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Based in Paris, France, the Organisation for Economic Cooperation and Development (OECD) is an inter-governmental organisation that provides the setting for democratic and market oriented countries to study and develop economic and social policies with the ultimate aim of maximising economic growth. New Zealand joined the OECD in 1973.
The principal aims of the OECD are to:
Through membership of the OECD 34 countries discuss and compare policy approaches to economic issues as wide-ranging as population aging, pollution, sustainable development, health, governance, development assistance, trade and agriculture. The OECD provides bench-marking advice to members on best practice in social and economic policies, assists members to coordinate policy, and sometimes helps member countries to develop accords and agreements which must then be adopted by consensus. Increasingly, a priority for the OECD is to relate its work to the needs of developing countries in order to identify ways in which to enhance their prospects for achieving economic growth.
The OECD works at the cutting edge of all the key economic and social issues on the international economic agenda. The main areas the OECD works in are:
The OECD grew out of the Organisation for European Economic Cooperation (OEEC) which was created to help rebuild European economies after World War II. In 1961, after reconstruction was largely accomplished, the United States, Canada and Europe transformed the OEEC into the OECD to serve as a forum to help build strong economies across the membership. Given this broader mandate its membership has expanded to include countries such as New Zealand and Australia as well as Japan, Korea, Mexico, and the new market economies of Eastern Europe. New Zealand joined the OECD in 1973. The most recent members to join were Chile, Estonia, Israel and Slovenia (all 2010). Russia is going through an accession process. The OECD also has extensive cooperation programmes, including with Brazil, China, India, Indonesia, and South Africa.
2011 marked the 50th Anniversary of the OECD. The theme of the anniversary year, “Better policies for better lives” reflects the OECD’s unique role in developing robust, non-discriminatory policies to improve the living standards of members and non-members alike. top of pageThe OECD provides a valuable forum through which New Zealand can make its voice heard on key economic and social issues. Members share a common belief that trade and investment are engines of global economic growth and prosperity, and are fundamental to the reduction of poverty. Through the OECD, New Zealand can learn from others' experiences - both their successes and their mistakes - across the full range of economic and social policy challenges facing governments. The OECD is also a valuable source of intellectual capital and analytical work on which New Zealand can draw to supplement and confirm our own policy development process.
OECD membership enables New Zealand public servants to build extensive cooperative networks with their counterparts in other OECD member countries - networks on which they can draw to improve the quality of their work in the interests of the New Zealand public. Many government departments have regular direct contact with the OECD. There is a New Zealand Delegation to the OECD, which is part of the New Zealand Embassy in Paris.
As an organisation which is more than regional, but less than global, the OECD usefully fills a niche in the architecture of international economic organisations. The OECD Economic Outlook - published twice a year - provides an assessment of economic trends, prospects and policies in member countries. The organisation's regular country reviews, which involve peer review by other OECD members, are a unique source of insight into our comparative performance across a broad range of government policy areas - they tell us how others see us. A good example is the periodic reviews of New Zealand's economy and overseas development assistance.
In 2003, former Prime Minister Helen Clark chaired the OECD Ministerial Council Meeting (MCM) - the annual meeting of finance/trade ministers. Key themes included: policies to maintain confidence and enhance economic growth; promoting growth and investment in developing countries; WTO trade negotiations; and reform of the OECD.
50th Anniversary Ministerial Council Meeting and Forum, 2011
Hon Tim Groser, Trade Minister, represented the New Zealand Government at the 2011 Ministerial Council Meeting and Forum (an international public conference held in parallel with the Ministerial Council Meeting). The MCM and Forum officially marked the OECD’s 50th Anniversary. The Minister addressed Forum participants during the session on “Green Growth”, a major new policy area for the OECD. Mr Groser highlighted the importance of working collaboratively to address global challenges, such as how to improve economic welfare in a sustainable way.
top of pageIn addition to robust analysis of, and policy advice on, economic-related challenges facing members, the OECD provides leadership in other key areas.
Guidelines for Multinational Enterprises
An example of one aspect of work that is driven by the OECD and its membership are its Guidelines for Multinational Enterprises. These guidelines set out voluntary principles and were last updated in 2011. These are designed to help multinational firms operate in harmony with the policies and societal expectations of their national governments and align their activities with international best practice. The guidelines' coverage is broad, touching on issues such as information disclosure, employment, industrial relations, the environment, combating disclosure, consumer interests, science and technology, competition and taxation. The guidelines were developed by 39 governments (including New Zealand) and are increasingly being used to guide the development of ethical codes in business.
The Ministry of Economic Development is New Zealand's National Contact Point regarding these guidelines. As the National Contact Point the Ministry has three broad objectives:
For further information about the Guidelines, please contact the Competition, Trade and Investment Branch, Ministry of Economic Development, phone +64 4 472 0030, email: oecd-ncp@med.govt.nz
The Financial Action Task Force
The Financial Action Task Force (FATF), of which New Zealand is a member, is an inter-governmental body which sets international standards for anti-money laundering and counter-terrorist financing. Although FATF and the OECD are separate organisations the FATF secretariat is located at the OECD. The FATF monitors the building of anti-money laundering systems in its member countries and cooperates with other international bodies involved in the fight against money laundering.
The Ministry of Justice is responsible for coordinating the development of New Zealand's anti-money laundering and counter-terrorist financing policy.
