What is the primary function of the Organisation for Economic Co-operation and Development (OECD)?

The Organisation for Economic Co-operation and Development (OECD) serves as an intergovernmental forum for 38 member countries. Its primary function is to stimulate economic progress and world trade by providing a platform for members to compare policy experiences, seek solutions to common problems, identify best practices, and coordinate domestic and international policies.

What are the core values or commitments shared by OECD member countries?

OECD member countries describe themselves as committed to democracy and the market economy. These shared values form the basis for their cooperation on economic and policy matters.

How does the OECD contribute to global economic activity in terms of GDP?

OECD member countries collectively represent a significant portion of the global economy. As of 2017, their combined global nominal GDP was approximately USD 49.6 trillion, accounting for 62.2% of the world's nominal GDP. In terms of purchasing power parity, their GDP was $54.2 trillion, representing 42.8% of the global total.

What is the general economic and developmental status of most OECD member countries?

The majority of OECD member countries are generally considered developed countries with high-income economies. They also tend to have a very high Human Development Index, indicating advanced levels of social and economic well-being.

What was the predecessor organization to the OECD, and when was it established?

The predecessor organization to the OECD was the Organisation for European Economic Co-operation (OEEC), which was established in April 1948. The OEEC was created among European recipients of Marshall Plan aid to facilitate the reconstruction of Europe after World War II.

What was the primary purpose of the Organisation for European Economic Co-operation (OEEC)?

The primary purpose of the OEEC was to administer the Marshall Plan aid allocated by the United States for the reconstruction of Europe following World War II. Initially, its membership was limited to Western European states.

What event led to the establishment of the OECD as a successor to the OEEC?

Following the end of Marshall Plan aid in 1952, the OEEC shifted its focus to broader economic issues. However, the creation of the European Economic Community and Euratom in 1957 presented challenges to the OEEC's coordinating role. Leading countries felt the OEEC could be adapted for a more global mission, leading to the decision to reconstitute it into the OECD, which officially superseded the OEEC in September 1961.

Which countries were the founding members of the OECD?

The OECD was established on September 30, 1961, superseding the OEEC. The founding members included the European countries that were part of the OEEC, along with the United States and Canada. Although some ratified the convention after September 1961, the following are considered founding members: Austria, Belgium, Canada, Denmark, France, West Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom, and United States.

Which non-European countries were among the early members of the OECD after its founding?

Japan became a member of the OECD in 1964. Following Japan, Finland, Australia, and New Zealand also joined the organization within the subsequent decade.

What were the three main aims of the OECD as stated in Article 1 of its Convention?

The OECD's primary aims, as outlined in Article 1 of its Convention, are: 1) to achieve the highest sustainable economic growth and employment, along with a rising standard of living in member countries, while maintaining financial stability; 2) to contribute to sound economic expansion in both member and non-member countries; and 3) to contribute to the expansion of world trade.

How did the Revolutions of 1989 influence the OECD's activities?

Following the Revolutions of 1989, the OECD began actively assisting countries in Central Europe, particularly those in the Visegrád Group, in their transition towards market economies. This led to the establishment of the Centre for Co-operation with European Economies in Transition and the launch of the 'Partners in Transition' program.

What criteria does the OECD use to evaluate potential new member countries?

The OECD working group defined four key criteria for potential new members: 'like-mindedness' (sharing the same values), being a 'significant player' in the global economy, offering 'mutual benefit' through membership, and considering 'global considerations'.

Which countries were invited to accession discussions in 2007, and with which countries was cooperation strengthened?

In May 2007, the OECD Ministerial Council decided to open accession discussions with Chile, Estonia, Israel, Russia, and Slovenia. Simultaneously, the organization decided to strengthen cooperation with Brazil, China, India, Indonesia, and South Africa through an enhanced engagement process.

Why were membership talks with Russia halted in March 2014?

Membership talks with Russia were halted in March 2014 by the OECD in response to Russia's annexation of Crimea and its ongoing actions perceived as human and civil rights abuses.

What actions led to the suspension and termination of participation for Russia and Belarus?

In March 2022, the OECD suspended the participation of Russia and Belarus due to the ongoing Russian invasion of Ukraine. Subsequently, the accession process with Russia was terminated on February 25, 2022, following the invasion, and Belarus was suspended from any participation in March 2022.

Which countries became members of the OECD between 1996 and 2000?

