The United States is a member of the Organization for Economic Cooperation and Development, which is an international organization composed of 36 member states with market-based economies.
Shared goals include achieving sustainable economic growth and employment and a rising standard of living in member countries as well as engaging with non-members to contribute to the development of the world economy.
Through its cross-country economic research, “soft law,” and effective peer reviews, the OECD is a dynamic international incubator for new ideas, providing the United States an opportunity for engaging with other countries on economic policy.
Headquartered in Paris, France, the OECD was established in 1961 as the successor to the Organization for European Economic Cooperation (OEEC), created to implement the Marshall Plan in the wake of World War II. The OEEC was established as a permanent organization to continue work on a joint recovery program and in particular, to distribute Marshall Plan aid throughout Europe. In September 1961 the OEEC was superseded by the OECD, becoming a world-wide body.
What is the OECD?
The Organization for Economic Cooperation and Development (OECD) is a unique forum where the governments of 36 member states with market economies work with each other, as well as with more than 70 non-member economies to promote economic growth, prosperity, and sustainable development.
The Organization provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and coordinate domestic and international policies.
For more than 50 years, the OECD has been a valuable source of policy analysis and internationally comparable statistical, economic and social data.
Over the past decade, the OECD has further deepened its engagement with business, trade unions and other representatives of civil society. The U.S. Council for International Business (USCIB) represents the views of America’s private sector through its participation in the OECD’s Business and Industry Advisory Committee (BIAC). The U.S. trade union interests are represented on the OECD’s Trade Union Advisory Committee by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) (USA).
Today, OECD member countries account for 63 percent of world GDP, three-quarters of world trade, 95 percent of world official development assistance, over half of the world’s energy consumption, and 18 percent of the world’s population. Together with its sister agencies, the International Energy Agency (IEA) and Nuclear Energy Agency (NEA), the OECD helps countries – both members and non-members – reap the benefits and confront the challenges of a global economy by promoting sound energy policies that further: economic growth; energy security; free markets; the increasingly safe, clean, and efficient use of resources to reduce environmental impacts and preserve our climate; and science and technology innovation.
How does it work?
The OECD provides a setting for reflection and discussion, based on policy research and analysis that helps governments shape policy that may lead to a formal agreement among member governments or be acted on in domestic or other international fora.
The OECD’s way of working consists of a highly effective process that begins with data collection and analysis and moves on to collective discussion of policy, then decision-making and implementation.
How the Secretariat Operates
The OECD is comprised of a ‘Secretariat’ that carries out the work of the Organization. The work of the Secretariat parallels the work of committees, with each directorate (or department) supporting one or more committees, as well as committee working parties and sub-groups.
The Secretariat’s work is oriented by OECD members whose representatives participate in OECD committees and working parties.
OECD Directorates and Main Committees:
The following is a list of OECD directorates and most, but not all, of its principal committees. There are some 250 committees at work in all.
1. Development and Cooperation Directorate
The OECD Development Center is a research-oriented body that promotes better understanding of developing countries’ economic and social problems and shares the knowledge, information and experience gained by OECD members with the development process.
The Development Assistance Committee (DAC) executes the development functions of the OECD. It is an important forum within the OECD in which donor countries coordinate policies and seek answers to common problems on a variety of development issues. American participation in the Development Assistance Committee (DAC) is led by USAID and the committee is co-chaired by the United States delegate to the DAC.
2. Economics Department
The Economics Department examines economic and financial developments in OECD countries and in selected non-member economies. The department also produces the twice-yearly OECD Economic Outlook and supports the work of the Economic and Development Review Committee (EDRC) and the Economic Policy Committee.
American participation in the EDRC is led by the Department of State, the Council of Economic Advisors, the Treasury Department and the Federal Reserve. The Council of Economic Advisors also holds chairmanship of the Economic Policy Committee.
3. Directorate for Education
The Education directorate helps member countries achieve high-quality learning for all that contributes to personal development, sustainable economic growth and social cohesion. It focuses on how to evaluate and improve outcomes of education – to promote quality teaching and to build social cohesion through education.
The directorate produces the annual Education at a Glance; the Program for International Student Assessment (PISA) that provides a direct assessment every three years of the levels of achievement of 15-year-olds; and the Program for the International Assessment of Adult Competencies (PIAAC), which includes the Survey of Adult Skills.
4. Directorate for Employment, Labor and Social Affairs
The Directorate for Employment, Labor and Social Affairs oversees work on the inter-related policy areas that can promote employment and prevent social exclusion. Its activities are focused on four main themes: employment and training, health, international migration and social issues.
American participation in the Employment, Labor and Social Affairs Committee (ELSA) is led by the Department of Labor.
5. Center for Entrepreneurship, SMEs and Local Development
The OECD’s Center for Entrepreneurship, SMEs and Local Development fosters an entrepreneurial society, capable of innovating, creating jobs and seizing the opportunities provided by globalization while helping to promote sustainable growth, integrated development and social cohesion.
American participation in the Cooperative Action on Local Economic and Employment Development (LEED) committee is led by the Department of Labor.
6. Environment Directorate
The Environment directorate helps member countries to design and implement efficient, effective policies to address environmental problems and to manage natural resources in a sustainable way. The directorate produces regular peer reviews of member countries environmental performance.
