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Oecd Information

The Organisation for Economic Co-operation and Development (OECD, French: Organisation de coopération et de développement économiques, OCDE) is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies of its members.

The OECD originated in 1948 as the Organisation for European Economic Co-operation (OEEC), led by Robert Marjolin of France, to help administer the Marshall Plan for the reconstruction of Europe after World War II. Later, its membership was extended to non-European states. In 1961, it was reformed into the Organisation for Economic Co-operation and Development by the Convention on the Organisation for Economic Co-operation and Development. Most OECD members are high-income economies with a "very high" Human Development Index (HDI) and are regarded as developed countries.

The OECD's headquarters are at the Château de la Muette in Paris, France.

Contents

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.[1] It started its operations on 16 April 1948. Since 1949, it has been headquartered in the Chateau de la Muette in Paris, France. After the Marshall Plan ended, the OEEC focused on economic issues.[2]

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.

Foundation of the OECD

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 The Convention was signed in December 1960 and the OECD officially superseded the OEEC in September 1961.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 the Republic of Austria, the Kingdom of Belgium, the Dominion of Canada, the Kingdom of Denmark, the French Republic, the Federal Republic of Germany, the Kingdom of Greece, the Republic of Iceland, the Republic of Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Kingdom of Norway, the Portuguese Republic, Spain, the Kingdom of Sweden, the Swiss Confederation, the Turkish Republic, the United Kingdom of Great Britain and Northern Ireland, and the United States of America. 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.[3]

More than just increasing its internal structure, OECD progressively created agencies: the OECD Development Centre (1961), International Energy Agency (IEA, 1974), and Financial Action Task Force on Money Laundering.

Unlike the organizations 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 and Eastern Europe

In 1989, after the political changes in Central and Eastern Europe, the OECD started to assist these countries 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 cooperation with Czechoslovakia, Hungary and Poland.[3][4] This programme also included a membership option for these countries.[4] As a result of this, in 1994–2000 Poland, Hungary, Czech Republic and Slovakia as well as Mexico and the Republic of Korea became members of the organisation.

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.[5] In 1996, Estonia, Latvia, and Lithuania signed a Joint Declaration expressing willingness to become full members of the OECD.[6] Slovenia also applied for membership that same year.[7] In 2005 Malta applied to join the organization.[8]

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.[3] 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.[9] Chile, Slovenia, Israel and Estonia all became members in 2010.[10][11]

In 2011 President Juan Manuel Santos of Colombia express the country's willingness to join the organization during a speech at the OECD headquarters.[12]

Objectives and activities

One of a number of posters created by the Economic Cooperation Administration to promote the Marshall Plan in Europe

Aim

The OECD defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies.[13] Its mandate covers economic, environmental, and social issues. It acts by peer pressure to improve policy and implement "soft law"—non-binding instruments that can occasionally lead to binding treaties. In this work, the OECD cooperates with businesses, trade unions and other representatives of civil society. Collaboration at the OECD regarding taxation, for example, has fostered the growth of a global web of bilateral tax treaties.

The OECD promotes policies designed:

International investments and multinational enterprises

Between 1995 and 1998, the OECD designed the Multilateral Agreement on Investment, which was abandoned because of a widespread criticism from civil society groups and developing countries. In 1976, the OECD adopted the Declaration on International Investment and Multinational Enterprises, which was rewritten and annexed by the OECD Guidelines for Multinational Enterprises in 2000.

Among other areas, the OECD has taken a role in co-ordinating international action on corruption and bribery, creating the OECD Anti-Bribery Convention, which came into effect in February 1999. It has been ratified by thirty-eight countries.[14]

The OECD has also constituted an anti-spam task force, which submitted a detailed report, with several background papers on spam problems in developing countries, best practices for ISPs, e-mail marketers, etc., appended. It works on the information economy[15] and the future of the Internet economy.[16]

PISA

Further information: Programme for International Student Assessment

The OECD publishes the Programme for International Student Assessment (PISA), which is an assessment that allows for a comparison of educational performances between countries.

Taxation

See also: FATF Blacklist

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).