Between 1996 and 2000, several countries joined the OECD as a result of the post-1989 transition and enlargement processes. These included Poland, Hungary, the Czech Republic, Slovakia, South Korea, and Mexico.

Which countries joined the OECD in 2010?

In 2010, four countries became members of the OECD after their accession discussions were opened in 2007: Chile, Estonia, Israel, and Slovenia.

When did Latvia and Lithuania become members of the OECD?

Latvia became a member of the OECD on July 1, 2016, and Lithuania followed soon after, joining on July 5, 2018.

When did Colombia and Costa Rica become members of the OECD?

Colombia signed its accession agreement on May 30, 2018, and officially became a member on April 28, 2020. Costa Rica received a formal invitation to join on May 15, 2020, and became a member on May 25, 2021.

Which countries are currently undergoing accession discussions with the OECD?

As of recent reports, the OECD has adopted accession roadmaps for Argentina and Indonesia in March 2024, and for Thailand in July 2024. Previously, accession discussions were underway with Brazil, Bulgaria, Croatia, Peru, and Romania since 2022.

What role does the OECD play in setting rules for international taxation?

The OECD plays a crucial role in establishing the rules that govern international taxation for multinational enterprises. It does this through publications like the OECD Transfer Pricing Guidelines, a Model Tax Convention, and rules for country-by-country reporting.

What is the OECD Model Tax Convention, and what is its general approach to allocating taxation rights?

The OECD Model Tax Convention serves as a template for bilateral tax treaties, outlining how taxation rights should be allocated between countries. Generally, it grants the primary right to tax to the country where the capital investment originates (the residence country), rather than the country where the investment is made (the source country). This approach is most effective between countries with reciprocal investment flows, like OECD members.

What is the purpose of Pillar 1 in the OECD's international tax reform proposals?

Pillar 1 aims to reallocate taxing rights over multinational profits to the countries where business is conducted, including markets where companies sell products without a physical presence. This initiative is intended to address issues related to digital services taxes and involves allocating residual profits above a certain threshold.

What is the proposed global minimum corporate tax rate under Pillar 2, and what is its intended effect?

Pillar 2 proposes a global minimum corporate tax rate of 15%. The intention is that if a multinational company is taxed at a lower rate in one country, its home country (headquarters) will collect the difference. This policy aims to ensure large multinational companies pay their fair share of tax globally and discourage locating headquarters solely in low-tax jurisdictions.

What are the OECD Guidelines for Multinational Enterprises, and what is their legal standing?

The OECD Guidelines for Multinational Enterprises are recommendations for responsible business conduct for multinational corporations operating across borders. They are attached to the OECD Declaration on International Investment and Multinational Enterprises and are legally non-binding, serving as principles and standards for responsible corporate behavior.

Where can users access OECD publications and databases published since 1998?

Since 1998, all OECD titles and databases have been accessible through OECD iLibrary, which serves as the organization's online library for books, papers, and statistics. The OECD Library & Archives also holds materials dating back to 1947.

What are some of the OECD's flagship publications?

The OECD publishes numerous reports and data annually. Key flagship publications include the 'OECD Economic Outlook,' published twice a year, the monthly 'Main Economic Indicators,' and the 'OECD Factbook,' which provides over 100 economic, environmental, and social indicators.

What is the OECD Economic Outlook, and how frequently is it published?

The OECD Economic Outlook is a flagship publication released twice a year. It provides forecasts and analysis of the economic situation in OECD member countries, including assessments of major economic trends and challenges.

What happened to the OECD Observer magazine?

The 'OECD Observer' magazine, launched in 1962, was published six times a year until 2010 and then quarterly. It ceased publication with its fourth quarter 2019 edition, and its website closed in the first quarter of 2021, though its archive remains accessible.

What are the three main components of the OECD's structure?

The OECD's structure consists of three primary elements: 1) the member countries, represented by delegations in the OECD Council; 2) the substantive committees overseeing specific work areas; and 3) the Secretariat, led by the Secretary-General, which provides support and conducts research.

How are member countries represented within the OECD Council?

Each OECD member country is represented by a delegation, typically led by an ambassador. These delegations collectively form the OECD Council, which is responsible for providing direction and guidance to the organization's work.

What is the role of the OECD Secretariat, and who leads it?

