The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental body headquartered at the Château de la Muette in Paris. It evolved from the Organisation for European Economic Co-operation (OEEC), which was established in 1948 to administer Marshall Plan aid. The OECD itself was created by the Convention on the OECD, signed on 14 December 1960 and entering into force on 30 September 1961, when the United States and Canada joined the European founders.
Membership has grown from the original 20 signatories to include most high-income democracies across Europe, the Americas, and the Asia-Pacific, with accession conditional on commitments to market economies, pluralist democracy, and respect for human rights. Recent accessions include Colombia (2020) and Costa Rica (2021), and active accession discussions cover countries such as Brazil, Argentina, Bulgaria, Croatia, Peru, and Romania.
The OECD operates through specialised committees and directorates that produce comparative data, peer reviews, and soft-law instruments. Notable outputs include:
- The OECD Guidelines for Multinational Enterprises (first adopted 1976, most recently updated 2023).
- The Anti-Bribery Convention (1997), which criminalises bribery of foreign public officials.
- The PISA assessment of student performance, administered every three years since 2000.
- The Inclusive Framework on BEPS, including the two-pillar global tax deal endorsed in October 2021 by over 130 jurisdictions, introducing a 15% global minimum corporate tax.
The Secretary-General, elected by the Council, leads the Secretariat; Mathias Cormann of Australia took office on 1 June 2021. Decisions in the Council generally require consensus among members.
While the OECD lacks the binding enforcement powers of bodies like the WTO or IMF, its influence stems from rigorous statistical work, peer pressure through country reviews, and standard-setting that frequently shapes domestic regulation. Critics describe it as a "rich countries' club," though the organisation has expanded outreach via Key Partners (Brazil, China, India, Indonesia, South Africa) and regional programmes.
Example
In October 2021, OECD members and the broader Inclusive Framework endorsed a two-pillar agreement establishing a 15% global minimum corporate tax, later implemented through EU and domestic legislation.