Organisation for Economic Co-operation and Development

Organisation for Economic Co-operation and Development
Organisation de coopération et de développement économiques
OECD logo new.svg
Logo
OECD member states map.svg
     Founding member countries (1961)
     Other member countries
Abbreviation
  • OECD
  • OCDE
Formation 16 April 1948; 70 years ago (1948-04-16) (as the OEEC)a
Reformed in September 1961 (1961-09) (as OECD)
Type Intergovernmental organisation
Headquarters Paris, France
Membership
Official languages
  • English
  • French
José Ángel Gurría
Deputy Secretary-General
Rintaro Tamaki
Deputy Secretary-General
Mari Kiviniemi
Deputy Secretary-General
Douglas Frantz
Budget
€374 million (2017)[2]
Website www.oecd.org
a. Organisation for European Economic Co-operation.

The Organisation for Economic Co-operation and Development (OECD; French: Organisation de coopération et de développement économiques, OCDE) is an intergovernmental economic organisation with 36 member countries,[1] founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members. Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries. As of 2017, the OECD member states collectively comprised 62.2% of global nominal GDP (US$49.6 trillion)[3] and 42.8% of global GDP (Int$54.2 trillion) at purchasing power parity.[4] OECD is an official United Nations observer.[5]

In 1948, the OECD originated as the Organisation for European Economic Co-operation (OEEC),[6] led by Robert Marjolin of France, to help administer the Marshall Plan (which was rejected by the Soviet Union and its satellite states).[7] This would be achieved by allocating United States financial aid and implementing economic programs for the reconstruction of Europe after World War II. (Similar reconstruction aid was sent to the war-torn Republic of China and post-war Korea, but not under the name "Marshall Plan".)[8]

In 1961, the OEEC was reformed into the Organisation for Economic Co-operation and Development by the Convention on the Organisation for Economic Co-operation and Development and membership was extended to non-European states.[9][10] The OECD's headquarters are at the Château de la Muette in Paris, France.[11] The OECD is funded by contributions from member states at varying rates and had a total budget of €374 million in 2017.[2]

History[]

Organisation for European Economic Co-operation[]

The Organisation for European Economic Co-operation (OEEC) was formed in 1948 to administer American and Canadian aid in the framework of the Marshall Plan for the reconstruction of Europe after World War II.[12] It started its operations on 16 April 1948, and originated from the work done by the Committee of European Economic Co-operation in 1947 in preparation for the Marshall Plan. Since 1949, it was headquartered in the Château de la Muette in Paris, France. After the Marshall Plan ended, the OEEC focused on economic issues.[6]

In the 1950s, the OEEC provided the framework for negotiations aimed at determining conditions for setting up a European Free Trade Area, to bring the European Economic Community of the six and the other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency was set up under the OEEC.

By the end of the 1950s, with the job of rebuilding Europe effectively done, some leading countries felt that the OEEC had outlived its purpose, but could be adapted to fulfill a more global mission. It would be a hard-fought task, and after several sometimes fractious meetings at the Hotel Majestic in Paris starting in January 1960, a resolution was reached to create a body that would deal not only with European and Atlantic economic issues, but devise policies to assist less developed countries. This reconstituted organisation would bring the US and Canada, who were already OEEC observers, on board as full members. It would also set to work straight away on bringing in Japan.[13]

Founding[]

Following the 1957 Rome Treaties to launch the European Economic Community, the Convention on the Organisation for Economic Co-operation and Development was drawn up to reform the OEEC. The Convention was signed in December 1960 and the OECD officially superseded the OEEC in September 1961. It consisted of the European founder countries of the OEEC plus the United States and Canada, with Japan joining three years later. The official founding members are:

During the next 12 years Japan, Finland, Australia, and New Zealand also joined the organisation. Yugoslavia had observer status in the organisation starting with the establishment of the OECD until its dissolution as a country.[14]

The OECD created agencies such as the OECD Development Centre (1961), International Energy Agency (IEA, 1974), and Financial Action Task Force on Money Laundering.

Unlike the organisations of the United Nations system, OECD uses the spelling "organisation" with an "s" in its name rather than "organization" (see -ise/-ize).

Enlargement to Central Europe[]

In 1989, after the Revolutions of 1989, the OECD started to assist countries in Central Europe (especially the Visegrád Group) to prepare market economy reforms. In 1990, the Centre for Co-operation with European Economies in Transition (now succeeded by the Centre for Cooperation with Non-Members) was established, and in 1991, the Programme "Partners in Transition" was launched for the benefit of Czechoslovakia, Hungary, and Poland.[14][15] This programme also included a membership option for these countries.[15] As a result of this, Poland,[16] Hungary, the Czech Republic, and Slovakia, as well as Mexico and South Korea[17] became members of the OECD between 1994 and 2000.