7. Directorate for Financial and Enterprise Affairs
The Directorate for Financial and Enterprise Affairs promotes policies and best practices designed to keep markets open, competitive and sustainable while combating market abuses and economic crime through international cooperation. The directorate supports the work of five bodies: Insurance and Private Pensions Committee, Committee on Financial Markets, Competition Committee, Steering Group on Corporate Governance, and the Investment Committee.
A separate intergovernmental body, The Financial Action Task Force (FATF) develops and promotes policies to combat money laundering and terrorist financing. U.S. representation in FATF is led by the Department of Treasury.
8. Global Relations
The aim of the OECD’s Global Relations is to create a community of economies which are committed to best policy practices and to finding joint solutions for common challenges, guided by the Organization’s evidence-based policy advice and standards. Global Relations also advances the OECD’s relationships with five Key Partners: Brazil, China, India, Indonesia, and South Africa.
9. Public Affairs and Communications Directorate
The OECD attaches great importance to cooperation and communication with business, labor, parliamentarians, civil society, media and the general public. The Public Affairs Division is the Organization’s focal point for this cooperation in the OECD’s efforts to build trust in public institutions and promote understanding of economic and social change.
The Public Affairs directorate organizes annual consultations in collaboration with the Business and Industry Advisory Committee (BIAC), Trade Union Advisory Committee (TUAC), Council of Europe and Economic Committee of the NATO Parliamentary Assembly, and with civil society at large through the annual OECD Forum.
10. Public Governance and Territorial Development Directorate
The Public Governance and Territorial Development Directorate helps countries to adapt their government systems and policies to the changing needs of society. This involves improving government efficiency while protecting and promoting society’s longer-term governance values. In addition, the Working Party on Regulatory Reform looks at issues of regulation across a range of member and non-member countries and industries.
The U.S. participation in the Public Governance Committee is led by the Office of Management and Budget, and the Department of Commerce represents the United States in the Territorial Development Committee.
11. Directorate for Science, Technology and Innovation
The Directorate for Science, Technology and Innovation develops evidence-based policy advice on the contribution of science, technology and industry to societal well-being and economic growth. It leads OECD work on the translation of science, technology and knowledge into innovation.
United States participation in the science and technology committees is led by the National Science Foundation.
12. Statistics Directorate
Statistics underpin the whole fabric of the OECD’s work and the Organization has become one of the world’s largest and most reliable sources of statistical, economic and social data. This data is standardized to make them internationally comparable and are published in both print and electronic form.
U.S. representation on the Statistics Committee is led by the Office of Management and Budget.
13. Center for Tax Policy and Administration
The Center for Tax Policy and Administration examines all aspects of taxation, including international and domestic tax issues, direct and indirect taxes and tax policy and administration.
U.S. representation on the Committee on Fiscal Affairs is led by the Treasury Department.
14. Trade and Agriculture Directorate
The Trade and Agriculture Directorate’s work supports a strong, rules-based multilateral trading system that will maintain momentum for progressive trade liberalization and rules-strengthening while contributing to rising standards of living and sustainable development in OECD and non-OECD countries.
U.S. participation in the OECD’s Trade Committee is led by the Office of the U.S. Trade Representative (USTR).
The Directorate for Trade and Agriculture provides analysis and advice to help governments design and implement policies that achieve their goals in effective, efficient and least trade-distorting ways. The work covers four broad areas: agricultural policy reform, agricultural trade liberalization, food security, and fisheries.
The U.S. participation in the Committee for Agriculture is led by the Department of Agriculture, while the Department of State leads the U.S. delegation on Food Security issues. The National Oceanic and Atmospheric Administration (NOAA), part of the Department of Commerce, leads the U.S. delegation to the Committee for Fisheries.
Other OECD Bodies:
1. Center for Educational Research and Innovation
The Center for Educational Research and Innovation (CERI) is a pioneer in educational research. Its primary aims are to encourage better links between research, policy innovation and practice, and enrich knowledge about education trends internationally. CERI works closely with the Education Directorate.
U.S. participation in CERI is provided by the Department of Education.
2. International Energy Agency (IEA)
The IEA acts as an energy advisor for member states in their effort to ensure reliable, affordable and clean energy for their citizens. Its role is to coordinate joint measures in times of oil supply emergencies, and its policy-making focuses on energy security, economic development and environmental protection.
U.S. participation in the IEA is led by the Department of Energy.
3. Nuclear Energy Agency (NEA)
The mission of the NEA is to assist its members in maintaining and further developing, through international co-operation, the scientific, technological and legal bases required for the safe, environmentally friendly and economical use of nuclear energy for peaceful purposes.
United States participation is led by the Department of Energy.
4. Sahel and West Africa Club (SWAC)
The Sahel and West Africa Club is the only international platform entirely dedicated to regional issues. Its mission is to help build more effective policies to improve peoples’ living conditions in West Africa.
U.S. participation in SWAC is provided by USAID.
Business Industry Advisory Committee (BIAC)
BIAC is an independent organization officially recognized by the OECD as being representative of the business community in Member countries. Its role is to provide the OECD and its members with constructive comments and advice based on the practical experience of its members.
The U.S. is represented at BIAC by the U.S. Council for International Business (USCIB). BIAC is currently chaired by a member of the United States business community.
Trade Union Advisory Committee (TUAC)
TUAC is an international trade union organization that has consultative status with the OECD and its various committees. It acts as an interface for labor unions with the OECD.
United States representation at TUAC is led by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) which currently holds the TUAC presidency.