The OECD Secretariat, led by the Secretary-General, provides essential support to the organization's committees and activities. It collects data, monitors trends, conducts analysis and forecasts, and researches various social, economic, and environmental changes under the guidance of member governments. The Secretariat is organized into various directorates.

What types of meetings does the OECD regularly hold?

The OECD regularly holds several types of meetings, including the annual Ministerial Council Meeting, the annual OECD Forum which brings together diverse leaders, thematic ministerial meetings focused on specific policy areas, and bi-annual World Forums on Statistics, Knowledge, and Policies.

How is the Secretary-General of the OECD selected?

The selection of the Secretary-General of the OECD requires consensus among all member states, meaning every member country must agree on the chosen candidate.

Who is the current Secretary-General of the OECD?

As of the provided text, the current Secretary-General of the OECD is Mathias Cormann.

Who were the Secretaries-General of the OEEC?

The Secretaries-General of the OEEC were Robert Marjolin, who served from 1948 to 1955, and René Sergent, who served from 1955 to 1960.

Who have been the Secretaries-General of the OECD since its establishment?

Since the OECD's establishment, the Secretaries-General have been Thorkil Kristensen (1961-1969), Emiel van Lennep (1969-1984), Jean-Claude Paye (1984-1996), Donald Johnston (1996-2006), José Ángel Gurría (2006-2021), and Mathias Cormann (2021-present).

What is the role of the OECD's specialized committees?

The OECD has approximately 200 specialized committees, working groups, and expert groups. These committees focus on specific policy areas, discuss policies, review progress, and oversee various publications and initiatives within their respective domains.

How are decisions made within the OECD?

Decisions within the OECD are made through voting, where each member country holds one vote. Unanimity among those voting is required for a decision to pass, although dissenting members have the option to abstain rather than block a decision.

As of June 2025, how many member countries does the OECD have?

As of June 2025, the OECD has 38 member countries.

Which countries are designated as Key Partners by the OECD?

The OECD designates Brazil, China, India, Indonesia, and South Africa as Key Partners. These countries participate in policy discussions and regular OECD surveys, contributing to the organization's global engagement.

Which countries are currently listed as applicants for OECD membership?

As of recent reports, Ukraine is listed as an applicant for OECD membership, having expressed interest since 2022. Malta also applied in 2007.

Which countries have expressed interest in joining the OECD?

Several countries have expressed interest in joining the OECD, including Kazakhstan, Malaysia, and Vietnam. These expressions of interest indicate a desire to engage more closely with the organization's standards and policies.

How is the OECD budget determined, and what is the approximate annual revenue?

The OECD operates on a two-year budget determined by its member countries. In the most recent reporting period (2023-2024), the organization had annual revenues exceeding €900 million.

What is the largest single source of revenue for the OECD's "Part I Budget"?

The largest single source of revenue for the OECD's "Part I Budget" comes from assessed contributions made by member countries. These contributions are based on both the number of OECD members and the proportional size of their national economies.

What is the purpose of the permanent missions accredited to the OECD?

Permanent missions are established by member countries to represent their interests within the OECD. These missions facilitate communication, participation in meetings, and the overall engagement of the country with the organization's activities and policy discussions.

What is the OECD's relationship with the United Nations?

The OECD holds the status of an official observer at the United Nations General Assembly, signifying its role as an international organization with a global perspective and cooperative relationship with the UN system.

What is the OECD's role in promoting democracy and market economies?

The OECD serves as a platform for countries that identify as committed to democracy and market economies. It facilitates the exchange of experiences and coordination of policies among these nations, fostering shared principles and practices.

What is the OECD's contribution to global GDP in both nominal and PPP terms?

OECD member countries collectively contribute significantly to the global economy. As of 2017, they accounted for 62.2% of global nominal GDP ($49.6 trillion) and 42.8% of global GDP at purchasing power parity ($54.2 trillion).

What is the OECD's stance on social welfare spending?

OECD nations generally maintain robust social security systems, with average social welfare spending representing approximately 21% of GDP. This indicates a commitment among member countries to supporting social well-being through public expenditure.

Oecd Wiki: Global Economic Dialogue: The OECD Explained

Dive in with Flashcard Learning!

When you are ready...
🎮 Play the Wiki2Web Clarity Challenge Game🎮

About the OECD

Intergovernmental Forum

The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organization comprising 38 member countries. Established in 1961, its primary mission is to foster economic progress and stimulate world trade.

