The Organisation for Economic Co-operation and Development (OECD) is made up of 37 member nations that come together to talk about and create economic and social policies. OECD members are usually democratic nations that back free-market economies.
Learn more about OECD
The OECD is often called a think tank or a monitoring group. Its main aim is to create policies that promote prosperity, equality, opportunity, and well-being for everyone. Over the years, it has tackled various issues, such as improving living standards in member countries, boosting world trade, and encouraging economic stability.
Founded on December 14, 1960, the OECD started with 18 European countries, along with the United States and Canada. It has since grown to include members from South America and the Asia-Pacific region, representing most of the world’s highly developed economies.
In 1948, after World War II, the Organisation for European Economic Co-operation (OEEC) was set up to manage the mainly U.S.-funded Marshall Plan for post-war reconstruction in Europe. The group highlighted the need for collaboration in economic development to prevent further decades of conflict in Europe. The OEEC played a key role in assisting the European Economic Community (EEC), which later transformed into the European Union (EU), in creating a European Free Trade Area.
In 1961, the OECD articles from the December 1960 convention came into force, and the United States and Canada joined the European members of the OEEC, which then rebranded itself as the OECD to reflect its wider membership. The organization is based in the Chateau de la Muette in Paris, France.
The OECD puts out economic reports, statistical databases, analyses, and forecasts about global economic growth. These reports can focus on global, regional, or national levels. The organization looks into social policy issues—like how gender discrimination affects economic growth—and offers policy suggestions aimed at promoting growth while being mindful of environmental concerns. They also work to combat bribery and other financial crimes around the globe.
The OECD has a so-called “black list” of countries deemed uncooperative tax havens, but as of now, there are no countries on that list since by 2009, all the original countries had agreed to follow the OECD’s transparency standards. The OECD is spearheading an initiative with the G20 nations to push for tax reform globally and to put an end to tax avoidance by profitable companies. Their project estimates that this avoidance costs the world between $100 billion and $240 billion in lost tax revenue each year. Additionally, the group offers consulting help and support to countries in Central Asia and Eastern Europe that are working on market-based economic reforms.