Organisation for Economic Co-operation and Development

Organisation for Economic Co-operation and Development

Overview
The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation
International organization
An intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization composed primarily of sovereign states , or of other intergovernmental organizations...

 of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

 and the market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

, 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
Robert Marjolin
Robert Marjolin was a French economist and politician involved in the formation of the European Economic Community.-Early life and education:...

 of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, to help administer the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 for the reconstruction of Europe after World War II.
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Encyclopedia
The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation
International organization
An intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization composed primarily of sovereign states , or of other intergovernmental organizations...

 of 34 countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

 and the market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

, 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
Robert Marjolin
Robert Marjolin was a French economist and politician involved in the formation of the European Economic Community.-Early life and education:...

 of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, to help administer the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 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
Convention on the Organisation for Economic Co-operation and Development
The Convention on the Organisation for Economic Co-operation and Development is the 1960 treaty that transitioned the Organisation for European Economic Co-operation into the Organisation for Economic Co-operation and Development...

. Most OECD members are high-income economies with a "very high" Human Development Index (HDI
Human Development Index
The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries...

) and are regarded as developed countries.

The OECD's headquarters are at the Château de la Muette
Château de la Muette
The Château de la Muette is a château located on the edge of the Bois de Boulogne in Paris, France, near the Porte de la Muette.Three châteaux have been located on the site since a hunting lodge was transformed into the first château for Princess Marguerite de Valois, favorite daughter of King...

in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

, France.

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
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 for the reconstruction of Europe after World War II. It started its operations on 16 April 1948. Since 1949, it has been headquartered in the Chateau de la Muette
Château de la Muette
The Château de la Muette is a château located on the edge of the Bois de Boulogne in Paris, France, near the Porte de la Muette.Three châteaux have been located on the site since a hunting lodge was transformed into the first château for Princess Marguerite de Valois, favorite daughter of King...

 in Paris, France. After the Marshall Plan ended, the OEEC focused on economic questions.

In the 1950s the OEEC provided the framework for negotiations aimed at determining conditions for setting up a European Free Trade Area
European Free Trade Area
At present, there are three multi-lateral free trade areas in Europe, plus the European Union which has a single market, and one former-FTA in recent history...

, to bring the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...

 of the six and the other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency
Nuclear Energy Agency
The Nuclear Energy Agency is an intergovernmental multinational agency that is organized under the Organisation for Economic Co-operation and Development...

 was set up under the OEEC.

Foundation of the OECD


Following the 1957 Rome Treaties to launch the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...

, the Convention on the Organisation for Economic Co-operation and Development
Convention on the Organisation for Economic Co-operation and Development
The Convention on the Organisation for Economic Co-operation and Development is the 1960 treaty that transitioned the Organisation for European Economic Co-operation into 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 Finland, Australia, and New Zealand also joined the organisation. Yugoslavia
Yugoslavia
Yugoslavia refers to three political entities that existed successively on the western part of the Balkans during most of the 20th century....

 had observer status in the organisation starting with the establishment of the OECD until its dissolution.

More than just increasing its internal structure, OECD progressively created agencies: the OECD Development Centre (1961), International Energy Agency
International Energy Agency
The International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...

 (IEA, 1974), and Financial Action Task Force on Money Laundering
Financial Action Task Force on Money Laundering
The Financial Action Task Force , also known by its French name, Groupe d'action financière , is an intergovernmental organization founded in 1989 on the initiative of the G7. The purpose of the FATF is to develop policies to combat money laundering and terrorist financing...

.

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
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...

, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

 and Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

. This programme also included a membership option for these countries. 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 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. As a result of this work, on 16 May 2007, the OECD Ministerial Council decided to open accession discussions with Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

, Estonia
Estonia
Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

, the Russian Federation and Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...

 and to strengthen co-operation with Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

 and South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

 through a process of enhanced engagement. On May 7, 2010, Chile became the organization's 31st member. On July 21, 2010, Slovenia became the 32nd member. On September 7, 2010, Israel became the 33rd member. On December 9, 2010, Estonia became the 34th member.

