Organisation for Economic Co-operation and Development (OECD)

Background and Objectives

Formally established in 1960 as the successor of the Organisation for European Economic Co-operation, the OECD focuses on supporting member-countries to foster sustainable economic growth and to maintain financial stability. Furthermore, the organization aims at expanding world trade while mapping out solutions to a diverse set of social and environmental challenges. Following the post-Cold War transformation, the OECD has pursued a policy of active engagement with a selected group of nonmembers, which corresponds to its maxim of disseminating market economic principles and managing the challenges of an increasingly globalized economy.

The organization pursues its missions by (a) providing information; (b) acting as a forum for consultations, informal negotiations, and participation; and (c) coordinating policy implementation.

History

The OECD's history has not always been smooth. Yet, as Richard Woodward illustrates, the organization has gone through both a functional expansion and an increased role in the post-1990 world order.

Organizational Structure and Activities

To pursue its role as catalyst and analyst of transnational information and knowledge, the OECD relies on its analytic and planning capability, which allows the organization to conceptualize and frame new issues or policies. Thus, the OECD is able to exert influence at three levels: international organizations and knowledge networks, national governments and bureaucracies, and the (mostly national) public.

The research activity rests mainly within the OECD Secretariat and its staff of 2,500 experts. Some 250 committees, where member-states’ senior officials meet to discuss, review, and contribute to the research work undertaken by the secretariat, build the second pillar of the OECD's triangular organizational structure. However, the council reflects most prominently the member-driven nature of the organization. Comprised of one permanent representative of each member-state plus the representative of the European Commission, the council is solely vested with decision-making power and the locus of mutual examinations by governments as well as multilateral surveillance and peer review processes.

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