Full-Form of OECD (Organization for Economic Co-operation & Development)
The full form of OECD stands for Organization for Economic Co-operation and Development. It is an international organization consisting of 36 member countries formed for the purpose of economic development and encouraging word trade by making necessary policies.
- In the year 1948, an organization named Organization for European Economic Co-operation was set up in order to administer the Marshall Plan, and the same was headed by Robert Marjolin of France. It was set up post World War-II and it placed importance on working as a group for the economic development of the European nations.
- In the year 1961, Organization for Economic Co-operation and Development was reformed and renamed as OECD (Organization for Economic Co-operation and Development) and the membership no more remained limited to the European States and was allowed to the Non-European States also. The headquarter of the Organization for Economic Co-operation and Development is located in Paris, France at Chateau de la Muette. The member countries make contributions to the Organization for Economic Co-operation and Development.
- The main objective of OECD is to promote global trade and work towards sustainable economic growth.
- To improve the standard of living of people living in member countries.
- To maintain financial stability.
- To contribute to the development of the world economy.
Organizational Structure of OECD
#1 – Member Countries
At present, there are 36 member countries. Each member is represented by the ambassador who leads the delegation. Collectively the ambassadors constitute the Council. They are responsible for decision making and setting up goals for the organization.
#2 – Committees
There are committees working for each work area of the Organization for Economic Co-operation and Development. The members of the committee are normally experts from governments of the member as well as non-member countries. Committee holds meetings to have a discussion over various topics such as economy, trade, investment, etc.
#3 – Secretariat
It is responsible for extending support to the committees and is led by Secretary-General and assisted by directorates. The members of this tier include economists, lawyers and other professionals, and they are responsible for the collection and analysis of data.
- To publish and thereby keep updated the model tax convention for the purpose of allocating taxation rights among the tax jurisdictions in case of cross-border transactions and to provide for avoidance of double-taxation. OECD apart from the model conventions also publishes commentaries to the model convention for detailed interpretation by the member countries or the observer countries. It has also been publishing transfer pricing. Recently, OECD also came up with BEPS action plans.
- It maintains an online database of published books, reference material, reports, and other relevant information.
- This also publishes books on a frequent basis which are up-to-date. Mostly, the books are published in two languages, English and French. The organization also takes responsibility for releasing working papers and reference works.
- It indulges in the publishing of magazines, OECD Observer being an award-winning published magazine by Organization for Economic Co-operation and Development. The magazine versions are updated on a regular basis to keep them up-to-date.
- This also carries out statistical research and publishes the result thereby on a number of subjects. The results are published on the OECD data portal.
- To carry out peer review wherein the member countries supervise the performance of other member countries.
- To establish policies and rules in respect of matters such as trade, investment, corruption, etc.
- It provides a great platform for countries to discuss universal problems and reach common solutions for the same. It works with the objective of sustainable economic growth and continues to contribute to economic development and improved living standards.
- It works towards the development of international practices and finding solutions to various economic, social and environment-related issues, by working with the governments, lawmakers or the policymakers as well as citizens.
This has been a guide to the Full Form of OECD & its Definition. Here we discuss the history of the Organization for Economic Co-operation and Development, objectives along with organizational structure and functions. You may refer to the following articles to learn more about finance –