Organization for Economic Cooperation

and Development (OECD)

Plan:

• 1. The purposes and structure of the OECD;

• 2. The main organs;• 3. The mechanism and functions;• 4. History of main tasks;

• The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.

• The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. We work with governments to understand what drives economic, social and environmental change. We measure productivity and global flows of trade and investment. We analyse and compare data to predict future trends. We set international standards on a wide range of things, from agriculture and tax to the safety of chemicals.

• Drawing on facts and real-life experience, we recommend policies designed to improve the quality of people's lives. We work with business, through the Business and Industry Advisory Committee to the OECD, and with labour, through the Trade Union Advisory Committee. We have active contacts as well with other civil society organisations. The common thread of our work is a shared commitment to market economies backed by democratic institutions and focused on the wellbeing of all citizens. Along the way, we also set out to make life harder for the terrorists, tax dodgers, crooked businessmen and others whose actions undermine a fair and open society.

History of the OECD

• The Organisation for Economic Co-operation and Development (OECD) celebrated its 50th anniversary, but its roots go back to the rubble of Europe after World War II. Determined to avoid the mistakes of their predecessors in the wake of World War I, European leaders realised that the best way to ensure lasting peace was to encourage co-operation and reconstruction, rather than punish the defeated.

• The Organisation for European Economic Cooperation (OEEC) was established in 1948 to run the US-financed Marshall Plan for reconstruction of a continent ravaged by war. By making individual governments recognise the interdependence of their economies, it paved the way for a new era of cooperation that was to change the face of Europe. Encouraged by its success and the prospect of carrying its work forward on a global stage, Canada and the US joined OEEC members in signing the new OECD Convention on 14 December 1960.  The Organisation for Economic Co-operation and Development (OECD) was officially born on 30 September 1961, when the Convention entered into force.

• Other countries joined in, starting with Japan in 1964. Today, 34 OECD member countries worldwide regularly turn to one another to identify problems, discuss and analyse them, and promote policies to solve them. The track record is striking. The US has seen its national wealth almost triple in the five decades since the OECD was created, calculated in terms of gross domestic product per head of population. Other OECD countries have seen similar, and in some cases even more spectacular, progress.

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• So, too, have countries that a few decades ago were still only minor players on the world stage. China, India and Brazil have emerged as new economic giants. Most of the countries that formed part of the former Soviet bloc have either joined the OECD or adopted its standards and principles to achieve our common goals. Russia is negotiating to become a member of the OECD, and we now have close relations with Brazil, China, India, Indonesia and South Africa through our “enhanced engagement” programme. Together with them, the OECD brings around its table 40 countries that account for 80% of world trade and investment, giving it a pivotal role in addressing the challenges facing the world economy.

Council• Decision-making power is vested in the

OECD Council. It is made up of one representative per member country, plus a representative of the European Commission. 

The Council meets regularly at the level of permanent representatives to OECD and decisions are taken by consensus. These meetings are chaired by the OECD Secretary-General. The Council also meets at ministerial level once a year to discuss key issues and set priorities for OECD work. The work mandated by the Council is carried out by the OECD Secretariat.

Committees• Representatives of the 34 OECD member

countries meet in specialised committees to advance ideas and review progress in specific policy areas, such as economics, trade, science, employment, education or financial markets.

There are about 250 committees, working groups and expert groups. Some 40 000 senior officials from national administrations go to OECD committee meetings each year to request, review and contribute to work undertaken by the OECD Secretariat. Once they return home, they have online access to documents and can exchange information through a special network.

Secretariat• Angel Gurría heads the OECD

Secretariat and is assisted by one or more Deputy Secretaries-General. Mr Gurría also chairs the Council, providing the link between national delegations and the Secretariat.

The Secretariat in Paris is made up of some 2 500 staff who support the activities of committees, and carry out the work in response to priorities decided by the OECD Council. The staff includes economists, lawyers, scientists and other professionals. Most staff members are based in Paris but some work at OECD centres in other countries.

How we are funded

• OECD is funded by its member countries. National contributions are based on a formula which takes account of the size of each member's economy. The largest contributor is the United States, which provides nearly 22% of the budget, followed by Japan.

Countries may also make voluntary contributions to financially support outputs in the OECD programme of work.

• How the budget is managed• The size of OECD's budget and its

programme of work are determined on a two-year basis by member countries. The Organisation's planning, budgeting and management are all organised on a results-based system.

Independent external auditing of the Organisation’s accounts and financial management is performed by a Supreme Audit Institution of an OECD member country, appointed by the Council.

• Unlike the World Bank or the International Monetary Fund, OECD does not dispense grants or make loans.

• Remuneration of Secretary-General and Deputy Secretaries-General

• In 2013 the basic salary of the Secretary-General was EUR 206,410 per annum. The basic salary of the Deputy Secretaries-General was EUR 182,000 per annum. Basic salaries are subject to deductions in respect of contributions to the pension, medical and accident insurance schemes.

• These officials, as other staff, may also be entitled to certain allowances such as household, child, dependent and expatriation allowance, eligibility for which depends on individual circumstances and in accordance with the Conditions of Employment of the Staff of the Organisation. See the Financial Statements of the OECD for additional information. Information on the salaries and benefits applicable to OECD staff is available through the link provided below.

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