what does it mean to be an oecd member
Por: María Iglesia
Past meeting international standards and completing reviews, countries that become OECD members are seen as potentially more than bonny recipients of strange investment. The accretion procedure takes at least a year.
The Argentinian government has appear that it will begin the process of becoming function of the Organisation for Economic Co-operation and Evolution (OECD) at the terminate of February 2016, at which point information technology volition establish a schedule of the steps information technology must follow in club to adjust to the organization's standards. If information technology does join this select group of countries, information technology will be the 2d nation in Due south America to do so, afterward Chile, and the 3rd in Latin America, every bit Mexico is also a fellow member.
The OECD is a grouping of 34 countries which have in common the fact that they have democratic systems of government and marketplace economies. It has been referred to as the "rich-country club" considering its members represent around lxx% of the global market place.
Source: OECD.
The OECD was created in 1961 with the goal of promoting policies that improve people's economical and social well-being. The OECD provides a forum where governments tin can piece of work together to share experiences and seek solutions to mutual problems. Its tasks also include developing indicators of productivity and global trade and investment flows, analyzing and comparing data to predict trends, and setting international standards for a wide range of public policy problems.
The OECD emerged later on functioning for 12 years every bit the Arrangement for European Economic Co-functioning (OEEC), which was founded to help implement the Marshall Plan for the reconstruction of Europe after the Second World War.
OECD members become benchmark countries that prepare quality standards in different areas of trade and investment. In this regard, the OECD creates policy recommendations following the assessments that its experts carry out in fellow member countries. This aspect is similar to the reviews carried out past the International Monetary Fund (Imf) within the framework of Commodity IV of its Articles of Agreement. Another point in common with the International monetary fund is that the OECD publishes twice-yearly macroeconomic reviews (OECD Economic Outlook), which clarify the main global trends and examine the economical policies that would be required to foster high, sustainable growth in fellow member countries.
To carry out these reviews, the OECD sends experts to a given country—these are generally from another member country, which is why the process is referred to as a "peer review"—who make contact with different agents regarding specific issues, such as health or instruction policies, among other development-related areas.
Condign an OECD fellow member also leads to a greater variety of statistics existence available on the country in question: the arrangement publishes data regarding its members on a broad spectrum of topics, including agronomics and food, evolution, education, gender studies, and macroeconomic data. There is likewise a work surface area involving technical meetings on policies that fellow member states take agreed on.
However, one of the points that is virtually significant for countries such as Argentina is the international recognition that comes with membership, in particular the possibility of attracting foreign direct investment (FDI). For some organizations, OECD membership is one of the necessary weather condition for investing in a given country. In a way, the OECD is a "quality seal" in such matters. Regardless, it is clear that OECD membership is an important gene for increasing FDI, although it is non the simply one. When Mexico and Chile became OECD members, FDI increased, but this was besides the case in countries such as Brazil, which is non part of the system.
Figure 1. Strange Straight Investment in Selected Countries
Source: Huffington Post based on national statistics.
Accession Process
In Argentina'south case, belatedly February 2016 would marker the first of the process for becoming a new OECD member. Up to now, the land has been an associate fellow member, forming part of bodies such as the Committee on Fiscal Affairs, the Merchandise Commission, the Committee for Agronomics, the Fisheries Committee, the Commission for Scientific and Technological Policy, the Development Heart, the Working Group on Blackmail, and the Investment Committee, among others.
The menstruum during which accretion is formalized consists of several stages in which the state seeking membership is asked to comply with various OECD quality standards (such as meeting sure statistical standards), a process that takes at least a twelvemonth.
In turn, the organization evaluates the institutions of whatever country wishing to bring together, too as the policies it applies in various areas. Following the unanimous agreement of member countries, the terminal step in the accretion process becomes a reality when the candidate country deposits an instrument of accession to the OECD Convention.
Chile was i of the final countries to join the OECD. It did so in May 2010 after more than a year of negotiations, during which it adapted various aspects of its domestic policy to run into OECD standards.
In 1961, 20 countries signed the agreement that gave rise to the OECD. Past 2015, 14 more countries had get members. In 2013, Colombia and Latvia began the accession process, while Russia has been negotiating membership since 2007. In 2015, Costa rica and Lithuania also began to seek admission. The accession processes for all these countries are notwithstanding underway. If Argentine republic is added to the listing, the number of countries that are currently seeking accession would total six.
Source: https://conexionintal.iadb.org/2016/01/29/costos-y-beneficios-de-formar-parte-de-la-ocde/?lang=en
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