Reform and further enlargement[]

In the 1990s, a number of European countries, now members of the European Union, expressed their willingness to join the organisation. In 1995, Cyprus applied for membership, but, according to the Cypriot government, it was vetoed by Turkey.[18] In 1996, Estonia, Latvia, and Lithuania signed a Joint Declaration expressing willingness to become full members of the OECD.[19] Slovenia also applied for membership that same year.[20] In 2005, Malta applied to join the organisation.[21] The EU is lobbying for admission of all EU member states.[22] Romania reaffirmed in 2012 its intention to become a member of the organisation through the letter addressed by the Romanian Prime Minister Victor Ponta to OECD Secretary-General José Ángel Gurría.[23] In September 2012, the government of Bulgaria confirmed it will apply for full membership before the OECD Secretariat.[24]

In 2003, the OECD established a working group headed by Japan's Ambassador to the OECD Seiichiro Noboru to work out a strategy for the enlargement and co-operation with non-members. The working group proposed that the selection of candidate countries to be based on four criteria: "like-mindedness", "significant player", "mutual benefit" and "global considerations". The working group's recommendations were presented at the OECD Ministerial Council Meeting on 13 and 14 May 2004. Based on these recommendations work, the meeting adopted an agreement on operationalisation of the proposed guidelines and on the drafting of a list of countries suitable as potential candidates for membership.[14] As a result of this work, on 16 May 2007, the OECD Ministerial Council decided to open accession discussions with Chile, Estonia, Israel, Russia and Slovenia and to strengthen co-operation with Brazil, China, India, Indonesia and South Africa through a process of enhanced engagement.[25] Chile, Slovenia, Israel and Estonia all became members in 2010.[26] In March 2014, the OECD halted membership talks with Russia in response to its role in the 2014 Crimean crisis.[27][28]

In 2013, the OECD decided to open membership talks with Colombia and Latvia. In 2015, it opened talks with Costa Rica and Lithuania.[29] Latvia became a full member on 1 July 2016 and Lithuania on 5 July 2018.[30][31] Colombia signed the accession agreement on 30 May 2018 and will become full member after the ratification of the accession agreement and the deposition of the ratification document.[32]

Other countries that have expressed interest in OECD membership are Argentina, Peru,[33] Malaysia,[34] Brazil[35] and Croatia.[36]

Objectives and activities[]

Taxation[]

The OECD publishes and updates a model tax convention that serves as a template for bilateral negotiations regarding tax coordination and cooperation. This model is accompanied by a set of commentaries that reflect OECD-level interpretation of the content of the model convention provisions. In general, this model allocates the primary right to tax to the country from which capital investment originates (i.e., the home, or resident country) rather than the country in which the investment is made (the host, or source country). As a result, it is most effective as between two countries with reciprocal investment flows (such as among the OECD member countries), but can be very unbalanced when one of the signatory countries is economically weaker than the other (such as between OECD and non-OECD pairings).

Publishing[]

The OECD publishes books, reports, statistics, working papers and reference materials. All titles and databases published since 1998 can be accessed via OECD iLibrary.

The OECD Library & Archives collection dates from 1947, including records from the Committee for European Economic Co-operation (CEEC) and the Organisation for European Economic Co-operation (OEEC), predecessors of today's OECD. External researchers can consult OECD publications and archival material on the OECD premises by appointment.

Books[]

The OECD releases between 300 and 500 books each year. The publications are updated accordingly to the OECD iLibrary. Most books are published in English and French. The OECD flagship[vague] titles include:

All OECD books are available on the OECD iLibrary, the online bookshop or OECD Library & Archives.[n 1]

Magazine[]

OECD Observer, an award-winning magazine[n 2] launched in 1962.[37] The magazine appeared six times a year until 2010, and became quarterly in 2011 with the introduction of the OECD Yearbook,[n 3] launched for the 50th anniversary of the organisation.[38] The online and mobile[39] ions are updated regularly. News, analysis, reviews, commentaries and data on global economic, social and environmental challenges. Contains listing of the latest OECD books, plus ordering information.[40] An OECD Observer Crossword was introduced in Q2 2013.[41]

Statistics[]

The OECD is known as a statistical agency, as it publishes comparable statistics on a wide number of subjects.

OECD statistics are available in several forms:

Working papers[]

There are 15 working papers series published by the various directorates of the OECD Secretariat. They are available on iLibrary, as well as on many specialised portals.