Objectives and activities



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. Its mandate covers economic, environmental, and social issues. It acts by peer pressure to improve policy and implement "soft law
Soft law
The term "soft law" refers to quasi-legal instruments which do not have any legally binding force, or whose binding force is somewhat "weaker" than the binding force of traditionallaw, often contrasted with soft law by being referred to as "hard 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
Tax treaty
Many countries have agreed with other countries in treaties to mitigate the effects of double taxation . Tax treaties may cover income taxes, inheritance taxes, value added taxes, or other taxes...

.

The OECD promotes policies designed:
  • to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy;
  • to contribute to sound economic expansion in Member as well as nonmember countries in the process of economic development; and
  • to contribute to the expansion of world trade on a multilateral, nondiscriminatory basis in accordance with international obligations.

International investments and multinational enterprises


Between 1995 and 1998, the OECD designed the Multilateral Agreement on Investment
Multilateral Agreement on Investment
The Multilateral Agreement on Investment was a draft agreement negotiated between members of the Organisation for Economic Co-operation and Development in 1995–1998. Its ostensible purpose was to develop multilateral rules that would ensure international investment was governed in a more...

, which was abandoned because of a widespread criticism from civil society
Civil society
Civil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...

 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
OECD Guidelines for Multinational Enterprises
OECD Guidelines for Multinational Enterprises are annex to the OECD Declaration on International Investment and Multinational Enterprises. They are recommendations providing voluntary principles and standards for responsible business conduct for multinational corporations operating in or from...

 in 2000.

Among other areas, the OECD has taken a role in co-ordinating international action on corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

 and bribery
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...

, creating the OECD Anti-Bribery Convention
OECD Anti-Bribery Convention
The OECD Anti-Bribery Convention is a convention of the OECD aimed at reducing corruption in developing countries by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries...

, which came into effect in February 1999. It has been ratified by thirty-eight countries.

The OECD has also constituted an anti-spam
Spam (electronic)
Spam is the use of electronic messaging systems to send unsolicited bulk messages indiscriminately...

 task force, which submitted a detailed report, with several background papers on spam problems in developing countries, best practices for ISPs
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...

, e-mail marketers, etc., appended. It works on the information economy and the future of the Internet economy.

PISA


The OECD publishes the Programme for International Student Assessment
Programme for International Student Assessment
The Programme for International Student Assessment is a worldwide evaluation in OECD member countries of 15-year-old school pupils' scholastic performance, performed first in 2000 and repeated every three years...

 (PISA) which is an assessment that allows for a comparison of educational performances between countries.

Taxation



The OECD publishes and updates a model tax convention which serves as a template for bilateral negotiations regarding tax coordination and cooperation. This model is accompanied by a set of commentaries which reflect OECD-level interpretation of the content of the model convention provisions. This model generally 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 haven
Tax haven
A tax haven is a state or a country or territory where certain taxes are levied at a low rate or not at all while offering due process, good governance and a low corruption rate....

s (while principally accepting the policies of its member countries which would tend to encourage tax competition
Tax competition
Tax competition, a form of regulatory competition, exists when governments are encouraged to lower fiscal burdens to either encourage the inflow of productive resources or discourage the exodus of those resources...

). These efforts have been met with mixed reaction: the primary objection is the sanctity of tax policy as a matter of sovereign entitlement. 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". In May 2009, all remaining countries were removed from the list.

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 which 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 which encourage tax fraud.

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.

Books


The OECD releases between 300 and 500 books each year. Most books are published in English and French. The OECD flagship 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. It is freely accessible online and delivers all the data in Excel format via Statlinks.
  • OECD Observer, an award-winning magazine with six issues a year. News, analysis, commentaries and data on global economic, social and environmental challenges. Contains book reviews and special section listing the latest OECD books, plus ordering information.
  • The OECD Communications Outlook and OECD 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 iLibrary and the online bookshop.

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:
  • 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
    Uniform Resource Locator
    In computing, a uniform resource locator or universal resource locator is a specific character string that constitutes a reference to an Internet resource....

     which links to the underlying data).

