OECD
What is OECD?
It is an international organization committed to promoting economic freedom and policy cooperation among developed nations.
The OECD members' Human Development Index (HDI) is relatively high, making them highly developed economies. Democratic nations that favour free-market economies make up the OECD members.
In 2017, the OECD member countries collectively contributed 2% of the world's nominal GDP and 42.8% of the world's GDP at purchasing power parity (PPP).
The OECD is regarded as a statistical organization because it releases comparable statistics on various topics. The OECD is a recognized U.N. Observer.
Historical Evolution of OECD
The OECD was founded in 1948 as the Organization for European Economic Cooperation (OEEC). The Marshall Plan for post-war reconstruction on the continent, financed mostly by the U.S., was governed by the Organisation for European Economic Cooperation (OEEC).
The OEEC was crucial to the European Economic Community's success (EEC).
To create a European Free Trade Area, the EEC changed into the European Union (E.U.). When the USA and Canada joined, the OEEC was renamed the OECD to reflect a larger membership.
Objectives of OECD:
- To promote economic stability while fostering economic progress, cooperation, and the battle against poverty.
- To ensure that the effects of social and economic development on the environment are always considered.
- Advocating for measures to enhance the global population's economic and social well-being.
- To create a platform for nations that claim to be dedicated to democracy and the market economy.
- To create a space where governments can collaborate to exchange knowledge and look for answers to problems they both face.
Functions of OECD:
- In order to promote economic stability on a worldwide level, the OECD is crucial. A model tax convention that the OECD publishes and updates is a guide for dividing taxation rights between nations.
- The OECD is responsible for disseminating economic studies, statistical databases, analyses, and global economic growth projections.
- It also examines how social concerns affect economic growth and offers suggestions for promoting economic growth worldwide. These suggestions also consider the environmental issues connected to economic development.
- The group works to end bribery and other financial crimes on a global scale.
- The OECD also keeps track of countries seen as uncooperative tax havens on a "blacklist."
- It also required work to stop profitable firms and those in the G-20 nations from avoiding taxes. Additionally, it motivates the G-20 nations to support tax reforms.
Composition and structure of OECD: Member Countries, Substantive Committees, and the OECD Secretariat.
OECD member countries: The application process to join the OECD is difficult. Various member committees must assess a nation.
As part of the process to restructure its economy and meet international standards in corporate governance, anti-corruption, and environmental protection, conformity with OECD instruments, benchmarks, and norms is checked.
- The 38 OECD members are mostly from Europe, including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Lithuania, Hungary, Iceland, Ireland, Italy, Latvia, Sweden, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Switzerland, and the United Kingdom.
- Five countries from the Americas are Canada, Chile, Colombia, Mexico, Costa Rica, and the United States.
- The four countries from the Pacific region include Korea, Australia, Japan, and New Zealand. The two Middle East countries in the group are Israel and Turkey.
- Strategic, not member, countries are Brazil, Indonesia, China, India, and South Africa. These countries are referred to as Key partners. They participate in regular OECD surveys, the OECD's daily work, and policy discussions in OECD bodies.
- The Secretary-General oversees the OECD Secretariat, which supports the Standing and Substantive Committees. Directorates make up its structure.
- While the OECD is debating the membership requests of Argentina, Brazil, Bulgaria, Croatia, Peru, and Romania, Colombia has been asked to join.
- The main office of the OECD is located at rue André Pascal in Paris, France. States with OECD offices include Berlin, Mexico City, Tokyo, Washington, D.C., and others.
Vital reports published by OECD include:
- OECD Economic Outlook
- OECD Communication Outlook
- OECD Internet Economy Outlook
India and OECD:
India joined the OECD Development Center as its 27th member. India and the OECD have been cooperating since 1997. Though India is not a member of the OECD, in 2007, the OECD Council at the Ministerial level adopted a resolution designating India, Brazil, China, Indonesia, and South Africa as Key Partners of the OECD to improve collaboration with them through a programme of intensified engagement. India is analyzed and included in OECD statistical databases as a Key Partner. Its participation in OECD committees and forums is encouraged so that Indian policymakers can use the organization's technical know-how and capacity for analysis.
In sectors including anti-corruption, corporate governance, economic policy, the environment, fiscal relations, responsible business conduct, steel, taxation, trade, and investment, OECD and India's cooperation is on the growth path.
In recognition of the contribution of the Indian GLP programme, India has been named the "Vice-Chair" of the Good Laboratory Practice (GLP) Working Group of the Organization for Economic Cooperation and Development (OECD).