Since 1998, the OECD has led a charge against harmful tax practices, principally targeting the activities of tax havens (while principally accepting the policies of its member countries, which would tend to encourage tax competition). These efforts have been met with mixed reaction: The primary objection is the sanctity of tax policy as a matter of sovereign entitlement.[17] The OECD maintains a 'blacklist' of countries it considers uncooperative in the drive for transparency of tax affairs and the effective exchange of information, officially called "The List of Uncooperative Tax Havens".[18] In May 2009, all remaining countries were removed from the list.[19]

On 22 October 2008, at an OECD meeting in Paris, 17 countries led by France and Germany decided to draw up a new blacklist of tax havens. The OECD has been asked to investigate around 40 new tax havens in the world where undeclared revenue is hidden and that host many of the non-regulated hedge funds that have come under fire during the 2008 financial crisis. Germany, France, and other countries called on the OECD to specifically add Switzerland to a blacklist of countries that encourage tax fraud.[20]

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: www.oecd.org/libraryandarchives.

Books

The OECD releases between 300 and 500 books each year. Most books are published in English and French. The OECD flagship titles include:

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

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

Delegates from the member countries attend committees' and other meetings. Former Deputy-Secretary General Pierre Vinde 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.[21] This ratio is unique among inter-governmental organisations. In other words, the OECD is more a persistent forum or network of officials and experts than an administration.

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:

The work of the secretariat is financed from the OECD's annual budget, currently around US$510 million or €342.9 million). The budget is funded by the member countries based on a formula related to the size of each member's gross national product.[22] The largest contributor is the United States, which contributes about one quarter of the budget, followed by Japan with 16%, Germany with 9% and the U.K. and France with 7%. The OECD governing council sets the budget and scope of work on a two-yearly basis.

As an international organisation the terms of employment of the OECD Secretariat staff are not governed by the laws of the country in which their offices are located. Agreements with the host country safeguard the organisation's impartiality with regard to the host and member countries. Hiring and firing practices, working hours and environment, holiday time, pension plans, health insurance and life insurance, salaries, expatriation benefits and general conditions of employment are managed according to rules and regulations associated with the OECD. In order to maintain working conditions that are similar to similarly structured organisations, the OECD participates as an independent organisation in the system of co-ordinated European organisations, whose other members include NATO, the Western European Union and the European Patent Organisation.

Secretaries-General

Committees

Representatives of the 34 OECD member countries and a number of 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.[23]

Special bodies

Member countries

Current members

There are currently 34 members of the OECD.

Country Membership[24] Geographic location Notes
Australia 01971-06-077 June 1971 Oceania
Austria 01961-09-2929 September 1961 Europe OEEC member.[25]
Belgium 01961-09-1313 September 1961 Europe OEEC member.[25]
Canada 01961-04-1010 April 1961 North America
Chile 02010-05-077 May 2010 South America
Czech Republic 01995-12-2121 December 1995 Europe
Denmark 01961-05-3030 May 1961 Europe OEEC member.[25]
Estonia 02010-12-099 December 2010 Europe
Finland 01969-01-2828 January 1969 Europe
France 01961-08-077 August 1961 Europe OEEC member.[25]
Germany 01961-09-2727 September 1961 Europe Joined OEEC in 1949 (West Germany).[26] Previously represented by the Trizone.[25]
Greece 01961-09-2727 September 1961 Europe OEEC member.[25]
Hungary 01996-05-077 May 1996 Europe
Iceland 01961-06-055 June 1961 Europe OEEC member.[25]
Ireland 01961-08-1717 August 1961 Europe OEEC member.[25]
Israel 02010-09-077 September 2010 Asia
Italy 01962-03-2929 March 1962 Europe OEEC member.[25]
Japan 01964-04-2828 April 1964 Asia
South Korea 01996-12-1212 December 1996 Asia
Luxembourg 01961-12-077 December 1961 Europe OEEC member.[25]
Mexico 01994-05-1818 May 1994 North America
Netherlands 01961-11-1313 November 1961 Europe OEEC member.[25]
New Zealand 01973-05-2929 May 1973 Oceania
Norway 01961-07-044 July 1961 Europe OEEC member.[25]
Poland 01996-11-2222 November 1996 Europe
Portugal 01961-08-044 August 1961 Europe OEEC member.[25]
Slovakia 02000-12-1414 December 2000 Europe
Slovenia 02010-07-2121 July 2010 Europe
Spain 01961-08-033 August 1961 Europe Joined OEEC in 1958.[27]
Sweden 01961-09-2828 September 1961 Europe OEEC member.[25]
Switzerland 01961-09-2828 September 1961 Europe OEEC member.[25]
Turkey 01961-08-022 August 1961 Eurasia OEEC member.[25]
United Kingdom 01961-05-022 May 1961 Europe OEEC member.[25]
United States 01961-04-1212 April 1961 North America