Reference works[]

The OECD is responsible for the OECD Guidelines for the Testing of Chemicals, a continuously updated document that is a de facto standard (i.e., soft law).

It has published the OECD Environmental Outlook to 2030, which shows that tackling the key environmental problems we face today—including climate change, biodiversity loss, water scarcity, and the health impacts of pollution—is both achievable and affordable.

Structure[]

The OECD's structure consists of three main elements:

Meetings[]

The main entrance to the OECD Conference Centre in Paris

Delegates from the member countries attend committees' and other meetings. Former Deputy Secretary-General Pierre Vinde (sv) estimated in 1997 that the cost borne by the member countries, such as sending their officials to OECD meetings and maintaining permanent delegations, is equivalent to the cost of running the secretariat.[42] This ratio is unique among inter-governmental organisations.[citation needed] In other words, the OECD is more a persistent forum or network of officials and experts than an administration.

The OECD regularly holds minister-level meetings and forums as platforms for a discussion on a broad spectrum of thematic issues relevant to the OECD charter, members and non-member states.[43]

Noteworthy meetings include:

Secretariat[]

Exchanges between OECD governments benefit from the information, analysis, and preparation of the OECD Secretariat. The secretariat collects data, monitors trends, and analyses and forecasts economic developments. Under the direction and guidance of member governments, it also researches social changes or evolving patterns in trade, environment, education, agriculture, technology, taxation, and other areas.

The secretariat is organised in Directorates:

Secretary-General of the OEEC
Secretary-General Time served Country of origin
1 Robert Marjolin 1948 – 1955 France France
2 René Sergent 1955 – 1960 France France
3 Thorkil Kristensen 1960 – September 1961 Denmark Denmark
Secretary-General of the OECD
Secretary-General Time served Country of origin
1 Thorkil Kristensen 30 September 1961 – 30 September 1969 Denmark Denmark
2 Emiel van Lennep 1 October 1969 – September 1984 Netherlands Netherlands
3 Jean-Claude Paye 1 October 1984 – 30 September 1994 France France
Staffan Sohlman (interim)[45][46] 1 October 1994 – November 1994 Sweden Sweden
3 Jean-Claude Paye[47] November 1994 – 30 May 1996 France France
4 Donald Johnston 1 June 1996 – 30 May 2006 Canada Canada
5 José Ángel Gurría 1 June 2006 – present Mexico Mexico

See source.

Committees[]

Representatives of member and observer countries meet in specialised committees on specific policy areas, such as economics, trade, science, employment, education or financial markets. There are about 200 committees, working groups and expert groups. Committees discuss policies and review progress in the given policy area.[48]

Special bodies and entities[49][]

Member countries[]

Current members[]

There are currently 36 members of the OECD[1] with one more country (Colombia) invited to join.[32]

Country Application Negotiations Invitation Membership[1] Geographic location Notes
 Australia 7 June 1971 Oceania
 Austria 29 September 1961 Europe OEEC member.[6]
 Belgium 13 September 1961 Europe OEEC member.[6]
 Canada 10 April 1961 North America
 Chile November 2003[50][51] 16 May 2007[52] 15 December 2009[53] 7 May 2010 South America
 Czech Republic January 1994[54] 8 June 1994[55] 24 November 1995[54] 21 December 1995 Europe Was a member of the rival Comecon from 1949 to 1991 as part of Czechoslovakia.
 Denmark 30 May 1961 Europe OEEC member.[6]
 Estonia 16 May 2007[52] 10 May 2010[56] 9 December 2010 Europe
 Finland 28 January 1969 Europe
 France 7 August 1961 Europe OEEC member.[6]
 Germany 27 September 1961 Europe Joined OEEC in 1949 (West Germany).[57] Previously represented by the Trizone.[6] East Germany was a member of the rival Comecon from 1950 until German reunification in 1990.
 Greece 27 September 1961 Europe OEEC member.[6]
 Hungary December 1993[58] 8 June 1994[55] 7 May 1996 Europe Was a member of the rival Comecon from 1949 to 1991.
 Iceland 5 June 1961 Europe OEEC member.[6]
 Ireland 17 August 1961 Europe OEEC member.[6]
 Israel 15 March 2004[59] 16 May 2007[52] 10 May 2010[56] 7 September 2010 Asia
 Italy 29 March 1962 Europe OEEC member.[6]
 Japan November 1962[60] July 1963[60] 28 April 1964 Asia
 South Korea 29 March 1995[61] 25 October 1996[62] 12 December 1996 Asia Officially Republic of Korea
 Latvia 29 May 2013[63] 11 May 2016[64] 1 July 2016[65] Europe
 Lithuania 9 April 2015[66] 31 May 2018 5 July 2018[67] Europe
 Luxembourg 7 December 1961 Europe OEEC member.[6]
 Mexico 14 April 1994[68] 18 May 1994 North America
 Netherlands 13 November 1961 Europe OEEC member.[6]
 New Zealand 29 May 1973 Oceania
 Norway 4 July 1961 Europe OEEC member.[6]
 Poland 1 February 1994[69] 8 June 1994[55] 11 July 1996[70] 22 November 1996 Europe Was a member of the rival Comecon from 1949 to 1991.
 Portugal 4 August 1961 Europe OEEC member.[6]
 Slovakia February 1994[71] 8 June 1994[55] July 2000[71] 14 December 2000 Europe Was a member of the rival Comecon from 1949 to 1991 as part of Czechoslovakia.
 Slovenia March 1996[72] 16 May 2007[52] 10 May 2010[56] 21 July 2010 Europe
 Spain 3 August 1961 Europe Joined OEEC in 1958.[73]
 Sweden 28 September 1961 Europe OEEC member.[6]
  Switzerland 28 September 1961 Europe OEEC member.[6]
 Turkey 2 August 1961 Asia OEEC member.[6]
 United Kingdom 2 May 1961 Europe OEEC member.[6]
 United States 12 April 1961 North America

