The forerunner of the OECD was the Organization for European Economic Co-operation (OEEC). The OEEC was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II. Its headquarters were established in Paris in 1949.
The OECD took over from the OEEC in 1961. Since then, its missions have been to:
In order to contribute to the development of the world economy, the OECD’s focus has progressively broadened to include a growing number of other countries, in addition to its 30 members who are committed to democracy and the market economy. It now shares its expertise and accumulated experience with more than 70 developing and emerging market economies.
The OECD view on globalization may be best-defined with the speech of Australian Treasurer Peter Costello at The Annual OECD Summit, 2000 which states “We don’t have a choice as to whether or not to stop globalization. Our choice is how to manage it and how to manage it for the benefit of our citizens.” In this framework, it could be said that the OECD views globalization as an inevitable process and just aims to regulate and manage the process.
5.1.4. World Trade Organization – WTO
The WTO has 151 members, accounting for over 97% of world trade and is the only global international organization dealing with the rules of trade between nations that is the main catalyst of the process of globalization. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments.
Currently there are WTO agreements on goods, services and intellectual property rights. The GATT is the principle rule-book for trade in goods. The WTO also provides dispute settlement and policy reviews. Main functions of the organization are as follows:
Assisting developing countries in trade policy issues, through technical assistance and training programs,
Cooperating with other international organizations.
As the main purposes of the organization are to promote freer trade, fair competition and encourage development and economic reform, it is one of the main contributors of the process of economic globalization.