The European Commission participates in the work of the OECD alongside the EU Member States.[28]

Former members

Invited countries

Relations with non-members

OECD members Accession candidate countries Enhanced engagement countries

Currently, 25 non-members participate as regular observers or full participants in OECD Committees. About 50 non-members are engaged in OECD working parties, schemes or programmes. The OECD conducts a policy dialogue and capacity building activities with non-members (Country Programmes, Regional Approaches and Global Forums) to share their views on best policy practices and to bear on OECD's policy debate. The OECD's Centre for Co-operation with Non-Members develops and oversees the strategic orientations of the relations with non-members.

On 16 May 2007, the OECD Ministerial Council decided to strengthen OECD's co-operation with Brazil, China, India, Indonesia and South Africa, through a process of enhanced engagement.[9]

The OECD explores the possibilities for enhanced co-operation with selected countries and regions of strategic interest to the OECD, giving priority to South East Asia with a view to identifying countries for possible membership.

Criticism

See also: OECD controversy

The OECD has been criticised by several civil society groups and developing countries. The main criticism has been the narrowness of the OECD because of its limited membership to a select few rich nations.[29] In 1997–1998, the draft Multilateral Agreement on Investment was heavily criticized by several non-governmental organisations and developing countries. Many critics argued that the agreement would threaten protection of human rights, labor and environmental standards, and the least developed countries. A particular concern was that the MAI would result in a 'race to the bottom' among countries willing to lower their labor and environmental standards to attract foreign investment. Also the OECD's actions against harmful tax practices has raised criticism. The primary objection is the sanctity of tax policy as a matter of sovereign entitlement.[17]