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
OECD Guidelines for the Testing of Chemicals
OECD Guidelines for the Testing of Chemicals are a set of internationally-accepted specifications for the testing of chemicals decided on by the Organisation for Economic Co-operation and Development . They were first published in 1981...

, a continually updated document which 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:
  • 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 Organization.
  • 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 Angel Gurria), provides support to Standing and Substantive Committees. It is organized in Directorates, which include about 2,500 staff.

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. 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:
  • 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. This takes the form of conferences and discussions and is open to public participation.
  • Thematic Ministerial Meetings, held among Ministers of a given domain (ie. 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.

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
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

, technology, tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

ation and other areas.

The secretariat is organised in Directorates:
  • Centre for Entrepreneurship, SMEs and Local Development
  • Centre for Tax Policy and Administration
  • Development Co-operation Directorate
  • Directorate for Education
  • Directorate for Employment, Labour and Social Affairs
  • Directorate for Financial and Enterprise Affairs
  • Directorate for Science, Technology and Industry
  • Economics Department
  • Environment Directorate
  • Public Governance and Territorial Development Directorate
  • Statistics Directorate
  • Trade and Agriculture Directorate
  • General Secretariat
  • Executive Directorate
  • Public Affairs and Communication Directorate


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. 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
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...

 and firing
Firing
Dismissal is the termination of employment by an employer against the will of the employee. Though such a decision can be made by an employer for a variety of reasons, ranging from an economic downturn to performance-related problems on the part of the employee, being fired has a strong stigma in...

 practices, working hours and environment, holiday
Holiday
A Holiday is a day designated as having special significance for which individuals, a government, or a religious group have deemed that observance is warranted. It is generally an official or unofficial observance of religious, national, or cultural significance, often accompanied by celebrations...

 time, pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...

 plans, health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...

 and life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...

, 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 which are similar to similarly structured organisations, the OECD participates as an independent organisation in the system of co-ordinated European organisations
Co-ordinated organisations
The expression coordinated organizations refers to several European intergovernmental organizations that have a common system of remuneration and pension. They are independent but have a common method of adjusting their salary scales...

, whose other members include NATO, the Western European Union
Western European Union
The Western European Union was an international organisation tasked with implementing the Modified Treaty of Brussels , an amended version of the original 1948 Treaty of Brussels...

 and the European Patent Organisation
European Patent Organisation
The European Patent Organisation is a public international organisation created in 1977 by its contracting states to grant patents in Europe under the European Patent Convention of 1973...

.

Secretaries-General

  • 1948–1955:   Robert Marjolin
    Robert Marjolin
    Robert Marjolin was a French economist and politician involved in the formation of the European Economic Community.-Early life and education:...

  • 1955–1960:   René Sergent
  • 1960–1969:   Thorkil Kristensen
    Thorkil Kristensen
    Thorkil Kristensen , was a Danish politician, finance minister, professor in national economy and futurist.He was born a son of a farmer in Fløjstrup close to Vejle, Denmark....

  • 1969–1984:   Emiel van Lennep
  • 1984–1994:   Jean-Claude Paye
  • 1994:   Staffan Sohlman (interim)
  • 1994–1996:   Jean-Claude Paye
  • 1996–2006:   Don Johnston
    Don Johnston
    The Honourable Donald James Johnston, PC, OC, QC is a former Canadian politician, lawyer, and was Secretary-General of the Organisation for Economic Co-operation and Development from 1996 to 2006.-Early life:...

  • 2006– :   José Ángel Gurría
    José Ángel Gurría
    José Ángel Gurría Treviño is a Mexican economist and diplomat. He is the current secretary general of the Organisation for Economic Co-operation and Development since June 1, 2006....


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.

Special bodies

  • Africa Partnership Forum
  • Business and Industry Advisory Committee (BIAC)
  • Development Assistance Committee
    Development Assistance Committee
    The Organisation for Economic Co-operation and Development's Development Assistance Committee is a forum for selected OECD member states to discuss issues surrounding aid, development and poverty reduction in developing countries...

