The OECD was formed in 1961 to promote economic stability and democracy in member countries and developing countries. It collects and publishes statistics on social and economic issues, drafts international recommendations, and influences foreign policy. The group also focuses on sustainable development and encourages corporate responsibility and high environmental standards. Its recommendations are not binding and may not be accepted by all countries.
The Organization for Economic Development (OECD) was formed in 1961 as an extension of the Organization for European Economic Cooperation (OEEC). The OEEC developed strategies for the restructuring of Europe after the Second World War. The OECD has expanded its scope and has included not only European countries, but also Canada, Mexico, Australia, New Zealand, Japan, Korea and the United States.
The OECD’s goals are to promote economic stability and democracy in its member countries and in developing countries. One of the main methods it uses to analyze countries is the collection and publication of statistics on social and economic issues. These statistics are reviewed by governments and at OECD meetings to address how best to advance the organization’s goals.
The OECD advisors are composed of representatives of member countries. These representatives draft international recommendations or agreements on various issues. For example, in 2006, the organization made strong recommendations to countries to adopt anti-spam policies, encouraging nations to educate both the public and industries to reduce Internet spam.
At the same meeting in 2006, the OECD discussed and discussed the economic future and potential of non-member China and recommended that China allow more foreign investment, often hampered by Chinese laws. The OECD’s analysis of this issue suggests that more foreign investors would boost China’s economic growth while fostering good relations between China and other countries. Member countries of the organization report these recommendations to their governments and often these recommendations influence foreign policy.
The group also has influence on the issue of sustainable development. The OECD seeks solutions that enable current economic growth without negatively impacting economic growth and the survival of future generations. Through statistical analysis and discussion, it can draft agreements, or at least strongly encourage corporate responsibility or high environmental standards and policies. It can also survey developing countries to see if they are progressing along sustainable lines. These countries can be offered education and recommendations which, if agreed, will further OECD goals.
Not all OECD advice is accepted and some is harshly criticized. Recommendations and agreements are not binding on either member countries or third countries. The organization often fails to find approval from governments that oppose democracy and capitalism. Often, however, the OECD continues to recommend and lobby governments it deems irresponsible in their policies. This can be an effective method for ultimately achieving group goals.
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