Indicators

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

Country Area[30] (km²) Population[30] 2010 GDP (PPP)[30] (Intl. $) 2010 GDP (PPP) per capita[30] (Intl. $) 2010 HDI[31] 2011 FSI[32] 2011 CPI[33] 2011 IEF[34] 2011 GPI[35] 2011 WPFI[36] 2011/2012 DI[37] 2011 Income inequality[30] 1993-2009 (latest available)
Australia 7,741,220 22,299,000 850,921,670,835 38,160 0.929 28.1 8.8 82.5 1.455 4.00 9.22 35.2
Austria 83,870 8,390,000 335,651,908,177 40,006 0.885 27.3 7.8 71.9 1.337 -8.00 8.49 29.2
Belgium 30,530 10,896,000 410,028,052,709 37,631 0.886 34.1 7.5 70.2 1.413 -2.00 8.05 33.0
Canada 9,984,670 34,126,000 1,332,626,009,839 39,050 0.908 27.7 8.7 80.8 1.355 -5.67 9.08 32.6
Chile 756,090 17,113,688 270,041,323,664 15,779 0.805 40.7 7.2 77.4 1.710 29.00 7.54 52.1
Czech Republic 78,870 10,520,000 257,928,339,127 24,518 0.865 42.4 4.4 70.4 1.320 -5.00 8.19 25.8
Denmark 43,090 5,547,000 222,781,886,776 40,163 0.895 23.8 9.4 78.6 1.289 -5.67 9.52 24.7
Estonia 45,230 1,340,000 27,688,998,902 20,663 0.835 49.3 6.4 75.2 1.798 -9.00 7.61 36.0
Finland 338,420 5,364,000 195,638,761,225 36,473 0.882 19.7 9.4 74.0 1.352 -10.00 9.06 26.9
France 549,190 64,895,000 2,214,424,844,973 34,123 0.884 34.0 7.0 64.6 1.697 9.50 7.77 32.7
Germany 357,120 81,777,000 3,058,645,251,108 37,402 0.905 33.9 8.0 71.8 1.416 -3.00 8.34 28.3
Greece 131,960 11,316,000 321,469,098,066 28,408 0.861 47.4 3.4 60.3 1.947 24.00 7.65 34.3
Hungary 93,030 10,000,000 205,454,014,567 20,545 0.816 48.7 4.6 66.6 1.495 10.00 7.04 31.2
Iceland 103,000 318,000 11,334,228,026 35,642 0.898 30.1 8.3 68.2 1.148 -7.00 9.65 N/A
Ireland 70,280 4,475,000 181,077,867,866 40,464 0.908 25.3 7.5 78.7 1.370 -4.00 8.56 34.3
Israel 22,070 7,624,000 217,843,073,595 28,573 0.888 N/Aa 5.8 68.5 2.901 31.25 7.53 39.2
Italy 301,340 60,483,000 1,932,684,377,298 31,954 0.874 45.8 3.9 60.3 1.775 19.67 7.74 36.0
Japan 377,940 127,451,000 4,299,287,787,846 33,733 0.901 31.0 8.0 72.8 1.287 -1.00 8.08 24.9
Korea, South South Korea 99,900 48,875,000 1,422,314,851,971 29,101 0.897 38.8 5.4 69.8 1.829 12.67 8.06 N/A
Luxembourg 2,590 507,000 43,665,012,298 86,124 0.867 26.1 8.5 76.2 1.341c -7.00 8.88 30.8
Mexico 1,964,380 113,423,000 1,651,879,443,740 14,564 0.770 75.1 3.0 67.8 2.362 72.67 6.93 48.3
Netherlands 41,540 16,616,000 700,605,399,392 42,165 0.910 28.3 8.9 74.7 1.628 -9.00 8.99 30.9
New Zealand 267,710 4,368,000 129,006,762,969 29,535 0.908 24.8 9.5 82.3 1.279 -5.33 9.26 36.2
Norway 323,780 4,889,000 279,801,821,220 57,231 0.943 20.4 9.0 70.3 1.356 -10.00 9.80 25.8
Poland 312,680 38,184,000 759,271,825,466 19,885 0.813 46.8 5.5 64.1 1.545 -0.67 7.12 34.1
Portugal 92,090 10,638,000 270,370,552,557 25,416 0.809 32.3 6.1 64.0 1.453 5.33 7.81 38.5
Slovakia 49,040 5,430,000 126,534,384,733 23,303 0.834 47.1 4.0 69.5 1.576 0.00 7.35 N/A
Slovenia 20,270 2,049,000 55,169,755,734 26,925 0.884 35.5 5.9 64.6 1.358 9.14 7.76 31.2
Spain 505,370 46,071,000 1,484,884,850,942 32,230 0.878 43.1 6.2 70.2 1.641 9.75 8.02 34.7
Sweden 450,300 9,378,000 365,968,702,539 39,024 0.904 22.8 9.3 71.9 1.401 -5.50 9.50 25.0
Switzerland 41,280 7,826,000 363,005,021,856 46,384 0.903 23.2 8.8 81.9 1.421 -6.20 9.09 33.7
Turkey 783,560 72,752,000 1,141,250,450,911 15,687 0.699 74.9 4.2 64.2 2.411 70.00 5.72 39.0
United Kingdom 243,610 62,232,000 2,220,823,584,121 35,686 0.863 34.1 7.8 74.5 1.631 2.00 8.16 36.0
United States 9,831,510 309,349,000 14,586,736,313,339 47,153 0.910 34.8 7.1 77.8 2.063 14.00 8.11 40.8
zzzOECDb 36,137,530 1,236,521,688 41,946,816,228,388 33,923 0.871 36.3 6.9 71.7 1.607 6.44 8.23 33.6
Country Area (km²) Population 2010 GDP (PPP) (Intl. $) 2010 GDP (PPP) per capita (Intl. $) 2010 HDI 2011 FSI 2011 CPI 2011 IEF 2011 GPI 2011 WPFI 2011/2012 DI 2011 Income inequality 1993-2009 (latest available)

a The FSI index supplies no figure for Israel, but rather supplies a figure (84.4) for "Israel/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 12. c Data are for 2010. Note: The colors 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 fourth
Upper-mid (2nd to 3rd quartile)
Lower-mid (1st to 2nd quartile)
Lowest fourth

See also

References

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