  • OECD Development Centre
  • International Transport Forum (ITF)
    International Transport Forum (ITF)
    The International Transport Forum is an inter-governmental organisation within the OECD system...

     – formally known as the European Conference of Ministers of Transport
  • International Energy Agency
    International Energy Agency
    The International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...

  • Nuclear Energy Agency
    Nuclear Energy Agency
    The Nuclear Energy Agency is an intergovernmental multinational agency that is organized under the Organisation for Economic Co-operation and Development...

  • Partnership for Democratic Governance (PDG)
  • Sahel and West Africa Club
  • Trade Union Advisory Committee (TUAC)

Current members


There are currently 34 members of the OECD.
Country Membership Geographic location Notes
 Australia Oceania
 Austria Europe OEEC founding member.
 Belgium Europe OEEC founding member.
 Canada North America
 Chile South America
 Czech Republic Europe
 Denmark Europe OEEC founding member.
 Estonia Europe
 Finland Europe
 Early Modern France Europe OEEC founding member.
 Germany Europe Joined OEEC in 1955 (West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....

). Previously represented by the Trizone.
 Greece Europe OEEC founding member.
 Hungary Europe
 Iceland Europe OEEC founding member.
 Republic of Ireland Europe OEEC founding member.
 Israel Asia
 Italy Europe OEEC founding member.
 Japan Asia
 South Korea Asia
 Luxembourg Europe OEEC founding member.
 Mexico North America
 Netherlands Europe OEEC founding member.
 New Zealand Oceania
 Norway Europe OEEC founding member.
 Poland Europe
 Portugal Europe OEEC founding member.
 Slovakia Europe
 Slovenia Europe
 Spain Europe Joined OEEC in 1959.
 Sweden Europe OEEC founding member.
 Switzerland Europe OEEC founding member.
 Turkey Eurasia OEEC founding member.
 United Kingdom Europe OEEC founding member.
 United States North America


The European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

 participates in the work of the OECD alongside the EU Member States.

Enlargement

: It applied for membership in 1995, but, according to the Cypriot government, it was vetoed by Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

.: In 1996, Latvia along with Estonia and Lithuania signed a Joint Declaration expressing willingness of the three Baltic States to become full members of the OECD.: (See Latvia.): In September 2005 the government of Malta applied to join the OECD as full member.: The OECD agreed to invite Russia to become a full member in May 2007.

Relations with non-members



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 open accession discussions with the Russian Federation. The OECD Ministerial Council of 2007 also decided to strengthen OECD's co-operation with Brazil, China, India, Indonesia and South Africa, through a process of enhanced engagement.

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



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. In 1997–1998, the draft Multilateral Agreement on Investment
Multilateral Agreement on Investment
The Multilateral Agreement on Investment was a draft agreement negotiated between members of the Organisation for Economic Co-operation and Development in 1995–1998. Its ostensible purpose was to develop multilateral rules that would ensure international investment was governed in a more...

 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
Least Developed Countries
Least developed country is the name given to a country which, according to the United Nations, exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world...

. 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.

Indicators

Land areas, populations, economic indicators and various indexes of member states
Country Area
(km²)
Population
(thousands)
2010
GDP (PPP)
(millions, Intl. $)
2010
GDP (PPP)
per capita

(Intl. $)
2010
HDI
Human Development Index
The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries...


2011
FSI
2011
CPI
Corruption Perceptions Index
Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private...


2010
IEF
Index of Economic Freedom
The Index of Economic Freedom is a series of 10 economic measurements created by The Heritage Foundation and The Wall Street Journal. Its stated objective is to measure the degree of economic freedom in the world's nations....


2011
GPI
Global Peace Index
The Global Peace Index is an attempt to measure the relative position of nations' and regions' peacefulness. It is the product of Institute for Economics and Peace and developed in consultation with an international panel of peace experts from peace institutes and think tanks with data collected...


2011
WPFI
2010
DI
Democracy Index
The Democracy Index is an index compiled by the Economist Intelligence Unit that claims to measure the state of democracy in 167 countries, of which 166 are sovereign states and 165 are UN member states...


