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]
Organisation for European Economic Co-operation[edit]
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]
According to Yanis Varoufakis, the OEEC can be seen as a continental planning commission established by the victorious United States following the successful model of their planning commissions of the New Deal. The economic philosophy these commission followed can be characterized as Keynesian. The lead in the organisation should be in French hands, with a strong integration of the Germans.[13]
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.[14]
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:
Austria
Belgium
Canada
Denmark
France
West Germany
Greece
Iceland
Ireland
Italy
Luxembourg
The Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
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.[15]
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).
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.[15][16] This programme also included a membership option for these countries.[16] As a result of this, Poland,[17] Hungary, the Czech Republic, and Slovakia, as well as Mexico and South Korea[18] became members of the OECD between 1994 and 2000.
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.[19] In 1996, Estonia, Latvia, and Lithuania signed a Joint Declaration expressing willingness to become full members of the OECD.[20]Slovenia also applied for membership that same year.[21] In 2005, Malta applied to join the organisation.[22] The EU is lobbying for admission of all EU member states.[23]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.[24] In September 2012, the government of Bulgaria confirmed it will apply for full membership before the OECD Secretariat.[25]
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.[15] 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.[26] Chile, Slovenia, Israel and Estonia all became members in 2010.[27] In March 2014, the OECD halted membership talks with Russia in response to its role in the 2014 Crimean crisis.[28][29]
In 2013, the OECD decided to open membership talks with Colombia and Latvia. In 2015, it opened talks with Costa Rica and Lithuania.[30] Latvia became a full member on 1 July 2016 and Lithuania on 5 July 2018.[31][32] 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.[33]
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).
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.
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:
The OECD Economic Outlook, published twice a year. It contains forecast and analysis of the economic situation of the OECD member countries.
The Main Economic Indicators, published monthly. It contains a large selection of timely statistical indicators.
The OECD Factbook, published yearly and available online, as an iPhone app and in print. The Factbook contains more than 100 economic, environmental and social indicators, each presented with a clear definition, tables and graphs. The Factbook mainly focuses on the statistics of its member countries and sometimes other major additional countries. It is freely accessible online and delivers all the data in Excel format via StatLinks.
The OECD Communications Outlook and the OECD Internet Economy Outlook (formerly the Information Technology Outlook), which rotate every year. They contain forecasts and analysis of the communications and information technology industries in OECD member countries and non-member economies.
In 2007 the OECD published Human Capital: How what you know shapes your life, the first book in the OECD Insights series. This series uses OECD analysis and data to introduce important social and economic issues to non-specialist readers. Other books in the series cover sustainable development, international trade and international migration.
All OECD books are available on the OECD iLibrary, the online bookshop or OECD Library & Archives.[n 1]
OECD Observer, an award-winning magazine[n 2] launched in 1962.[38] 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.[39] The online and mobile[40] editions 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.[41] An OECD Observer Crossword was introduced in Q2 2013.[42]
The OECD is known as a statistical agency, as it publishes comparable statistics on a wide number of subjects. In July 2014, the OECD publicly released its main statistical databases through the OECD Data Portal, an online platform that allows visitors to create custom charts based on official OECD indicators.[43][44]
OECD statistics are available in several forms:
as interactive charts on the OECD Data Portal,
as interactive databases on iLibrary together with key comparative and country tables,
as static files or dynamic database views on the OECD Statistics portal,
as StatLinks (in most OECD books, there is a URL that links to the underlying data).
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.
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.
The OECD's structure consists of three main elements:
The OECD member countries, each represented by a delegation led by an ambassador. Together, they form the OECD Council. Member countries act collectively through Council (and its Standing Committees) to provide direction and guidance to the work of Organisation.
The OECD Substantive Committees, one for each work area of the OECD, plus their variety of subsidiary bodies. Committee members are typically subject-matter experts from member and non-member governments. The Committees oversee all the work on each theme (publications, task forces, conferences, and so on). Committee members then relay the conclusions to their capitals.
The OECD Secretariat, led by the Secretary-General (currently Ángel Gurría), provides support to Standing and Substantive Committees. It is organised into Directorates, which include about 2,500 staff.
The main entrance to the OECD Conference Centre in Paris
Delegates from the member countries attend committees' and other meetings. Former Deputy Secretary-GeneralPierre 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.[45] 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.[46]
Noteworthy meetings include:
The yearly Ministerial Council Meeting, with the Ministers of Economy of all member countries and the candidates for enhanced engagement among the countries.
The annual OECD Forum, which brings together leaders from business, government, labour, civil society and international organisations. Held every year since June 2000, the OECD Forum takes the form of conferences and discussions, is open to public participation and is held in conjunction with the MCM.
Thematic Ministerial Meetings, held among Ministers of a given domain (i.e., all Ministers of Labour, all Ministers of Environment, etc.).
The bi-annual World Forum on Statistics, Knowledge and Policies, which does not usually take place in the OECD. This series of meetings has the ambition to measure and foster progress in societies.