It serves as a platform for member nations, characterized by their commitment to democracy and market economies, to share policy experiences, address common challenges, identify best practices, and coordinate national and international policies.

Economic Powerhouse

OECD member countries collectively represent a significant portion of the global economy. As of recent estimates, they account for over 60% of global nominal GDP and a substantial share of global GDP based on purchasing power parity.

These nations typically exhibit high-income economies and very high Human Development Index scores, reflecting advanced levels of economic and social development.

Headquarters and Reach

The OECD's headquarters are situated at the Château de la Muette in Paris, France. This historic location also served as the base for its predecessor, the Organisation for European Economic Co-operation (OEEC).

The organization is recognized as a highly influential publisher of economic data and analysis, providing valuable insights through its publications and country evaluations.

Historical Evolution

Origins in Reconstruction

The OECD's roots trace back to the Organisation for European Economic Co-operation (OEEC), established in April 1948. The OEEC was instrumental in administering the Marshall Plan aid for the reconstruction of Europe following World War II.

Initially composed of Western European states, the OEEC's focus shifted towards broader economic issues after the cessation of Marshall Plan aid, adapting its role in a changing geopolitical landscape.

Transformation and Expansion

Recognizing the need for a more global mission, the OEEC was reconstituted into the OECD in September 1961. This transformation included the integration of the United States and Canada as full members and efforts to include Japan.

The OECD expanded significantly over the decades, incorporating nations from Europe, North America, Asia-Pacific, and Latin America, reflecting its growing global relevance.

1948: Establishment of the OEEC to manage Marshall Plan aid.
1961: OECD officially established, superseding the OEEC, with 20 founding members.
1960s-1970s: Expansion to include Japan, Finland, Australia, and New Zealand. Establishment of specialized agencies like the IEA.
1990s: Assistance to Central European economies post-1989, leading to membership for Poland, Hungary, Czech Republic, Slovakia, South Korea, and Mexico.
2000s-Present: Continued enlargement, including Chile, Estonia, Israel, Slovenia, Latvia, Colombia, Costa Rica, and Lithuania. Ongoing accession processes with several other countries.

Core Objectives

Economic Growth & Stability

The OECD aims to achieve the highest sustainable economic growth and employment rates among its member countries. Maintaining financial stability is a key objective, ensuring resilient economies that can withstand shocks.

This includes promoting sound economic expansion not only within member states but also contributing to the economic development of non-member countries worldwide.

Policy Coordination

The organization facilitates the comparison of policy experiences and seeks collaborative solutions to common economic and social problems. It acts as a forum for coordinating domestic and international policies.

By identifying and disseminating best practices, the OECD helps member governments improve policy effectiveness across various domains, from taxation to environmental protection.

Global Trade Advancement

A fundamental goal of the OECD is to contribute to the expansion of world trade. This involves promoting open, fair, and rules-based international trade relations among its members and globally.

The organization analyzes trade policies and their impacts, advocating for liberalization and cooperation to foster global economic integration.

Organizational Framework

Member Countries

The OECD comprises 38 member countries, each represented by a delegation led by an ambassador. These representatives form the OECD Council, the organization's decision-making body.

The Council provides strategic direction and guidance, ensuring collective action on global economic and social issues.

Committees and Working Groups

Specialized committees, numbering around 200 including subsidiary bodies, oversee specific policy areas such as economics, trade, science, and finance. Committee members are typically government experts.

These committees are crucial for the OECD's analytical work, reviewing progress, developing recommendations, and producing key publications.

The Secretariat

Led by the Secretary-General, the OECD Secretariat comprises approximately 2,500 staff organized into various directorates. It provides essential support for the committees' work.

The Secretariat collects data, monitors trends, conducts analysis, and forecasts economic developments, underpinning the organization's policy recommendations.

Member Nations

Global Representation

The OECD currently includes 38 member countries, predominantly developed nations with high-income economies and advanced human development indicators.

Membership spans across Europe, North America, Asia-Pacific, and Latin America, reflecting a broad geographical and economic representation.

Australia
Austria
Belgium
Canada
Chile
Colombia
Costa Rica
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Slovakia
Slovenia
South Korea
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States

Partnerships and Accessions

Beyond its members, the OECD engages with numerous partner countries through various initiatives, including accession processes for aspiring members like Brazil, Bulgaria, Croatia, Peru, Romania, Argentina, Indonesia, and Thailand.