2010
Income
inequality
Gini coefficient
The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician and sociologist Corrado Gini and published in his 1912 paper "Variability and Mutability" ....


late-2000s
 Australia 7,741,220 21,472 901,509.0 41,985 0.929 28.1 8.7 82.5 1.455 5.38 9.22 0.336
 Austria 83,871 8,397 334,510.6 39,837 0.885 27.3 7.9 71.9 1.337 0.50 8.49 0.265
 Belgium 30,528 10,566 405,159.7 38,346 0.886 34.1 7.1 70.2 1.413 4.00 8.05 0.269
 Canada 9,984,670 33,639 1,331,266.5 39,575 0.908 27.7 8.9 80.8 1.355 7.00 9.08 0.319
 Chile 756,102 17,135 253,788.6 14,811 0.805 40.7 7.2 77.4 1.710 10.50 7.67 0.503
 Czech Republic 78,867 10,279 274,112.6 26,667 0.865 42.4 4.6 70.4 1.320 7.50 8.19 0.255
 Denmark 43,094 5,485 215,455.4 39,281 0.895 23.8 9.3 78.6 1.289 2.50 9.52 0.248
 Estonia 45,228 1,339 28,346.4 21,170 0.835 49.3 6.5 75.2 1.798 2.00 7.68 0.313
 Finland 338,145 5,347 196,673.3 36,782 0.882 19.7 9.2 74.0 1.352 0.00 9.19 0.263
 Early Modern France 643,427 62,452 2,232,694.4 35,751 0.884 34.0 6.8 64.6 1.697 13.38 7.77 0.293
 Germany 357,022 82,834 3,108,389.0 37,526 0.905 33.9 7.9 71.8 1.416 4.25 8.38 0.295
 Greece 131,957 11,284 316,701.1 28,066 0.861 47.4 3.5 60.3 1.947 19.00 7.92 0.321
 Hungary 93,028 10,007 210,364.0 21,022 0.816 48.7 4.7 66.6 1.495 7.50 7.21 0.272
 Iceland 103,000 306 11,481.2 37,520 0.898 30.1 8.5 68.2 1.148 0.00 9.65 0.279
 Republic of Ireland 70,273 4,347 175,104.5 40,282 0.908 25.3 8.0 78.7 1.370 2.00 8.79 0.299
 Israel 22,072 7,285 218,019.6 29,927 0.888 a 6.1 68.5 2.901 23.25 7.48 0.371
 Italy 301,340 59,004 1,995,233.4 33,815 0.874 45.8 3.9 60.3 1.775 15.00 7.83 0.337
 Japan 377,915 127,176 4,330,283.7 34,050 0.901 31.0 7.8 72.8 1.287 2.50 8.08 0.329
 South Korea 99,720 48,875 1,423,703.8 29,129 0.897 38.8 5.4 69.8 1.829 13.33 8.11 0.315
 Luxembourg 2,586 479 42,172.5c 88,784c 0.867 26.1 8.5 76.2 1.341d 4.00 8.88 0.273
 Mexico 1,964,375 108,396 1,647,212.0 15,196 0.770 75.1 3.1 67.8 2.362 47.50 6.93 0.476
 Netherlands 41,543 16,448 693,319.3 42,152 0.910 28.3 8.8 74.7 1.628 0.00 8.99 0.294
 New Zealand 267,710 4,258 128,614.2 30,205 0.908 24.8 9.3 82.3 1.279 1.50 9.26 0.330
 Norway 323,802 4,762 274,469.1 57,637 0.943 20.4 8.6 70.3 1.356 0.00 9.80 0.250
 Poland 312,685 37,798 752,088.2 19,898 0.813 46.8 5.3 64.1 1.545 8.88 7.05 0.314
 Portugal 92,090 10,626 272,467.9 25,642 0.809 32.3 6.0 64.0 1.453 12.36 8.02 0.361
 Slovakia 49,035 5,401 130,703.3 24,200 0.834 47.1 4.3 69.5 1.576 11.50 7.35 0.246
 Slovenia 20,273 2,025 57,600.5 28,445 0.884 35.5 6.4 64.6 1.358 13.44 7.69 0.236
 Spain 505,370 44,683 1,503,121.2 33,640 0.878 43.1 6.1 70.2 1.641 12.25 8.16 0.309
 Sweden 450,295 9,237 368,979.8 39,946 0.904 22.8 9.2 71.9 1.401 0.00 9.50 0.259
 Switzerland 41,277 7,671 359,976.4 46,927 0.903 23.2 8.7 81.9 1.421 0.00 9.09 0.276
 Turkey 783,562 76,505 1,118,839.0 14,624 0.699 74.9 4.4 64.2 2.411 49.25 5.73 0.409
 United Kingdom 243,610 62,309 2,213,646.4 35,527 0.863 34.1 7.6 74.5 1.631 6.00 8.16 0.341
 United States 9,826,675 310,233 14,582,400.0 47,005 0.910 34.8 7.1 77.8 2.063 6.75 8.18 0.378
OECDb 36,226,367 1,228,060 42,108,407.0 34,289 0.871 36.3 6.9 71.7 1.607 9.21 8.27 0.313

