Benefits of Engagement
Promoting A Level Playing Field: After WWII, U.S. leaders created the OECD to implement the Marshall Plan and set Europe on the path to integration -- ending the protectionist policies Cordell Hull and George Marshall blamed for European conflict. In the process they created a unique institution promoting an international level-playing field on which US business flourished. Today, the OECD is the "best practices club," where highest-common denominator disciplines are enforced through peer review.
- OECD export credits arrangements save taxpayers approximately $800 million annually
- OECD chemicals program creates testing standards saving taxpayers and companies over $150 million annually
- Tax instruments help protect businesses from inconsistent treatment and double taxation
Russia: The U.S. is working to bring Russia into the OECD which would include its agreeing to open investment, export-credit, anti-bribery and other disciplines.
Anti-Protectionism: With U.S. leadership, the G20 tasked the OECD, WTO and UNCTAD to monitor trade and investment policy change during the crisis to prevent protectionism. Countries participating in the OECD Freedom of Investment initiative (which together represent four fifths of the world economy) have pledged to resist discriminatory policies.
Pro-Innovation: To discourage protectionist policies, the OECD promotes investment in strong business "framework" conditions, recently releasing an innovation strategy that closely follows the U.S. innovation strategy and calls for education reform, investment in R&D, intellectual property rights, and an open Internet.
Skills: The OECD, with U.S. support, is embarking on a "skills strategy" to identify best practices for identifying demand and building supply of skilled workers for the new economy.
Anti-Corruption: The U.S. has been the prime mover behind the OECD's Anti-Bribery Convention which commits other countries to pass and implement laws like our Foreign Corrupt Practices Act. In the last year, thanks to U.S. leadership, it has produced significant results:
- The UK finally passed a strong anti-bribery law
- The OECD agreed to begin hosting prosecutors meetings and to publish a list of what countries are doing to crack down on bribery
- China and Indonesia participate as observers and Russia has said it will join.
- The US has pushed the anti-corruption agenda in the G20 - calling on G20 countries to join the anti-bribery convention.
Development: The U.S., working with the OECD and Development Assistance Committee (DAC), creates peer-to-peer learning environments in which developing countries learn market best-practices. A new U.S.-supported Task Force on Tax and Development will work with Latin American and African tax administrators.