The European Commission participates in the work of the OECD alongside the EU Member States.[74]

Former members[]

Countries signed accession agreement but not members yet[]

Countries currently in accession talks[]

Countries whose accession talks are suspended[]

Countries whose membership request is under consideration by the OECD Council[]

Indicators[]

The following table shows various data for OECD member states, including area, population, economic output and income inequality, as well as various composite indices, including human development, viability of the state, rule of law, perception of corruption, economic freedom, state of peace, freedom of the press and democratic level.

Country Area[79]
(km²)
2015
Population[79]
2015
GDP (PPP)[79]
(Intl. $)
2015
GDP (PPP)
per capita
[80]
(Intl. $)
2016
Income
inequality
[79]
2008-2015
(latest available)
HDI[81]
2017
FSI[82]
2018
RLI[83]
2016
CPI[84]
2017
IEF[85]
2017
GPI[86]
2016
WPFI[87]
2016
DI[88]
2016
 Australia 7,741,220 23,781,169 1,100,770,841,127 46,012 34.7 0.939 20.8 0.81 77 81.0 1.465 17.84 9.01
 Austria 83,879 8,611,088 426,990,592,028 50,552 30.5 0.908 26.2 0.83 75 72.3 1.278 13.18 8.41
 Belgium 30,530 11,285,721 514,744,610,151 46,429 28.1 0.916 29.7 0.79 75 67.8 1.528 14.18 7.77
 Canada 9,984,670 35,851,774 1,584,404,628,378 44,644 34.0 0.926 21.5 0.81 82 78.5 1.388 15.26 9.15
 Chile 756,096 17,948,141 419,386,742,725 23,194 47.7 0.843 40.7 0.68 67 76.5 1.635 19.23 7.78
 Czech Republic 78,870 10,551,219 356,145,431,593 34,749 25.9 0.888 39.0 0.75 57 73.3 1.360 16.66 7.82
 Denmark 42,922 5,676,002 272,858,449,286 49,029 28.5 0.929 19.8 0.89 88 75.1 1.246 8.89 9.20
 Estonia 45,230 1,311,998 38,107,539,022 29,743 34.6 0.871 43.0 0.79 71 79.1 1.732 14.31 7.85
 Finland 338,420 5,482,013 231,435,036,876 43,346 26.8 0.920 17.9 0.87 85 74.0 1.429 8.59 9.03
 France 549,087 66,808,385 2,729,181,995,185 41,343 32.3 0.901 32.2 0.72 70 63.3 1.829 23.83 7.92
 Germany 357,380 81,413,145 3,924,035,073,873 48,861 31.4 0.936 25.8 0.83 81 73.8 1.486 14.80 8.63
 Greece 131,960 10,823,732 285,446,924,293 26,779 35.8 0.870 55.3 0.60 48 55.0 2.044 30.35 7.23
 Hungary 93,030 9,844,686 260,422,734,757 26,701 30.9 0.838 50.2 0.57 45 65.8 1.534 28.17 6.72
 Iceland 103,000 330,823 15,615,202,511 50,104 25.6 0.935 20.3 N/A 77 74.4 1.192 15.30 9.50
 Ireland 70,280 4,640,703 318,161,081,932 71,472 31.9 0.938 20.7 N/A 74 76.7 1.433 12.40 9.15
 Israel 22,070 8,380,400 306,510,048,625 37,258 41.4 0.903 N/A N/A 62 69.7 2.656 32.58 7.85
 Italy 301,340 60,802,085 2,260,233,411,039 38,371 34.7 0.880 43.8 0.64 50 62.5 1.774 28.93 7.98
 Japan 377,962 126,958,472 5,175,259,447,160 42,203 32.1 0.909 34.5 0.78 73 69.6 1.395 28.67 7.99
 South Korea 100,280 50,617,045 1,753,732,543,473 36,533 31.6 0.903 35.7 0.73 54 74.3 1.858 28.58 7.92
