The organization for Economic Cooperation and Development (OECD) or OCDE in French is an inter-governmental organization with a membership of 36 countries around the world and has its headquarters in Château de la Muette in Paris, France. The organization was established to stimulate economic growth, develop world trade for the countries which identify themselves as democratic with market-oriented economies. The organization also provides a platform for comparing experiences in different policies, looking for solutions to different problems, coordinating both international policies and domestic policies for the member countries, and identifying the best practices. The majority of OECD member countries are categorized as high-income nations often known as the developed economies. The organization is funded through the contributions from the member countries. As of 2017, and it had a total budget of 324 million Euros. Collectively, all the OECD countries in 2017 accounted for 62.2% of the world's nominal GDP.
History Of OECD
The predecessor of the OECD is the Organization for European Economic Cooperation (OEEC), which was founded in 1948. Initially, the organization was to run the Marshall Plan, which was financed by the US for the reconstruction of Europe following the ravages of the Second World War. As a result, different countries realized how their economies were interdependent, and it ushered in a new era of cooperation, which changed the face of Europe. The US and Canada joined the OEEC after they were encouraged by the success and prospects of carrying forward its work on a global scale. OECD was established on December 14th, 1960, after the US and Canada joined and signed the new convention. On September 30th, 1961, the OECD was officially launched when the convention took effect. Japan joined the OECD in 1964, and over the years several other countries have joined making the membership today at 36 countries around the world.
Presently, OECD countries account for about 63% of the global GDP and about 3/4 of the global trade. OECD countries also account for 95% of the global official development assistance and more than half of the energy consumption in the world. Approximately 18% of the world population resides in OECD countries. OECD with its sister agencies like the Nuclear Energy Agency (NEA) and the International Energy Agency (IEA) has significantly contributed to helping many countries around the world to enjoy the benefits and face the global economic challenges. They work towards these goals by promoting sound policies on energy that enhance economic growth and ensure energy security, while at the same time reducing environmental impacts.
Other Functions Of OECD
The OECD maintains statistical databases, and it analyses, forecasts, and publishes economic reports on global economic growth. These reports are national, regional, and global. The organization also analyzes and publishes reports on the effects of social issues such as the effect of gender discrimination on economic growth. They also make policy recommendations aimed to foster growth with considerations on conserving the environment. OECD has also addressed issues of bribery and other financial crimes and makes recommendations on how to eliminate the vice.
About the Author
Benjamin Elisha Sawe holds a Bachelor of Arts in Economics and Statistics and an MBA in Strategic Management. He is a frequent World Atlas contributor.
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