OECD


The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 37 [|member countries], 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, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members. Generally, OECD members are high-income economies with a very high Human Development Index and are regarded as developed countries. As of 2017, the OECD member countries collectively comprised 62.2% of global nominal GDP and 42.8% of global GDP at purchasing power parity. The OECD is an official United Nations observer.
In 1948, the OECD originated as the Organisation for European Economic Co-operation , led by Robert Marjolin of France, to help administer the Marshall Plan. This would be achieved by allocating United States financial aid and implementing economic programs for the reconstruction of Europe after World War II.
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. The OECD's headquarters are at the Château de la Muette in Paris, France. The OECD is funded by contributions from member countries at varying rates and had a total budget of €386 million in 2019.

History

Organisation for European Economic Co-operation

The Organisation for European Economic Co-operation 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. 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 has been headquartered in the Château de la Muette in Paris, France. After the Marshall Plan ended, the OEEC focused on economic issues.
In the 1950s, the OEEC provided the framework for negotiations aimed at determining conditions for setting up a European Free Trade Area, to bring the European Economic Community of the six and the other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency was set up under the OEEC.
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.

Founding

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. The official founding members are:
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.
The OECD created agencies such as the OECD Development Centre, International Energy Agency, and Financial Action Task Force on Money Laundering.
Unlike the organisations of the United Nations system, OECD uses the spelling "organisation" with an "s" in its name rather than "organization".

Enlargement to Central Europe

In 1989, after the Revolutions of 1989, the OECD started to assist countries in Central Europe to prepare market economy reforms. In 1990, the Centre for Co-operation with European Economies in Transition was established, and in 1991, the Programme "Partners in Transition" was launched for the benefit of Czechoslovakia, Hungary, and Poland. This programme also included a membership option for these countries. As a result of this, Poland, Hungary, the Czech Republic, and Slovakia, as well as Mexico and South Korea became members of the OECD between 1994 and 2000.

Reform and further enlargement

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. In 1996, Estonia, Latvia, and Lithuania signed a Joint Declaration expressing willingness to become full members of the OECD. Slovenia also applied for membership that same year. In 2005, Malta applied to join the organisation. The EU is lobbying for admission of all EU member states. 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. In September 2012, the government of Bulgaria confirmed it will apply for full membership before the OECD Secretariat.
The OECD established a working group headed by ambassador Seiichiro Noboru, to work out a plan for the enlargement with non-members. The working group defined four criteria which fullfilment is required: "like-mindedness", "significant player", "mutual benefit" and "global considerations". The working group's recommendations were presented at the OECD Ministerial Council Meeting on 13 May 2004. 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. Chile, Slovenia, Israel and Estonia all became members in 2010. In March 2014, the OECD halted membership talks with Russia in response to its role in the 2014 Annexation of Crimea.
In 2013, the OECD decided to open membership talks with Colombia and Latvia. In 2015, it opened talks with Costa Rica and Lithuania. Latvia became a full member on 1 July 2016 and Lithuania on 5 July 2018. Colombia signed the accession agreement on 30 May 2018 and became a full member on 28 April 2020. On 15 May 2020, the OECD decided to extend a formal invitation for Costa Rica to join the OECD.
Other countries that have expressed interest in OECD membership are Argentina, Peru, Malaysia, Brazil and Croatia.

Objectives and activities

Taxation

The OECD publishes and updates a model tax convention that serves as a template for allocating taxation rights between countries. 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 rather than the country in which the investment is made. As a result, it is most effective as between two countries with reciprocal investment flows, but can be unbalanced when one of the signatory countries is economically weaker than the other. Additionally, the OECD has published and updated the Transfer Pricing Guidelines since 1995. The Transfer Pricing Guidelines serve as a template for profit allocation of intercompany transactions to countries. The latest version, of July 2017, incorporates the approved Actions developed under the Base Erosion and Profit Shifting project initiated by the G20.

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.
The OECD Library & Archives collection dates from 1947, including records from the Committee for European Economic Co-operation and the Organisation for European Economic Co-operation, predecessors of today's OECD. External researchers can consult OECD publications and archival material on the OECD premises by appointment.

Books

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 titles include:
All OECD books are available on the OECD iLibrary, the online bookshop or OECD Library & Archives.