 Latvia 64,490 1,978,440 49,238,809,758 25,587 35.1 0.847 44.9 N/A 58 74.8 1.680 17.38 7.31
 Lithuania 65,300 2,800,667 90,387,000,000 31,935 37.9 0.858 39.4 N/A 59 75.8 1.735 22.20 7.41
 Luxembourg 2,590 569,676 59,146,295,788 102,389 31.2 0.904 20.8 N/A 82 75.9 N/A 14.43 8.81
 Mexico 1,964,380 127,017,224 2,157,817,248,941 17,275 48.2 0.774 71.5 0.46 29 63.6 2.557 49.33 6.47
 Netherlands 41,540 16,936,520 840,000,049,665 50,539 28.6 0.931 26.2 0.86 82 75.8 1.541 8.76 8.80
 New Zealand 267,710 4,595,700 172,687,704,026 38,565 N/A 0.917 20.9 0.83 89 83.7 1.287 10.01 9.26
 Norway 385,178 5,195,921 322,230,084,771 58,790 26.8 0.953 18.3 0.88 85 74.0 1.500 8.79 9.93
 Poland 312,680 37,999,494 1,020,401,192,046 27,383 32.1 0.865 41.5 0.71 60 68.3 1.557 23.89 6.83
 Portugal 92,225 10,348,648 307,525,396,646 30,607 35.6 0.847 27.3 0.71 63 62.6 1.356 17.27 7.86
 Slovakia 49,035 5,424,050 162,341,127,270 30,460 26.1 0.855 42.5 N/A 50 65.7 1.603 13.26 7.29
 Slovenia 20,270 2,063,768 66,013,339,415 32,723 25.7 0.896 30.3 0.67 61 59.2 1.408 22.26 7.51
 Spain 505,940 46,418,269 1,621,190,833,560 36,305 36.0 0.891 41.4 0.70 57 63.6 1.604 19.92 8.30
 Sweden 447,420 9,798,871 468,941,444,842 48,905 27.2 0.933 20.8 0.86 84 74.9 1.461 12.33 9.39
  Switzerland 41,290 8,286,976 518,065,485,290 63,889 32.5 0.944 19.2 N/A 85 81.5 1.370 11.76 9.09
 Turkey 785,350 78,665,830 1,574,017,857,488 25,247 41.2 0.791 82.2 0.43 40 65.2 2.710 50.76 5.04
 United Kingdom 243,610 65,138,232 2,719,516,715,925 42,609 34.1 0.922 34.3 0.81 82 76.4 1.830 21.70 8.36
 United States 9,831,510 321,418,820 18,036,648,000,000 57,638 41.0 0.924 37.3 0.74 75 75.1 2.154 22.49 7.98
OECDb 36,328,744 1,285,775,707 52,159,610,919,464 41,870 0.887 0.74 68 71.5 1.644 19.89 8.15
Country Area
(km²)
2015
Population
2015
GDP (PPP)
(Intl. $)
2015
GDP (PPP)
per capita

(Intl. $)
2015
Income
inequality

2008-2015
(latest available)
HDI
2015
FSI
2018
RLI
2016
CPI
2017
IEF
2017
GPI
2016
WPFI
2016
DI
2016
  • a The FSI index supplies no figure for Israel per se, but rather provides an average (78.5) for "Israel (and West Bank)".
  • b OECD total used for indicators 1 through 3; OECD weighted average used for indicator 4; OECD unweighted average used for indicators 5 through 13.
Note: The colours indicate the country's global position in the respective indicator. For example, a green cell indicates that the country is ranked in the upper 25% of the list (including all countries with available data).
Highest quartile Upper-mid (3rd quartile) Lower-mid (2nd quartile) Lowest quartile

See also[]

Notes[]

  1. ^ "OECD Archives - OECD". www.oecd.org. 
  2. ^ Highly Commended certificate in the annual ALPSP/Charlesworth awards from the Association of Learned and Professional Society Publishers 2002; see article [1].
  3. ^ The yearbook's website is oecd.org/yearbook.

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