What Is the OECD?
Let me tell you directly: The Organisation for Economic Co-operation and Development, or OECD, is a group of 37 member countries that come together to discuss and develop economic and social policies. These members are generally democratic nations that back free-market economies.
Key Takeaways on the OECD
You should know that the OECD's main aim is to create policies that build prosperity, equality, opportunity, and well-being for everyone. It was set up on December 14, 1960, by 18 European countries along with the United States and Canada. The headquarters are in the Chateau de la Muette in Paris, France.
Understanding the OECD
I see the OECD as something like a think tank or monitoring body. Its goal is straightforward: shape policies for prosperity, equality, opportunity, and well-being. Over time, it has tackled raising living standards in member countries, boosting world trade, and ensuring economic stability.
The OECD started on December 14, 1960, with those 18 European nations plus the US and Canada. It has grown to include countries from South America and the Asia-Pacific, covering most of the world's advanced economies.
Back in 1948, after World War II, the Organisation for European Economic Co-operation (OEEC) was formed to handle the US-funded Marshall Plan for rebuilding Europe. This group stressed cooperation for economic growth to prevent more wars in Europe. It played a key role in setting up the European Economic Community, which became the European Union, and helped create a European Free Trade Area.
By 1961, the OECD's founding articles took effect, and with the US and Canada joining the European OEEC members, the name changed to OECD to match the wider scope. Again, headquarters are in Paris at the Chateau de la Muette.
What the OECD Does
The OECD puts out economic reports, statistical databases, analyses, and forecasts on global economic growth. These can be worldwide, regional, or country-specific. It examines how social issues like gender discrimination affect growth and suggests policies that support growth while considering the environment. It also works to stop bribery and financial crimes globally.
You might have heard of the OECD's 'black list' for uncooperative tax havens—though none are on it now, since by 2009 all original listed countries agreed to OECD transparency standards. The OECD is pushing tax reform with the G20 to cut down on tax avoidance by big companies, estimating it costs economies $100 billion to $240 billion in lost revenue each year. Plus, it offers consulting and support to countries in central Asia and eastern Europe shifting to market-based economies.
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