Magazine

OECD Observer, an award-winning magazine launched in 1962. The magazine appeared six times a year until 2010, and became quarterly in 2011 with the introduction of the OECD Yearbook, launched for the 50th anniversary of the organisation. The online and mobile 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. An OECD Observer Crossword was introduced in Q2 2013.

Statistics

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.
OECD statistics are available in several forms:
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.

Structure

The OECD's structure consists of three main elements:
Delegates from the member countries attend committees' and other meetings. Former Deputy Secretary-General 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.
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, member countries, and non-member countries.
Noteworthy meetings include:
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:
No.Secretary-GeneralTime servedCountry of origin
1Robert Marjolin1948 – 1955 France
2René Sergent1955 – 1960 France
3Thorkil Kristensen1960 – September 1961 Denmark

No.Secretary-GeneralTime servedCountry of origin
1Thorkil Kristensen30 September 1961 – 30 September 1969 Denmark
2Emiel van Lennep1 October 1969 – September 1984 Netherlands
3Jean-Claude Paye1 October 1984 – 30 September 1994 France
Staffan Sohlman 1 October 1994 – November 1994 Sweden
3Jean-Claude PayeNovember 1994 – 30 May 1996 France
4Donald Johnston1 June 1996 – 30 May 2006 Canada
5José Ángel Gurría1 June 2006 – present Mexico

Committees

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.

Special bodies and entities

Current members

There are currently 37 members of the OECD.
CountryApplicationNegotiationsInvitationMembershipGeographic locationNotes
Oceania
EuropeOEEC member.
EuropeOEEC member.
North America
South America
EuropeWas a member of the rival Comecon from 1949 to 1991 as part of Czechoslovakia.
EuropeOEEC member.
Europe
Europe
EuropeOEEC member.
EuropeJoined OEEC in 1949. Previously represented by the Trizone. East Germany was a member of the rival Comecon from 1950 until German reunification in 1990.
EuropeOEEC member.
EuropeWas a member of the rival Comecon from 1949 to 1991.
EuropeOEEC member.
EuropeOEEC member.
West Asia
EuropeOEEC member.
East Asia
East Asia
Europe
Europe
EuropeOEEC member.
North America
EuropeOEEC member.
Oceania
EuropeOEEC member.
EuropeWas a member of the rival Comecon from 1949 to 1991.
EuropeOEEC member.
EuropeWas a member of the rival Comecon from 1949 to 1991 as part of Czechoslovakia.
Europe
EuropeJoined OEEC in 1958.
EuropeOEEC member.
EuropeOEEC member.
West AsiaOEEC member.
EuropeOEEC member.
North America

The European Commission participates in the work of the OECD alongside the EU member states.

Former members

was member of the OEEC until 1954, when it ceased to exist as an independent territorial entity.

Countries invited to join

In May 2013, the OECD declared its intention to open accession negotiations with Costa Rica in 2015. On 9 April 2015, the OECD decided to open accession negotiations with Costa Rica. On 15 May 2020, the OECD invited Costa Rica to join the OECD.

Countries whose accession talks are suspended

In May 2007, the OECD decided to open accession negotiations with Russia. In March 2014, the OECD halted membership talks in response to Russia's role in that year's Crimean Annexation.

Countries whose membership request is under consideration by the OECD Council

Member states

The following table shows various data for OECD member countries, 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.
CountryArea