a The FSI index supplies no figure for Israel, but rather supplies a figure (84.4) for "Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

/West Bank
West Bank
The West Bank ) of the Jordan River is the landlocked geographical eastern part of the Palestinian territories located in Western Asia. To the west, north, and south, the West Bank shares borders with the state of Israel. To the east, across the Jordan River, lies the Hashemite Kingdom of Jordan...

".


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 2009.

d Data are for 2010.

Note: Green-colored cells indicate highest value or best performance in index, while yellow-colored cells indicate the opposite.

See also


  • Competition regulator
    Competition regulator
    A competition regulator is a government agency, typically a statutory authority, sometimes called an economic regulator, which regulates and enforces competition laws, and may sometimes also enforce consumer protection laws...

  • Developed Country
    Developed country
    A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...

  • Frascati Manual
    Frascati Manual
    The Frascati Manual is a document setting forth the methodology for collecting statistics about research and development. The Manual was prepared and published by the Organisation for Economic Co-operation and Development....

  • German Marshall Fund
    German Marshall Fund
    The German Marshall Fund of the United States is a nonpartisan American public policy and grantmaking institution dedicated to promoting greater cooperation and understanding between North America and Europe....

  • Good Laboratory Practice
    Good Laboratory Practice
    In the experimental research arena, the phrase good laboratory practice or GLP specifically refers to a quality system of management controls for research laboratories and organizations to try to ensure the uniformity, consistency, reliability, reproducibility, quality, and integrity of chemical ...

  • Gulf Co-operation Council
  • International organisations in Europe
    International organisations in Europe
    The following table lists the independent European states, and their memberships in selected organisations and treaties.1 These countries are currently not participating in the EU's single market , but the EU has common external Customs Union agreements with Turkey , Andorra and San Marino...

  • OECD Better Life Index
    OECD Better Life Index
    The OECD Better Life Index is an index that attempts to evaluate the well-being in OECD countries. First published on 24 May 2011, it includes 11 "topics" of well-being: Housing, Income, Jobs, Community, Education, Environment, Governance, Health, Life, Satisfaction, Safety, Work-life balance...

  • Official statistics
    Official statistics
    Official statistics are statistics published by government agencies or other public bodies such as international organizations. They provide quantitative or qualitative information on all major areas of citizens' lives, such as economic and social development, living conditions, health, education,...

  • OSCE countries statistics
  • SourceOECD
    SourceOECD
    SourceOECD was the online library of the OECD from 2001-2010. In July 2010 it was replaced by OECD iLibrary .-OECD publications:The OECD publishes roughly 250 books a year, on subjects as diverse as general economy, statistics, agriculture, science, future studies or environment...

  • Transfer pricing
    Transfer pricing
    Transfer pricing refers to the setting, analysis, documentation, and adjustment of charges made between related parties for goods, services, or use of property . Transfer prices among components of an enterprise may be used to reflect allocation of resources among such components, or for other...



External links


Video clips