The Organisation for Economic Co-operation and Development (OECD) occupies a unique place in the global architecture of international economic governance. Its origins lie in the Marshall Plan, an American initiative to help rebuild European economies after the end of the Second World War in the face of a growing Soviet threat. A new organisation, the Organisation for European Economic Co-operation (OEEC), was established in 1948 to administer the Marshall Plan. The OEEC also helped to build a co-operative spirit among Western European economies as they searched for policy solutions to the challenges they faced.
The OECD was formed from the OEEC through its Members’ desire to carry forward its work on a wider stage. A founding convention for the OECD was negotiated and concluded in Paris on 14 December 1960 among the existing 18 OEEC members plus the US and Canada, the latter two becoming full Members of the new organisation. The OECD came formally into being on 30 September 1961, and its Members all had, and still have, a commitment to the core goal of developing policies and agreements that foster sustainable economic growth. The goal of this growth is to improve the lives of OECD Members’ citizens, and the citizens of non-member countries, with a commitment to liberal democratic norms. As a result, there is considerable ‘like-mindedness’ among Members, as well as considerable sharing of policy learning. This often leads to policy transfer, achieved through such processes as subjecting Members’ policies to the discipline of ‘peer review’ by other Members, as well as policy research by the Secretariat, with a strong emphasis on developing evidence-based, comparative policy options.
This core, policy-focused goal has not changed in the 60 years of the OECD’s existence, for two basic reasons. The first is that the overall goal and associated aims in its founding Convention are sufficiently broad to permit OECD Members to undertake almost any activity they wish in relation to economic growth, trade and stability. This, in turn, provides Members with a relatively high degree of flexibility when faced with changing conditions, such as those so dramatically posed by the global financial crisis, COVID-19, and the recent rise in multilateral tensions. The second reason is the relative homogeneity of Members’ fundamental political and economic values. Which is not to assert that they have no differences, for they have many, as is evident in their debates, discussions and arguments on a vast range of topics. The differences, however, are not so great as to conflict in any fundamental way with the OECD’s overall goal. The increasingly rigorous process of accession to the Organisation enables Members to exclude those whose perspectives are too different.
This inherent, organisational adaptability has been brought to the fore in the decade from 2011 to 2021, a period of widespread transformation of the OECD, examined at greater length in the following chapters. During these 10 years:
-
The membership of the OECD has increased from 34 to 37 (and soon, with Costa Rica’s membership, to 38).
-
The number of staff rose sharply, up from 2,500 to approximately 3,700, driven largely by voluntary contributions.
-
The governance of the Organisation was reformed.
-
Global relations were substantially expanded, with an emphasis on disseminating OECD standards throughout the world and, in particular, much wider access to participation in the OECD’s work by non-members.
-
The finances of the Organisation were reformed, prioritising improved efficiency.
-
Human resources policies were reformed and various management initiatives were launched.
-
A wide range of policies, initiatives, agreements and standards were either introduced or substantially modified, making the OECD the hub of an extensive, global policy network and increasing its impact and relevance.
While the number of books and articles about the OECD published in the last decade has grown rapidly, in line with its growing importance in global economic governance, most have focused on one or more periods before 2011–2021. Yet, this latter period has been one in which the OECD experienced the most rapid series of changes since its founding in 1961, amounting to a veritable transformation of the Organisation. It was also a period that saw the last two of three terms in office of Secretary-General Angel Gurría, who has occupied that position for 15 years, matched only by Emile van Lennep’s tenure from 1969 to 1984. Hence, the aim of this book is to provide a description of the life of the OECD, covering the period from 2011, the year of its 50th anniversary, to 2021, its 60th anniversary.
This is a relatively short book, so several of the changes experienced at the OECD are not covered, not because they are unimportant, but simply because of a lack of space. Similarly, most of the major changes that are covered in the book are not covered in any great depth, leaving opportunities for other scholars to provide the depth of analysis they deserve. Moreover, as the book is intended for a general audience, we have not provided what would have been a very extensive set of references to support our description and analysis. Nevertheless, most of the documents and developments noted in the text can be found on the OECD’s website.
In the many interviews conducted by the authors we apologised, in advance, to the interviewees for what we knew would be the omission of many interesting facts and opinions that they would provide, and we take this opportunity to once again apologise. Even where their views and anecdotes are not included, they provided a ‘flavour’ to this work for which we are very grateful.
The book consists of 13 chapters. Chapters 2 and 3 are intended, primarily, for those readers unfamiliar with the OECD and focus on how the Organisation is governed and its remarkable history.
Chapter 4, on leadership, is a topic that has been rather neglected in previous studies of the OECD. It concentrates on the leadership of Secretary-General Gurría, who has led the Organisation through a period of great change, marked by the impact of the global financial crisis (GFC) and COVID-19.
Chapter 5 covers the rapidly growing, and increasingly important, global work of the OECD, especially the development and implementation of a new global relations strategy, the Organisation’s enlargement and, particularly in its relations with the G7/G8 and the G20, its success in positioning itself as a hub of a global policy network.
Chapter 6, ‘Going National’, describes the increased efforts by the Organisation to provide even more relevant policy work for its Members, with a sharpened focus on tailoring policy solutions to national contexts and providing advice on their implementation.
Chapter 7 examines the ‘Green Growth’ initiative that helped fully establish the environmental credentials of the OECD, with its work on the increasingly important issues of the economics of climate change and biodiversity.
Chapter 8 illustrates how the Organisation has led the world by focusing on well-being and inclusive growth, rather than primarily on GDP, developing statistical techniques to measure them.
Chapter 9 looks at innovation and the digital economy, areas of work that have both grown and become more interconnected at the OECD over the last decade, and are likely to continue to grow in the years ahead. It is also work that has taken care to examine the social dimensions of both innovation and the digital economy, in line with the OECD’s work on inclusion.
Chapter 10 looks at the long and very successful experience of the OECD with work on taxation and tax administration, leading to its present position as the pre-eminent international agency in the field, a position that has helped enhance the OECD’s global reputation.
Chapter 11 looks at New Approaches to Economic Challenges (NAEC), Strategic Foresight and Smart Data. NAEC is a unit driving the ongoing attempt to develop new, more sophisticated understandings of socio-economic systems that could better support and, where appropriate, modify and overturn traditional assumptions and the OECD’s economic and social policy analysis and recommendations built upon them. Strategic Foresight, like NAEC, based in the Office of the Secretary-General, provides assistance in using ideas and scenarios about the future that can be used to better anticipate change and policies for dealing with that change. The Smart Data project aims to help meet policy needs with innovative data, technical, organisational, legal and human capabilities, working closely with OECD Member countries and the broader data ecosystem.
Chapter 12 examines OECD work on health, which became a central focus in the last two decades, and then on COVID-19, the subject of rapidly expanding work as regards its impact since its onset in 2020. This will expand as the world recovers from the pandemic.
Chapter 13 is a short conclusion, summarising what the authors regard as the major changes at the OECD in the last decade, a period of transformation.