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 to develop and encourage 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 Robert Marjolin of France headed the same. 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, the Organization for Economic Co-operation and Development was reformed and renamed as OECD (Organization for Economic Co-operation and Development). The membership no more remained limited to the European States and was allowed to the Non-European States also. The Organization for Economic Co-operation and developments headquarter 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. Apart from the model conventions, the OECD also publishes commentaries to the model convention for detailed interpretation by the member countries or the observer countries. It has also been publishing transfer pricingTransfer PricingTransfer pricing is determined for the transactions between two or more related entities within a multi-company organization. It shows the value of transfer between the associated entities in terms of goods or transfer of employees, labours across different departments.. 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 frequently, 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 publishing 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 Organization for Economic Co-operation and Development history, objectives, and organizational structure and functions. You may refer to the following articles to learn more about finance –