OECDOrganisation for

Economic Co-operation

and Development

G.H. PATEL POSTGRADUATE INSTITUTE OF BUSINESS MANAGEMENTSardar Patel University

January 3, 2011

Presented To:

Dr. Yogesh C. Joshi

Presented by:

Jaymin Mehta(09M16) Jignesh Khadela(09F17)

Mayank Rathore(09M23) Pradeesh Krishnan(09M28)

• To study the evolution of OECD.• To know the member countries of OECD. • To study the organizational structure and working pattern of OECD.• To know the role and functions of OECD.• To study how OECD impacts international trade and its relevance in

present day scenario.• To know about achievements, challenges and its future potential.

OBJECTIVES OF OUR STUDY

INTRODUCTION

• OECD is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade.

• OECD defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seeking answers to common problems, identifying good practices, and co-ordinating domestic and international policies of its members.

• The OECD originated in 1948 as the Organization for European Economic Co-operation (OEEC), led by Robert Marjolin of France, to help administer the Marshall Plan for the reconstruction of Europe after World War II. Later, its membership was extended to non-European states.

• In the 1950s the OEEC provided the framework for negotiations aimed at determining conditions for setting up a European Free Trade Area, to bring the European Economic Community of the six and the other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency was set up under the OEEC.

• Following the 1957 Rome Treaties to launch the European Economic Community, the Convention on the Organization 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• The Convention was signed in December 1960 and the OECD officially superseded the OEEC in September 1961.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, with Japan joining three years later.

• During the next 12 years Finland, Australia, and New Zealand also joined the organization. Yugoslavia had observer status in the organization starting with the establishment of the OECD until its dissolution.

EVOLUTION OF OECD

OECD’S MISSION

Article 1 of the OECD Convention defines the Organisation’s mission as being to:

• Support economic growth• Boost employment • Raise living standards • Maintain financial stability• Assist other countries’ economic development • Contribute to growth in world trade

Global partners

34 member countries

AUSTRALIAAUSTRIA BELGIUM CANADA CHILE

CZECH REPUBLIC DENMARK ESTONIA

FINLAND FRANCE GERMANY GREECE HUNGARY ICELAND IRELAND ITALY JAPAN

KOREALUXEMBOURGMEXICONETHERLANDSNEW ZEALANDNORWAYPOLANDPORTUGALSLOVAK REPUBLICSPAINSOUTH KOREA

SWEDENSWITZERLANDTURKEYTRIESTE

UNITED KINGDOMUNITED STATES

• Countries invited to membership talks

CHILEESTONIAISRAELRUSSIASLOVENIA

• Enhanced engagement BRAZILCHINAINDIAINDONESIASOUTH AFRICA

WHO DRIVES OECD’S WORK?

CouncilOversight and strategic direction

Representatives of member countries and of the European Commission; decisions taken by consensus

CommitteesDiscussion and implementation

Representatives of member countries and of invited non-members work with the OECD Secretariat on specific issues

SecretariatAnalysis and proposals

Secretary-GeneralDeputy Secretaries-GeneralDirectorates

OECD’s WAY OF WORKING

OECD’S WAY OF WORKING• OECD's work is based on continued monitoring of events in member

countries as well as outside OECD area, and includes regular projections of short and medium-term economic developments. 

• The OECD Secretariat collects and analyses data, after which committees discuss policy regarding this information, the Council makes decisions, and then governments implement recommendations.

Peer reviews• Mutual examination by governments, multilateral inspection and a peer

review process through which the performance of individual countries is monitored by their peers, all carried out at committee-level.

MAJOR WORK AREAS

Employment, education, social welfare

• Ensure equal access to education for all

• Promote effective and accessible health systems

• Fight social discrimination and unemployment

• Bridge the gap between rich and poor

Economy• Analyse and publish comparative data

• Produce forecasts

• Develop policies for growth and stability

• Foster open markets

• Promote cross-border investment

• Share best practices

• Study how international development co-ordination helps developing countries

• Offer knowledge and experience to help countries or regions in the process of development

….cont

Environment, sustainable development

• Bring together member countries to discuss fundamental energy issues through the international energy agency (IEA) and the nuclear energy agency (NEA)

• Make markets work for a healthier environment

• Use science and technology to benefit people everywhere

• Cut wastage and pollution

….cont

Finance• Promoting liberalisation in financial services and the development

of international financial best practices

• Working to promote investment policy reform and international co-operation

• Analysing national tax systems and their impact on labour, capital and product markets