OECD Eurasia Week which includes several high-level policy dialogue discussions to share best practices and experiences in addressing common development and economic challenges in Eurasia.[47]
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:
Centre for Entrepreneurship, SMEs, Regions and Cities
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.[51]
Costa Rica: In May 2013, the OECD declared its intention to open accession negotiations with Costa Rica in 2015.[79] On 9 April 2015, the OECD decided to open accession negotiations with Costa Rica.[80]
Countries whose accession talks are suspended[edit]
Russia: In May 2007, the OECD decided to open accession negotiations with Russia.[26] In March 2014, the OECD halted membership talks in response to Russia's role in that year's Crimean crisis.[28][29]
Countries whose membership request is under consideration by the OECD Council[edit]
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.
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).
^Highly Commended certificate in the annual ALPSP/Charlesworth awards from the Association of Learned and Professional Society Publishers 2002; see article [1].
^"OECD iLibrary (formerly: Source OECD)". Ontario Council of University Libraries. 28 November 2011. Archived from the original on 5 March 2016. Retrieved 29 January 2017. OECD iLibrary is OECD's Online Library for Books, Papers and Statistics and the gateway to OECD's analysis and data. It has replaced SourceOECD in July 2010.
The World Trade Organization (WTO) is an intergovernmental organization that is concerned with the regulation of international trade between nations. The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 124 nations on 15 April 1994, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. It is the largest international economic organization in the world.
Council of the Baltic Sea States
The Council of the Baltic Sea States (CBSS) is a regional intergovernmental organisation working on three priority areas: Regional Identity, Safe & Secure Region and Sustainable & Prosperous Region. These three priority areas aim to address the themes of environment, economic development, entrepreneurship, education, culture, civil security, children's rights and trafficking in human beings.
Group of 77
The Group of 77 (G77) at the United Nations is a coalition of 134 developing nations, designed to promote its members' collective economic interests and create an enhanced joint negotiating capacity in the United Nations. There were 77 founding members of the organization, but by November 2013 the organization had since expanded to 134 member countries. Since China participates in the G77 but does not consider itself to be a member, all official statements are issued in the name of The Group of 77 and China.
Nuclear Energy Agency
The Nuclear Energy Agency (NEA) is an intergovernmental agency that is organized under the Organisation for Economic Co-operation and Development (OECD). Originally formed on 1 February 1958 with the name European Nuclear Energy Agency (ENEA)—the United States participated as an Associate Member—the name was changed on 20 April 1972 to its current name after Japan became a member.
Bank of Latvia
The Bank of Latvia is the central bank of Latvia. It is one of the key public institutions and carries out economic functions as prescribed by law. It was established in 1922.
Eurasian Economic Community
The Eurasian Economic Community was a regional organisation between 2000 and 2014 which aimed for the economic integration of its member states.
The organisation originated from the Commonwealth of Independent States (CIS) on 29 March 1996, with the treaty on the establishment of the Eurasian Economic Community signed on 10 October 2000 in Kazakhstan's capital Astana by Presidents Alexander Lukashenko of Belarus, Nursultan Nazarbayev of Kazakhstan, Askar Akayev of Kyrgyzstan, Vladimir Putin of Russia, and Emomali Rahmon of Tajikistan. Uzbekistan joined the community on 7 October 2005, however later withdrew on 16 October 2008.
Central and Eastern Europe
Central and Eastern Europe, abbreviated CEE, is a term encompassing the countries in Central Europe, the Baltics, Eastern Europe, and Southeastern Europe (Balkans), usually meaning former communist states from the Eastern Bloc in Europe. Scholarly literature often uses the abbreviations CEE or CEEC for this term. The Organisation for Economic Co-operation and Development also uses the term "Central and Eastern European Countries (CEECs)" for a group comprising some of these countries.
List of countries by tax revenue to GDP ratio
This article lists countries alphabetically, with total tax revenue as a percentage of gross domestic product (GDP) for the listed countries. The tax percentage for each country listed in the source has been added to the chart.
Note: This list is sortable. Click the sort buttons at the top of the chart.
Development Assistance Committee
The Organisation for Economic Co-operation and Development's (OECD) Development Assistance Committee (DAC) is a forum to discuss issues surrounding aid, development and poverty reduction in developing countries. It describes itself as being the "venue and voice" of the world's major donor countries.
Enrico Giovannini
Enrico Giovannini is an Italian economist and statistician, member of the Club of Rome. Since 2002, he has been a full professor of economic statistics at the University of Rome Tor Vergata. He is Senior Fellow of the LUISS "School of European Political Economy", member of the “Commission Economique de la Nation” of the French Government, and co-chair of the "Independent Expert Advisory Group on the Data Revolution for Sustainable Development" established by the Secretary-General of the United Nations. He is also chair and member of several boards of Italian and international organisations. From April 2013 to February 2014 he was Minister of labour and social policies in the Italian government. From August 2009 to April 2013 he was President of the Italian Statistical Institute (Istat). From January 2001 to July 2009, he was Director of Statistics and Chief Statistician of the Organisation for Economic Co-operation and Development (OECD).
OECD Development Centre
The OECD Development Centre was established in 1961 as an independent platform for knowledge sharing and policy dialogue between Organisation for Economic Co-operation and Development member countries and developing economies, allowing these countries to interact on an equal footing.
Global Apprenticeship Network
The Global Apprenticeship Network (GAN) is a Swiss independent and neutral not-for-profit association based in Geneva. The GAN is a network of companies, employer organisations, associations and international organisations with the mission of promoting quality apprenticeships and the goal of creating job opportunities for youth and ensuring skills for business.
