia, China, India, and South Africa have been identified as strategic partners but not members.

The OECD’s main headquarters is in Paris, France, at rue André Pascal. Berlin, Mexico City, Tokyo, and Washington, D.C. are also states with OECD offices.

Structure of OECD: 

• The Council is the OECD’s highest body, entrusted under the Convention to be the source of all the organization’s acts. It is in charge of strategic planning and oversight. The European Commission and one person from each member country make up the Council.
• The Council and subsidiary bodies make up the OECD bodies. Standing committees, special bodies, and substantive committees are the three types of committees. The OECD has 37 Level 1 committees in terms of substantive committees. Many of them have sub-committees with titles like Level 2, Level 3, and even Level 4. There are more than 250 committees in total.
• The OECD Secretariat is responsible for carrying out the Council’s mandates. It analyses data, examines policy, and makes suggestions based on worldwide performance. 
• In the decision-making process, the Secretary-General plays a crucial role. Mr. Mathias is the OECD’s sixth Secretary-General. He is in charge of the organization, leading the Secretariat, managing the budget, assisting all bodies, and representing it.
• The committees are the third pillar. Over 250 committees comprised of over 40,000 international professionals from all over the world share information and ideas, as well as track progress in their respective policy areas.

Objectives of OECD: 

The OECD’s primary objective is to improve the global economy and encourage global trade. It provides a forum for governments from many countries to collaborate on solutions to common concerns. It entails collaborating with democratic countries that share a commitment to enhancing the economy and overall well-being of their citizens. The major goal of the OECD is to assist countries around the world in achieving the following:

• To increase trust in markets and the companies that support them.
• Grow through innovation, ecologically sustainable practices, and developing economies’ long-term viability.
• Obtain sound public finances in order to achieve long-term economic growth.
• Make tools available to help people gain the skills they need to be productive.

Responsibilities and Functions:

The OECD plays a critical role in promoting global economic stability. OECD works to publish and update a model tax convention that is used as a blueprint for assigning taxation rights between countries.

• It is responsible for providing economic studies, assessments, statistical databases, and projections on the global economic outlook.
• The group studies the influence of social concerns on economic growth and gives recommendations to help the world’s economy grow. Environmental concerns related to economic development are also addressed in these recommendations.
• To eradicate bribery and other financial crimes around the world.
• The OECD also maintains a “blacklist” for those countries that it considers to be uncooperative tax havens.
• Work in the G-20 countries to eliminate tax dodging by profitable firms and encourages its members to push for tax reform.

Conclusion: 

The OECD’s overall aim is to encourage economic development in member countries, and they intend to keep doing so. Despite competition from forums like the G20 Summit and the Financial Stability Forum, they continue to be a major force in boosting economic efficiency and living standards around the world.