• Studying the consequences of ageing populations and their implications for insurance and pensions

….cont

Governance• Promote effective public administration

• Encourage companies to run their affairs better

• Ensure transparent and fair tax systems

• Foster fair competition

• Fight corruption

• Promote high ethical standards

• Encourage citizen-participation in policy-making

….cont

Innovation• Improving understanding of member countries for how

information and communications technologies (ICT) contribute to sustainable economic growth and social well-being and their role in the shift towards knowledge-based societies

• Development of indicators to benchmark countries' innovation performance

• A strong record on biotechnology-related topics through work that spans more than 25 years

….cont

FUNCTIONS OF OECD

• Provides a platform for the governments of member nations.

• Monitors economic trends relating to trade, technology, environment, taxation and agriculture.

• It also forecasts economic development and conducts in-depth analysis .

• Publishes its economic statistics and other intellectual findings both online and offline.

• Offers peer reviews to member nations about their performance.

• Offers expertise and ideas to over 100 non-member countries for their economic development.

ROLE OF OECD

• Anticipating problems.

• Taking advantage of new technology.

• Providing guidelines for Managing conflicts of interest.

• Anti-Bribery Convention of Foreign Public Officials.

• Enhance technical cooperation in Central and Eastern countries.

• Safeguarding values while adapting to change.

• Empowering public servants and citizens to report misconduct.

• Defining a clear public service mission.

• Development Assistance Committee

IMPACT OF OECD ON INTERNATIONAL TRADE

• World merchandise trade is dominated by OECD countries. OECD merchandise trade is basically concentrated in manufactures, and it is now more of the "intra-industry" type.

• The OECD area dominates world trade in merchandise, accounting for about two thirds of world imports and exports.

• The regulatory framework for foreign direct investment (FDI) has also liberalized in OECD countries.

• Intra-regional trade between countries in the European region has grown faster than trade between Europe and other OECD countries.

• NON-OECD REGIONS‘ shares in world imports and exports, is around 30-35 per cent(as on 2008), there has been a major redistribution of both exports and imports among them.

• Non-OECD exports consisted mainly of primary commodities, and in particular of oil, until the mid-1980s, but manufactured goods now account for more than 60 per cent of the total.

• As new financial centres have emerged, trade in "other" private services has also increased in the non-OECD area since the late 1980s, but their share in non-factor services has remained well below that of OECD countries (for example, South-East Asian countries' shares amounted to 19 per cent in 2010)

• Non-OECD manufactured imports have risen as rapidly as manufactured exports. The largest increase in demand for foreign goods emanated from South-East Asia.

• Over the past decade or so, South-East Asian countries have been the largest non-OECD recipients of FDI flows, mainly from Japan. These FDI inflows have played a major role in facilitating technology transfer and development.

KEY FACTS OF OECD

Two official languages:

English & French

Secretariat staff: more than 2500

OECD’s headquarters are located

in Paris, France

OECD’s Secretary-General is

Mr. Angel GurríaOECD’s

total budget is € 342.9 million

(2008)

As on 2008

ACHIEVEMENTS OF OECD

The main highlights of the OECD are:

• Shifted to ‘Think global, act local.

• Major publications include the OECD Economic Outlook, OECD Fact book, OECD Economic surveys and ‘Going for Growth.

• Continued focus on economic growth through innovation.

CHALLENGES OF OECD

• Improve data collection methods.

• Reduce costs to improve prevailing environmental conditions.

• Balancing global economic growth.

OECD COMMUNICATIONS• Publications (over 250 titles per year)• A regularly updated website (statistics, data, studies…)• A corporate magazine OECD observer.• Radio and TV studios.• An annual civil society forum.• OECD centres (Berlin, Mexico City, Tokyo And

Washington) which organise events to disseminate OECD’s Works.

PUBLICATIONS

OECD publications are a prime vehicle for disseminating the Organisation's intellectual output. OECD publishes regular outlooks, annual overviews and comparative statistics. Among them:

•OECD Economic Outlook assesses prospects for member and major non-member economies.

•OECD Factbook is a key reference tool for everyone working on economic and policy issues.

•OECD Economic surveys provide individual national analyses and policy recommendations.

•Going for Growth presents comparative indicators and evaluations of national performance.

FOR MORE INFORMATION

www.oecd.org

References mentioned in the presentation: www.oecd.org/powerpointreferences