The OECD, with 38 member countries, aims to stimulate economic progress and world trade. It provides a platform for policy comparison and coordination among developed nations, representing 1.38 billion people with high-income economies.
In June 1947, US Secretary of State General George C. Marshall offered generous amounts of American aid under the European Recovery Programme, known as the Marshall Plan, to assist European economic reconstruction after World War II.
The Organisation for European Economic Co-operation (OEEC) was established in April 1948 among the European recipients of Marshall Plan aid for the reconstruction of Europe after World War II. It was the predecessor organization to the OECD and primarily focused on the allocation of American aid.
The Free Territory of Trieste (Zone A) was a former member of the OEEC until 1954, when it merged with Italy and ceased to exist as an independent territorial entity.
Frenchman René Sergent took over as the Secretary-General of the Organisation for European Economic Co-operation (OEEC) in 1955, succeeding Robert Marjolin. The OEEC played a crucial role in the reconstruction of Europe after World War II.
The Convention transforming the OEEC into a new organisation was signed at the Château de la Muette in Paris on 14 December 1960, marking the beginning of a new era with the establishment of the Organisation for Economic Co-operation and Development.
The Organisation for Economic Co-operation and Development officially came into being on 30 September 1961, signifying a significant milestone in international economic cooperation and development.
The OECD Observer, an award-winning magazine, was launched in 1962. It provided news, analysis, reviews, commentaries, and data on global economic, social, and environmental challenges.
The OECD established the International Energy Agency (IEA) in 1974. The IEA is an autonomous agency within the framework of the OECD, dedicated to promoting energy security, economic growth, and environmental sustainability.
The OECD Guidelines for Multinational Enterprises were established in 1976 as a set of recommendations for responsible business conduct for multinational corporations. These guidelines are not legally binding but provide principles and standards for companies operating internationally.
Yugoslavia held observer status in the OECD from the establishment of the organization until its dissolution as a country in 1989. This status allowed Yugoslavia to participate in OECD activities without being a full member.
In 1990, the Centre for Co-operation with European Economies in Transition was established by the OECD to assist countries in Central and Eastern Europe in preparing for market economy reforms.
In 1991, the OECD launched the 'Partners in Transition' programme for the benefit of Czechoslovakia, Hungary, and Poland, offering a membership option for these countries to facilitate market economy reforms.
The OECD published and updated the Transfer Pricing Guidelines since 1995, serving as a template for the profit allocation of inter-company transactions to countries.
In 1996, Estonia, Latvia, and Lithuania signed a Joint Declaration expressing their willingness to become members of the OECD, signaling their intent to join the organization.
In 1997, former Deputy Secretary-General Pierre Vinde estimated that the cost borne by member countries for attending OECD meetings is equivalent to running the secretariat, making OECD more of a forum for officials and experts.
Since 1998, all OECD publications including books, reports, statistics, and working papers have been accessible through the OECD iLibrary. The collection dates back to 1947, encompassing records from the Committee for European Economic Co-operation and the Organisation for European Economic Co-operation.
A working group led by ambassador Seiichiro Noboru established criteria for OECD enlargement, including 'like-mindedness', 'significant player', 'mutual benefit', and 'global considerations'. The recommendations were presented at the OECD Ministerial Council Meeting in May 2004.
In 2005, Malta applied to join the Organisation for Economic Co-operation and Development (OECD), seeking to become a member of the influential international economic organization.
The OECD Ministerial Council decided to start accession discussions with Chile, Estonia, Israel, Russia, and Slovenia, and to enhance cooperation with Brazil, China, India, Indonesia, and South Africa in May 2007.
In March 2008, OECD published the OECD Environmental Outlook to 2030, highlighting the achievability and affordability of addressing key environmental issues.
Chile, Slovenia, Israel, and Estonia became members of the OECD in 2010 after the accession discussions.
In 2011, the OECD introduced the OECD Yearbook for the 50th anniversary of the organisation.
In September 2012, the government of Bulgaria confirmed its decision to apply for membership in the OECD, signaling its interest in joining the organization.
In 2013, the OECD decided to initiate membership talks with Colombia and Latvia.
In March 2014, the OECD stopped membership talks with Russia due to its involvement in the 2014 Annexation of Crimea.
In July 2014, the OECD publicly released its main statistical databases through the OECD Data Portal, allowing visitors to create custom charts based on official OECD indicators.
In 2015, the OECD began membership talks with Costa Rica and Lithuania.
Latvia officially became a member of the OECD on 1 July 2016.
The latest version of the OECD Transfer Pricing Guidelines, updated in July 2017, incorporates the approved Actions developed under the Base Erosion and Profit Shifting (BEPS) project initiated by the G20.
Colombia signed the OECD accession agreement on 30 May 2018.
Lithuania joined the OECD on 5 July 2018.
Colombia officially became a member of the OECD on 28 April 2020.
On 15 May 2020, the OECD extended a formal invitation for Costa Rica to join the organization.
The OECD published the 2020 Economic Outlook on June 10, 2020, to adjust economic forecasts greatly impacted by the Coronavirus pandemic. The report assesses the economic impact of COVID-19 and provides projections for potential future scenarios.
Costa Rica became a member of the OECD on 25 May 2021.
On July 1, 2021, finance officials from 130 countries reached an agreement on a new international taxation policy called the global minimum corporate tax, set at 15%. This agreement aims to prevent multinational companies from being taxed at lower rates by different countries.
On 25 February 2022, the OECD terminated the accession process with Russia after it invaded Ukraine.
The OECD's budget for 2023 is divided into Part I and Part II programmes of work. Member countries contribute funding to the Part I budget based on equal proportions and the relative size of their economies. The total budget for 2023 is €338.3 million, with Part I budget at €219.6 million and Part II budgets at €118.7 million.
Australia's average tax rate has increased significantly, surpassing other OECD countries. This rise is attributed to bracket creep and the discontinuation of tax offset.