OECD

Organisation for Economic Co-operation and

Development (OECD)
• The OECD, or Organization for Economic Cooperation and Development, is an international
organization that promotes policy coordination and economic freedom among developed nations.
• The OECD was derived from the Organization for European Economic Cooperation (OEEC) that
was established in 1948 to monitor American and Canadian contributions under the Marshall Plan.
• Headquartered in Paris, France, the OECD was formed in 1961 and included members from
democratic states such as the United States, countries in Western Europe, Japan, Canada, Australia,
and New Zealand. The organization expanded in the 1990s to include Mexico, South Korea, and
Eastern European nations. In recent years, India, Brazil, China, and Indonesia also made
contributions to the work agenda of the OECD.
 Organisation for Economic Co-operation and
Development (OECD)
• Aims of OECD
• With these shared values, what is the OECD trying to achieve? The aims are clearly
stated in the OECD Convention. It aims to promote policies to make the world richer,
freer, fairer, and more stable, not only for members but also for non-member countries.
Simply put, promoting better policies for better lives is what the OECD is aiming for.
• The OECD’s Mission
• The mission of the OECD is to promote policies that will improve the economic and 
social welfare of people in developed nations.
 OECD’s Objectives
The main purpose of the OECD is to improve the global economy and promote world trade
. It provides an outlet for the governments of different countries to work together to find
solutions to common problems.  
The OECD’s main focus is to help governments around the world achieve the following:
• Improve confidence in markets and the institutions that help them function.
• Obtain healthy public finances to achieve future sustainable economic growth.
• Achieve growth through innovation, environmentally friendly strategies, and the 
sustainability of developing economies.
• Provide resources for people to develop the skills they need to be productive.
OECD’s Organizational Structure
 Structure of OECD
1) OECD Council:
• The OECD Council is the organisation’s overarching decision-making body. It is
composed of ambassadors from Member countries and the European Commission, and is
chaired by the Secretary-General.
• It meets regularly to discuss key work of the Organisation, share concerns and take
decisions by consensus.
• Once a year, the OECD Council meets for the Ministerial Council Meeting, which
brings together heads of government, economy, trade and foreign ministers from Member
countries to monitor and set priorities for our work, discuss the global economic and trade
context, and delve further into issues such as the budget or the accession
 Structure of OECD
2)Committees:
• The OECD works through more than 300 committees, expert and working groups
 which cover almost all areas of policy making. Our committees propose solutions,
assess data and policy successes, and review policy actions among Member countries.
• They cover the same issue areas as government ministries, such as education, finance,
trade, environment, development, and liaise with country-level experts. Committee
participants come from Member and partner countries, and represent state bodies,
academia, business and civil society. Around 40 000 people take part in these
meetings every year. Some discussions can evolve into negotiations in which all
OECD countries define and follow common global rules.
 Structure of OECD
2)Committees:
• The OECD works through more than 300 committees, expert and working groups
 which cover almost all areas of policy making. Our committees propose solutions,
assess data and policy successes, and review policy actions among Member countries.
• They cover the same issue areas as government ministries, such as education, finance,
trade, environment, development, and liaise with country-level experts. Committee
participants come from Member and partner countries, and represent state bodies,
academia, business and civil society. Around 40 000 people take part in these
meetings every year. Some discussions can evolve into negotiations in which all
OECD countries define and follow common global rules.
 Structure of OECD
3)Secretariat
• The OECD Secretariat carries out the work of the OECD. It is led by the Secretary-
General and composed of directorates and divisions that work with policy makers and
shapers in each country, providing insights and expertise to help guide policy making
based on evidence in close coordination with committees. Directorates report to the
Secretary-General.
• The 3300 employees of the Secretariat include economists, lawyers, scientists, political
analysts, sociologists, digital experts, statisticians and communication professionals. In
addition to its Headquarters in Paris, France, the OECD also has centres in Berlin,
Mexico, Tokyo and Washington D.C., which are part of the OECD’s public affairs and
communications team.
 Functions of OECD
1. Promoting health and safety
2. Promoting local and regional development
3. Combating international tax avoidance
4. Accelerating development
5. Fighting corruption
6. Guiding economic reforms of nations
7. Improving educational system
 Functions of OECD
• The OECD uses information on various topics to fight poverty, help
governments prosper, and prevent financial instability. The organization
monitors the economies of member and non-member nations, and the
Secretariat collects and analyzes information on different aspects of
society.
• The committee discusses relevant policies to be implemented using the
information, and the council makes the final decisions on the policies. The
governments of the different states execute the recommended strategies.
 Functions of OECD
1. Peer Reviews
• There are processes where individual member countries’ performance is supervised by the other
members of the OECD.
• This is a core function of the organization and helps them create more effective policies. It can also
help governments gain support for the implementation of difficult policies in their home country.
• An example of a peer review is when the UK was told to keep foreign aid at a commendable 0.7%
level. It was done to ensure that the extra money is spent in the most efficient way possible. In fact,
the peer-review process has often been referred to as “international group therapy,” where countries
can openly discuss their problems and look to peers for objective guidance, advice, and support of the
OECD.The OECD applies peer pressure through another method, commonly referred to as soft law.
Soft law is a formal international promise among countries to aspire to higher standards.
 Functions of OECD
 2. Standards and Recommendations
• At the committee level, member countries of the OECD discuss general
policies and rules for international cooperation.
• There are formal agreements on issues such as exports, imports,
investments, and combating bribery.
• They also set the standards that all countries need to follow regarding the
tax system and treaties, and provide recommendations on 
environmental practices and corporate regulations.
 Functions of OECD
3. Publications
The OECD publishes articles on economic outlooks, statistics, and a general overview.
• OECD Economic Outlook – Provides a forecast for member and non-member nations
• OECD Factbook – Serves as a guide-book for economies that are implementing new
policies
• Going for Growth – A comparison of countries, based on national performance 
The peer review, standards, and agreements, and publications help the OECD achieve
economic growth for nations while also providing a base for the implementation of future
policies.