Organization for Economic Cooperation and Development (OECD)

The Organisation for Economic Co-operation and Development (OECD) is an international body composed of 38 countries committed to democracy and market economies. Its headquarters are in Paris, France. The fundamental aim of the OECD is to promote the economic development of its member countries, increase employment, raise living standards, maintain fiscal stability, contribute to the economic development of other nations, and support growth in global trade.

The predecessor of the OECD was the Organisation for European Economic Co-operation (OEEC), established in 1947 under the Marshall Plan to distribute aid from the United States and Canada to European countries. This structure was designed to support the reconstruction of Europe after the Second World War. In 1961, the OEEC’s mandate and scope were expanded, leading to the creation of the OECD. With this reorganization, countries outside Europe joined the organisation, transforming the OECD into a global platform for economic cooperation.

The core functions of the OECD can be summarised as follows:

• Support sustainable economic growth
• Increase employment
• Raise living standards
• Ensure fiscal stability
• Provide economic development support to developing countries
• Contribute to the expansion of global trade

In addition, the OECD provides a platform where governments can compare policy experiences, seek solutions to common problems, identify good practices, and develop high standards of economic policy.

The Organisation for Economic Co-operation and Development (OECD) is an international organisation with a multi-layered structure. Its framework consists of decision-making mechanisms shaped by member states, as well as various expert committees, a secretariat, and affiliated agencies. The primary purpose of this structure is to provide a functional and coordinated system to promote economic cooperation, policy alignment and information sharing.

The Council, the highest decision-making body of the OECD, is composed of representatives from member states. Each member country appoints one representative, typically its permanent representative in Paris. The Council also meets periodically at ministerial level. All decisions are made by consensus. The Council’s responsibilities include setting the overall strategic direction, approving the budget, and evaluating new membership applications.

Approximately 300 committees, working groups and expert bodies operate under the Council, conducting technical-level work across a wide range of economic and social policy areas. These units are composed of experts from member countries and produce policy analysis and recommendations on issues such as labour, trade, education, the environment, science and technology.

The OECD Secretariat is the technical and administrative unit responsible for the organisation’s day-to-day operations. It is headquartered in Paris. Under the leadership of the Secretary-General, the Secretariat conducts research, collects data, prepares reports and supports the work of the committees. The Secretariat comprises approximately 3,500 staff members, including experts from various member countries.

The Secretary-General is elected by the Council for a five-year term and is responsible for the administrative and representative functions of the OECD. The Secretary-General implements the Council’s decisions and oversees the management of the Secretariat. The Secretary-General also manages the organisation’s relations with the public and international stakeholders.

The OECD structure includes affiliated agencies such as the International Energy Agency (IEA) and the Nuclear Energy Agency (NEA). These agencies provide technical and institutional support to the OECD’s work in energy policy and nuclear energy.

Through this structure, the OECD conducts multilateral policy dialogue, information exchange and standard-setting processes among its member countries.

The OECD was established in 1961 and currently has 38 member countries. Member states include nations from Europe, North and South America, Asia and Oceania. Some countries, listed by date of accession, are as follows:

• Founding members: Canada (10 April 1961), France (7 August 1961), Germany (27 September 1961), United Kingdom (2 May 1961), Türkiye (2 August 1961)
• Later members: Japan (1964), Finland (1969), Australia (1971), Mexico (1994), Korea (1996), Czech Republic (1995), Estonia (2010), Colombia (2020), Costa Rica (2021)

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Member countries have equal voting rights in the OECD Council. Decisions are made by consensus, and each country has an equal voice in shaping the organisation’s policies. The membership application process includes technical assessments, policy reviews and approval by existing members.

The process for joining the OECD begins with negotiations opened by the OECD Council and proceeds according to a defined roadmap, evaluating candidate countries’ capacity to align with OECD legal frameworks and their policy and practice standards. This process involves developing and implementing recommendations to help candidate countries meet OECD standards and best practices.

The following countries are currently undergoing the OECD accession process:

• Argentina
• Brazil
• Bulgaria
• Croatia
• Indonesia
• Peru
• Romania
• Thailand

The accession roadmap includes comprehensive technical assessments of the candidate country’s legislation and practices in relevant policy areas, conducted by OECD committees. At the end of the process, concrete recommendations are provided to ensure compliance, and implementing these recommendations is a fundamental requirement for full OECD membership.

To enhance global economic cooperation, the OECD has established “key partner” relationships with several major countries. Key partners participate in OECD’s daily working processes, contribute to research, are included in statistical databases, and engage in policy discussions within committees. This cooperation aims to strengthen the integration of these countries into OECD standards and policy dialogues.

OECD’s key partners include:

• Brazil
• China
• India
• Indonesia
• South Africa

These countries maintain close ties with the OECD and play significant roles in international policy dialogue.

The OECD is involved in various regional initiatives to promote inclusive and balanced economic development globally. These initiatives aim to strengthen cooperation with non-member countries, support reforms and promote good governance practices. Through setting common policy priorities, building capacity and providing technical assistance, these initiatives contribute to the development processes of countries in the respective regions.

The OECD’s regional initiatives cover the following geographic areas:

• Latin America and the Caribbean
• Middle East and North Africa (MENA)
• Southeastern Europe
• Eurasia (Eurasia)
• Southeast Asia (including ASEAN countries)
• Africa (Africa Initiative)

OECD members are predominantly high-income countries that join the organisation based on commitment to democratic governance and market economies. Common characteristics include:

• Democratic political systems
• Structures based on market economies
• High living standards
• Socioeconomic development
• Advanced public services in education, health and infrastructure
• Institutionalised structures for statistics, policy monitoring and analysis

There is no single common currency among OECD member countries. Each member uses its own national currency. However, OECD members within the Eurozone, such as Germany, France, Italy, use the euro (EUR) as their common currency. Although the OECD develops common economic policies, there is no monetary union.

Today, the OECD is a globally influential platform for evidence-based policy development, data collection and analysis, economic research and the formulation of reform recommendations. Member states are encouraged to cooperate under principles of mutual accountability and transparency. Major economies such as the United States engage under the OECD umbrella in areas such as budget discipline, transparency and responsiveness to member priorities.