key term - Organisation for Economic Co-operation and Development

Definition

The Organisation for Economic Co-operation and Development (OECD) is an international organization founded in 1961 to promote economic growth, stability, and improved living standards among its member countries. It serves as a forum for governments to collaborate on policies that foster economic development, social well-being, and sustainable practices, particularly in the context of postwar Europe's recovery and integration efforts.

5 Must Know Facts For Your Next Test

1. The OECD was established to replace the Organisation for European Economic Co-operation (OEEC), which had been set up to administer U.S. financial aid under the Marshall Plan.
2. The organization's headquarters is located in Paris, France, and it currently has 38 member countries, primarily from Europe, North America, and Asia-Pacific.
3. OECD plays a vital role in collecting and analyzing data on member economies, which helps inform policy decisions related to economic growth, education, and environmental sustainability.
4. One of the key objectives of the OECD is to promote policies that improve the economic and social well-being of people around the world by addressing challenges such as inequality and climate change.
5. OECD's work in postwar Europe significantly contributed to rebuilding efforts, guiding economic policies that fostered stability and growth in member countries during a crucial period of recovery.

Review Questions

• How did the establishment of the OECD impact economic recovery efforts in postwar Europe?
  • The establishment of the OECD in 1961 played a significant role in shaping economic recovery efforts in postwar Europe by providing a platform for member countries to collaborate on effective policies. It built on the earlier success of the Marshall Plan and aimed to foster cooperation among nations as they sought to rebuild their economies. By sharing best practices, data analysis, and research, the OECD helped guide member states toward sustainable growth and stability.
• In what ways did the OECD contribute to shaping policies related to social well-being and sustainable practices among its member countries?
  • The OECD contributed to shaping policies related to social well-being by conducting extensive research on issues such as education, health care, and income inequality. By analyzing data across different countries, it was able to identify successful strategies that could be adapted by member nations. Additionally, the OECD promoted sustainable practices by addressing challenges like climate change and environmental degradation through collaborative initiatives that encouraged responsible economic development.
• Evaluate the significance of the OECD's role in fostering international economic cooperation in the context of postwar Europe's integration efforts.
  • The OECD's role in fostering international economic cooperation was crucial for postwar Europe's integration efforts. By providing a framework for dialogue and collaboration among member states, it facilitated the sharing of knowledge and resources essential for recovery. The organization helped align national policies with broader economic goals, reinforcing interdependence among European nations. This laid the groundwork for deeper integration initiatives like the European Economic Community, ultimately influencing Europe's trajectory towards a unified market and greater political cohesion.

Related terms

Marshall Plan:

An American initiative launched in 1948 to aid Western Europe by providing financial support for economic recovery after World War II.

European Economic Community:

A regional organization established in 1957 aimed at fostering economic integration among its member states, which later evolved into the European Union.

Economic Integration:

The process by which different countries reduce trade barriers and coordinate economic policies to enhance cooperation and economic ties.