These partnerships aim to extend the OECD's reach and influence, promoting shared values and policy convergence globally.

Data & Publications

OECD iLibrary

The OECD is a prolific publisher, releasing hundreds of books and papers annually on diverse policy topics. All publications since 1998 are accessible via the OECD iLibrary, a comprehensive online platform.

Key publications include the "OECD Economic Outlook," "Main Economic Indicators," and various thematic reports focusing on areas like education, environment, and taxation.

Statistical Authority

Renowned as a statistical agency, the OECD provides comparable data across numerous subjects. Its statistical databases are publicly available through the OECD Data Portal, enabling users to create custom charts and analyses.

Since July 2024, all OECD data and publications are available under Creative Commons CC BY 4.0 licenses, promoting open access to information.

Interactive charts and databases on the OECD Data Portal.
Access to Excel files via StatLinks within publications.
Open access model ensuring free availability of data and publications.

Policy Guidance

The OECD develops influential guidelines and standards in critical areas like international taxation and responsible business conduct. The OECD Model Tax Convention and Transfer Pricing Guidelines are widely adopted globally.

Initiatives like the Base Erosion and Profit Shifting (BEPS) project and the two-pillar solution for international tax reform address modern challenges in corporate taxation.

Teacher's Corner

Edit and Print this course in the Wiki2Web Teacher Studio

Edit and Print Materials from this study in the wiki2web studio

Click here to open the "Oecd" Wiki2Web Studio curriculum kit

Use the free Wiki2web Studio to generate printable flashcards, worksheets, exams, and export your materials as a web page or an interactive game.

True or False?

Test Your Knowledge!

Gamer's Corner

Are you ready for the Wiki2Web Clarity Challenge?

Learn about oecd while playing the wiki2web Clarity Challenge game.

Unlock the mystery image and prove your knowledge by earning trophies. This simple game is addictively fun and is a great way to learn!

Play now

Explore More Topics

Discover other topics to study!

khaleda zia

bryan brown

fred maher

alfonso carrillo de acuña

References

OECD suspends Russia, Belarus from any participation.

Adenauer und die Hohen Kommissare, Munich 1989, p. 465. Available here.

A full list of references for this article are available at the OECD Wikipedia page

Feedback & Support

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer

Important Notice

This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is based on publicly available data and may not be entirely accurate, complete, or up-to-date.

This is not financial or policy advice. The information provided on this website is not a substitute for professional consultation regarding economic policy, international trade, or taxation. Always refer to official OECD documentation and consult with qualified professionals for specific needs.

The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided herein.

OECD Insights

💡 Dive in with Flashcard Learning! 💡

About the OECD ℹ️

🤝 Intergovernmental Forum

📈 Economic Powerhouse

🏛️ Headquarters and Reach

Historical Evolution ⏳

🌍 Origins in Reconstruction

🌐 Transformation and Expansion

Core Objectives 🎯

💰 Economic Growth & Stability

⚖️ Policy Coordination

📈 Global Trade Advancement

Organizational Framework 🏗️

👥 Member Countries

🔬 Committees and Working Groups

🧑‍💼 The Secretariat

Member Nations 🗺️

🌍 Global Representation

🔗 Partnerships and Accessions

Data & Publications 📊

📚 OECD iLibrary

🔢 Statistical Authority

📜 Policy Guidance

Teacher's Corner 🧑‍🏫

Edit and Print this course in the Wiki2Web Teacher Studio

True or False? 🤔

❓ Test Your Knowledge! ❓

Gamer's Corner 🎮

Are you ready for the Wiki2Web Clarity Challenge?

Explore More Topics

📜 Discover other topics to study!

References

📜 References

Feedback & Support 👍

To report an issue with this page, or to find out ways to support the mission, please click here.

Disclaimer ⚠️

📜 Important Notice

Dive in with Flashcard Learning!

About the OECD

Intergovernmental Forum

Economic Powerhouse

Headquarters and Reach

Historical Evolution

Origins in Reconstruction

Transformation and Expansion

Core Objectives

Economic Growth & Stability

Policy Coordination

Global Trade Advancement

Organizational Framework

Member Countries

Committees and Working Groups

The Secretariat

Member Nations

Global Representation

Partnerships and Accessions

Data & Publications

OECD iLibrary

Statistical Authority

Policy Guidance

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Disclaimer

Important Notice