Organisation for Economic Co-operation and Development

Economic · OECD

The name is an older one with a word struck out of it. The Organisation for European Economic Co-operation, which shared out Marshall Plan aid from 1948, was reconstituted by a convention signed in Paris on 14 December 1960 that dropped European from the title and added Development. Governments outside Europe were in from the first day, and the Council still admits one only by unanimity.

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38 countries

Common questions

Questions about OECD

What does OECD stand for?

Organisation for Economic Co-operation and Development. The title is the earlier one with a word removed and a word added: the Organisation for European Economic Co-operation, set up on 16 April 1948 to administer Marshall Plan aid, was reconstituted under the convention signed in Paris on 14 December 1960, which came into force on 30 September 1961.

How does a country join the OECD?

By invitation of the Council, which under Article 16 of the convention must decide unanimously, and then by depositing an instrument of accession with the Government of the French Republic. Before the invitation comes an accession roadmap, an initial memorandum assessing the candidate's own law and practice against OECD legal instruments, and in-depth reviews by up to 25 technical committees, each adopting a formal opinion.

How long does OECD accession take?

The published record gives a span rather than a rule. Discussions with Costa Rica opened on 9 April 2015 and its instrument of accession was deposited on 25 May 2021, with 22 committees reviewing it in between. Colombia acceded on 28 April 2020, Lithuania on 5 July 2018 and Latvia on 1 July 2016. Discussions with Argentina, Brazil, Bulgaria, Croatia, Peru and Romania opened on 25 January 2022 and remain open.

Are OECD decisions binding?

Some are. Article 5 lets the Organisation take decisions binding on all members as well as make recommendations, and Article 6 requires mutual agreement of all the members for either. A member that abstains is not bound while the act still applies to the rest, and no decision binds a member until it has complied with its own constitutional procedures.

Is the OECD a trade bloc?

No. The convention sets aims, an obligation to share information and a procedure for taking decisions, and it carries no tariff schedule, no customs union and no defence commitment. Its standards are also open to non-members: the parties to the Anti-Bribery Convention outnumber the members, and the Inclusive Framework on base erosion and profit shifting works with well over a hundred jurisdictions.

Which countries are candidates for OECD membership?

Accession discussions were opened with Argentina, Brazil, Bulgaria, Croatia, Peru and Romania on 25 January 2022, with Indonesia on 20 February 2024 and with Thailand on 17 June 2024. Opening discussions is not an invitation to accede: that decision is separate, taken by the Council by unanimity once the technical committees have given their formal opinions.

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