Do You know What OECD Is?

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What is the role of OECD?

The main purpose of the OECD is to improve the global economy and promote world trade. It has been accomplished through the. It provides an outlet for the governments of different countries to work together to find solutions to common problems.

Introduction

The Organization for Economic Co-operation and Development (OECD; French: Organization de Cooperation et de Development Economies, OCDE) is an intergovernmental economic organization 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 (HDI) and are regarded as developed countries. As of 2017, the OECD member countries collectively comprised 62.2% of global nominal GDP (US$49.6 trillion) and 42.8% of global GDP (Int$54.2 trillion) at purchasing power parity. The OECD is an official United Nations observer. In 1948, the OECD originated as the Organization for European Economic Co-operation (OEEC), led by Robert Marjolin of France, to help administer the Marshall Plan (which was rejected by the Soviet Union and its satellite states). 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 Organization 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.
Although the OECD does not have the power to enforce its decisions, which further require a unanimous vote from its members, it is recognized as a highly influential publisher of mostly economic data through publications as well as annual evaluations and rankings of member countries.

History

  1. Organization for European Economic Co-operation: The Organization for European Economic Co-operation (OEEC) 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. Similar reconstruction aid was sent to the war-torn Republic of China and post-war Korea, but not under the name “Marshall Plan”. The organisation 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.
  2. 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 (three countries, Netherlands, Luxembourg and Italy, all OEEC members, ratified the OECD Convention after September 1961 but are nevertheless considered founding members).
  3. Enlargement to Central Europe: In 1989, after the Revolutions of 1989, the OECD started to assist countries in Central Europe (especially the Visegrád Group) 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 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.
  4. 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 the 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.

Objectives and activities

  1. 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 (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 unbalanced when one of the signatory countries is economically weaker than the other (such as between OECD and non-OECD pairings). 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 (BEPS) project initiated by the G20.
  2. Multinational enterprise: The OECD Guidelines for Multinational Enterprises are a set of legally non binding guidelines attached as an annex to the OECD Declaration on International Investment and Multinational Enterprises. They are recommendations providing principles and standards for responsible business conduct for multinational corporations operating in or from countries adhering to the Declaration.
  3. 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 (CEEC) and the Organisation for European Economic Co-operation (OEEC), predecessors of today’s OECD. External researchers can consult OECD publications and archival material on the OECD premises by appointment.
  4. Books: Reports on a wide range of topics for sale at the OECD’s Conference Centre Bookshop
    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. All OECD books are available on the OECD iLibrary, the online bookshop or OECD Library & Archives.
  5. 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.
  6. 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:
    -as interactive charts on the OECD Data Portal,
    -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 that links to the underlying data).
  7. 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.
  8. Reference works: The OECD is responsible for the OECD Guidelines for the Testing of Chemicals, a continuously updated document that 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 the Organisation.
  • 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 Ángel Gurría), provides support to Standing and Substantive Committees. It is organised into 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.[citation needed] 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 countrie

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, agriculture, technology, taxation, and other areas.

 

Summary
Do You know What OECD Is?
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Do You know What OECD Is?
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The main purpose of the OECD is to improve the global economy and promote world trade. It has been accomplished through the. It provides an outlet for the governments of different countries to work together to find solutions to common problems.
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