OECD
The Organisation for Economic Co-operation and Development (OECD; French: Organisation de coopération et de développement économiques, OCDE) is an intergovernmental organisation with 38 member countries,[1][4] founded in 1961 to stimulate economic progress and world trade. It is a forum whose member countries describe themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices, and coordinate domestic and international policies of its members.
Not to be confused with OSCE.Abbreviation
- OECD
- OCDE
16 April 1948 (as OEEC)
30 September 1961 (as OECD)
Château de la Muette
Paris, France
Australia
Austria
Belgium
Canada
Chile
Colombia
Costa Rica
Czechia
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Slovakia
Slovenia
South Korea
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
- English
- French
- Ulrik Vestergaard Knudsen
- Yoshiki Takeuchi
- Fabrizia Lapecorella
€383.4 million (2023)[3]
The majority of OECD members are high-income economies ranked as "very high" in the Human Development Index, and are regarded as developed countries. As of 2024 their collective population is 1.38 billion[5] people with an average life expectancy of 80 years and a median age of 40, against a global average of 30.[6] As of 2017, OECD Member countries collectively comprised 62.2% of global nominal GDP (USD 49.6 trillion)[7] and 42.8% of global GDP (Int$54.2 trillion) at purchasing power parity.[8] The OECD is an official United Nations observer.[9] OECD nations have strong social security systems; their average social welfare spending stood at roughly 21% of GDP.[10][11][12]
The OECD's headquarters are at the Château de la Muette in Paris, France, which housed its predecessor organization, the Organization for European Economic Co-operation.[13] The OECD is funded by contributions from member countries at varying rates and had a total budget of €338.3 million in 2023,[3] and is recognised as a highly influential publisher of mostly economic data through publications as well as annual evaluations and rankings of member countries.[14]
History[edit]
Organisation for European Economic Co-operation[edit]
The OECD is the successor organization to the Organisation for European Economic Co-operation (OEEC),[15] established in April 1948 among the European recipients of Marshall Plan aid for the reconstruction of Europe after World War II.[16][17][18] Only Western European states were members of the OEEC, whose primary function was the allocation of American aid. Its Secretaries-General[19] were the Frenchmen Robert Marjolin (1948–1955) and René Sergent (1955–1960). It was headquartered in the Château de la Muette in Paris.
Following the end of Marshall aid in 1952, the OEEC focused on economic issues.[15] Its coordinating role was challenged after the 1957 Rome Treaties establishing the European Economic Community and Euratom. The OEEC provided a framework for negotiations aimed at setting up a European Free Trade Area, to bring the EEC's Inner Six and other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency was set up in response to Euratom.
By this time, some leading countries felt that the OEEC had outlived its purpose but could be adapted to fulfil a more global mission, which proved to be a cumbersome task. Following several (occasionally unruly) meetings at the Hotel Majestic in Paris, which began in January 1960, a resolution was reached to create a body that would not only solve European and Atlantic economic issues, but also devise policies that could assist less developed countries. This reconstituted organisation would bring the US and Canada, who were already OEEC observers, on board as full members, and the OEEC would set to work straight away on convincing Japan to join the organisation.[20][21][22]
Founding[edit]
The Convention on the Organisation for Economic Co-operation and Development was signed on 14 December 1960, and the OECD officially superseded the OEEC in September 1961, consisting of the European founder countries of the OEEC, with the additions of the United States and Canada. Three countries, (Netherlands, Luxembourg, and Italy)—all OEEC members—ratified the OECD Convention after September 1961, but are nevertheless considered founding members. The official founding members are the following:
Objectives and issues[edit]
Taxation[edit]
The OECD sets the rules governing international taxation for multinationals through the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, a Model Tax Convention and country-by-country reporting rules.
Voting[edit]
OECD decisions are made through voting, which requires unanimity among all of those voting. Each member country has one vote.[82] However, dissenting members which do not wish to block a decision but merely to signal their disapproval can abstain from voting.[83] 22 of the OECD member countries are also EU member states.[84]