2017
Population
2017
GDP

2017
GDP
per capita

2017
Income
inequality
2008-
2016
HDI
2018
FSI
2019
RLI
2020
CPI
2019
IEF
2020
GPI
2019
WPFI
2019
DI
2019
Australia7,741,22024,598,9331,192,065,505,30148,46034.70.93819.70.807782.61.41916.559.09
Austria83,8798,809,212461,582,926,40052,39830.50.91425.00.827773.31.29115.338.29
Belgium30,53011,372,068544,041,974,95847,84027.70.91928.60.797568.91.53312.077.64
Canada9,984,67036,708,0831,714,447,151,94446,70534.00.92220.00.817778.21.32715.699.22
Chile756,09618,054,726444,777,637,16924,63547.70.84738.90.676776.81.63425.658.08
Colombia1,141,74848,901,066709,420,539,90714,50749.70.76175.70.503769.22.66142.827.13
Czech Republic78,87010,591,323384,753,663,28336,32725.90.89137.60.735674.81.38324.897.69
Denmark42,9225,769,603296,350,723,35451,36428.20.93019.50.908778.31.3169.879.22
Estonia45,2301,315,48041,756,008,08931,74232.70.88240.80.817477.71.72712.277.90
Finland338,4205,511,303247,269,243,61944,86627.10.92516.90.878675.71.4887.909.25
France549,08767,118,6482,876,059,993,39942,85032.70.89132.00.736966.01.89222.218.12
Germany357,38082,695,0004,187,583,088,23950,63931.70.93924.70.848073.51.54714.608.68
Greece131,96010,760,421297,008,117,38927,60236.00.87253.90.614859.91.93329.087.43
Hungary93,0309,781,127274,926,859,41228,10830.40.84549.60.534466.41.54030.446.63
Iceland103,000341,28418,140,165,68953,15327.80.93819.87877.11.07214.719.58
Ireland70,2804,813,608364,140,938,83075,64831.80.94220.67480.91.39015.009.24
Israel22,0708,712,400333,351,018,35438,26241.40.9066074.02.73530.807.86
Italy301,34060,551,4162,387,357,093,79339,42735.40.88343.80.665363.81.75424.987.52
Japan377,962126,785,7975,487,161,155,33243,27932.10.91534.30.787373.31.36929.367.99
Korea, South100,28051,466,2011,972,970,735,84238,33531.60.90633.70.735974.01.86724.948.00
Latvia64,4901,940,74053,561,181,20627,59834.20.85443.95671.91.71819.537.49
Lithuania65,2862,827,72190,748,628,81232,09237.40.86938.16076.71.77922.067.50
Luxembourg2,590599,44962,189,692,542103,74533.80.90920.48075.815.668.81
Mexico1,964,380129,163,2762,358,275,520,12618,25843.40.76769.70.442966.02.60046.786.09
Netherlands41,54017,132,854899,530,829,78352,50328.20.93324.80.848277.01.5308.639.01
New Zealand267,7104,793,900197,072,471,93141,1090.92120.10.838784.11.22110.759.26
Norway385,1785,282,223324,403,929,57961,41427.50.95418.00.898473.41.5367.829.87
Poland312,68037,975,8411,102,293,080,83129,0260.87242.80.665869.11.65428.896.62
Portugal92,22510,293,718326,029,976,81531,67335.50.85025.30.706267.01.27412.658.03
Slovakia49,0355,439,892171,990,237,34731,61626.50.85740.55066.81.55023.587.17
Slovenia20,2702,066,74872,063,812,12634,86825.40.90228.00.696067.81.35522.317.50
Spain505,94046,572,0281,769,637,042,99637,99836.20.89340.70.726266.91.69921.998.29
Sweden447,42010,067,744505,482,949,46950,20829.20.93720.30.868574.91.5338.319.39
Switzerland41,2908,466,017547,853,971,54364,71232.30.94618.78582.01.37510.529.03
Turkey785,35080,745,0202,140,141,581,68529,50541.90.80880.30.433964.43.01552.814.09
243,61066,022,2732,856,703,440,28943,26933.20.92036.70.797779.31.80122.238.52
United States9,831,510325,719,17819,390,604,000,00059,53241.50.92038.00.726976.62.40125.697.96
OECDb,c36,328,7301,300,865,25556,394,326,347,47643,35133.10.89533.30.746873.21.66520.468.11
CountryArea

2017
Population
2017
GDP

2017
GDP
per capita

2017
Income
inequality
2008-2016
HDI
2018
FSI
2019
RLI
2020
CPI
2019
IEF
2020
GPI
2019
WPFI
2019
DI
2019

Highest quartileUpper-mid Lower-mid Lowest quartile

Potential member states

Highest quartileUpper-mid Lower-mid Lowest quartile

OECD Composite Leading Indicators and Turning Points

OECD Composite Leading Indicators: Reference Turning Points and Component Series
The components of the Composite Leading Indicators are time series which exhibit leading relationship to the GDP at turning points. Country Composite Leading Indicators are compiled by combining de-trended smoothed and normalized components. The component series for each country are selected based on various criteria such as economic significance; cyclical behaviour; data quality; timeliness and availability.
The turning point detection algorithm is a simplified version of the original Bry and Boschan routine.