OECD – Organisation for Economic Co-operation and Development

The OECD (Organisation for Economic Co-operation and Development) is an intergovernmental economic organisation composed of the 30 highest developed industrial nations. It is based on the Paris Convention of 14 December 1960 and grew out of the Organisation for European Economic Co-operation (OEEC), which was formed to administer aid under the Marshall Plan for the reconstruction of Europe after World War II. Apart from the 14 current EU Member States (except for Finland), the organisation’s founding members were Switzerland, Norway, Iceland, Turkey, Canada and the USA. Austria, a founding member, has its own representation at the Organisation’s headquarters, which deals with all matters relating to Austria on the spot. Chile, Slovenia, Estonia and Israel became members of the Organisation in 2010.

In the beginning the OECD was a classical association of “first world“ countries, mainly concerned with coordinating its member states’ economic policy, but even in these early years part of its work was already dedicated to development cooperation. Globalisation, the economic strengthening of numerous threshold countries and the collapse of the planned economies in the former Eastern Bloc countries also lead to a change in the Organisation’s role and self-image, in that it started to open itself for cooperation with non-member states. In the course of the Central and Eastern European countries’ transition to market economies it played an important role as advisor and communicator of specialised economic policy knowledge. At the same time the OECD established ties with non-member states from other parts of the world. Special country-specific cooperation programmes have been set up with Russia, China and Brazil, while regional cooperation programmes on core issues of economic policy are underway with the Baltic Republics, South-East Europe, the Eastern European and Central Asian transition economies, the emerging Asian countries and Latin America. Since 2008 the OECD has been an active participant in G8 and G20 meetings and summits, providing analysis, data and policy recommendations on virtually all the issues being tackled. 

The most powerful body of the Paris-based organisation is the Council of the Permanent Delegations of the OECD Member States (OECD Council), which generally meets at the heads of missions level and once a year at the ministerial level. Decisions and recommendations must be adopted unanimously. Regular exchanges of views and information between the member states’ representatives take place within the approximately 200 committees and working and experts groups, which cover all aspects of economic policy in the broadest sense. Although multi-lateral conventions and agreements are concluded within the framework of the OECD, the essential hallmarks of the organisation’s work are not binding regulations but informal peer pressure and recommendations to the member states. The administrative work is undertaken by the approximately 2,300 staff of the International Secretariat, directed by a Secretary-General who is appointed for a period of five years. Since 2006 the Mexican Angel Gurria has held the office of Secretary-General. The OECD’s specialised organisations are the International Energy Agency (IEA) and the Nuclear Energy Agency (NEA).

The goals the OECD has set itself include ensuring optimum economic development and employment situations in its member states and contributing to raising the standard of living, social cohesion, political stability and the development of the global economy based on market economy principles. As the world economy is becoming increasingly networked, the OECD, too, is being progressively globalized through an intensification of dialogue and outreach activities.

In Austria matters relating to the OECD are coordinated by the Federal Chancellery (Bundeskanzleramt, BKA), which also represents Austria’s position with respect to general organisational and inter-departmental issues. It thus represents Austria vis-à-vis the OECD Council and is involved in the preparation of the annual OECD Council of Ministers meetings and the annual country review. Virtually all federal ministries are affected by the OECD’s work programme and represent the Austrian position in the relevant committees and working groups. Austria´s priorities within the OECD are mainly focused on climate protection, fight against the economic crisis, migration and education.

The OECD regularly publishes studies and analyses on economic policy topics, the best known of which are the OECD Economic Outlook published twice a year and its regular reviews of the member states’ economies. A summary of the latest report on Austria can be downloaded from the homepage of the Austrian Federal Chancellery. The entire report can be viewed (against payment) at the OECD homepage; for the printed version, please contact the OECD office.