What is the Organisation for Economic Co-operation and Development (OECD)?

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Mains GS-III: Economy
What is the Organisation for Economic Co-operation and Development (OECD)? Blog Image

Key facts about Organisation for Economic Co-operation and Development (OECD):

  • It is an international organisation of 38 countries committed to democracy and the market economy.
  • OECD members are typically democratic countries that support free-market economies.
  • The OECD was established on Dec. 14, 1960, by 18 European nations, plus the United States and Canada.
  • Headquarters: Paris, France.
  • The stated goal of the Organisation for Economic Co-operation and Development (OECD) is to shape policies that foster prosperity, equality, opportunity and well-being for all.
  • The OECD publishes economic reports, statistical databases, analyses, and forecasts on the outlook for economic growth worldwide.
  • The organization also seeksto eliminate bribery and other financial crime worldwide.
  • The OECD maintains a so-called "black list" of nations that are considered uncooperative tax havens.
  • India is one of the many non-member economies with which the OECD has working relationships in addition to its member countries. 


The Programme for International Student Assessment (PISA):

  • It is an international assessment that measures 15-year-old students' reading, mathematics, and science literacy every 3 years. 
  • First conducted in 2000, the major domain of study rotates between reading, mathematics, and science in each cycle.
  • PISA also includes measures of general or cross-curricular competencies, such as collaborative problem solving. 
  • PISA is coordinated by the OECD.


Q1) Which countries can become an OECD member?

Countries wishing to become OECD members must demonstrate a “readiness” and a “commitment” to adhere to essentially two fundamental requirements:

(i) democratic societies committed to rule of law and protection of human rights; and

(ii) open, transparent and free-market economies.

Source: State signs deal with OECD to hold PISA test for govt school students