The Organisation for Economic Co-operation and Development (OECD) is an international intergovernmental organization including 38 member countries. The OECD established in 1961 promotes economic growth, global trade, policy, sustainable development through research, data & international standards.
The Organisation for Economic Co-operation and Development (OECD) is an international forum and policy knowledge hub that promotes economic growth, sustainable development, and global cooperation. OECD is headquartered in Paris, France. It works with over 100 countries by providing data, research, policy analysis and best practices to help governments create stronger, fairer, and more resilient societies through better public policies. The OECD is an international organization containing 38 member countries that work together to promote economic growth, improve public policies and enhance global prosperity. The organisation sets international guidelines and treaties across a variety of topics such as anti-corruption, corporate governance and taxation.
What is OECD?
Established in 1961, OECD stands for Organisation for Economic Co-operation and Development. The OECD currently consists of 38 member countries such as the United Kingdom, Canada, New Zealand, Costa Rica, Chile, Turkey, Japan and Australia are a part of the organisation. The OECD headquarters is located at the Château de la Muette in Paris, France. It acts as an international policy forum where governments collaborate to accelerate economic progress and world trade. The organisation collects data, analyzes economic trends and publishes highly sought after reports, such as the Economic Outlook. The OECD founding 20 members of the countries: Austria, Belgium, Canada, Denmark, France, West Germany (now Germany), Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Türkiye (Turkey), United Kingdom and the United States.
What are the OECD Guidelines?
The OECD Guidelines are internationally recognized principles and recommendations that promote responsible business conduct, good governance, transparency, sustainable development, anti-corruption, environmental protection, Fundamental Right, labor standards, and consumer protection. They help governments and businesses adopt ethical practices and align with global standards.
The OECD guidelines also promote corporate accountability, responsible supply chains, ethical investment, due diligence, stakeholder engagement, and compliance with international standards. They encourage sustainable economic growth, strengthen investor confidence, protect workers' rights, and foster environmentally and socially responsible business practices worldwide.
How Many Countries are Members of the OECD?
As of 2026, the Organisation for Economic Co-operation and Developments (OECD) consist of 38 member states across the Americas, Europe and Asia and Oceania region. The Most of the member states are from Europe. Let’s take a look at the member states of OECD: -
| Continent |
OECD Member States |
Total |
| Europe |
Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland and United Kingdom |
26 |
| Asia |
Israel, Japan, South Korea and Turkey |
4 |
| North America |
Canada, Mexico and United States |
3 |
| South America |
Chile and Colombia |
2 |
| Oceania |
Australia and New Zealand |
2 |
| Central America |
Costa Rica |
1 |
5 Key Partners of OECD
The OECD collaborates closely with its five Key Partners Brazil, China, India, Indonesia and South Africa. These countries actively participate in OECD policy discussions, research, surveys, and statistical databases, contributing valuable perspectives while strengthening international cooperation and gradually aligning with OECD standards and best practices. Let’s have a quick look at the 5 key partners of OECD: -
- Brazil: Brazil is an OECD Key Partner that collaborates on economic reforms, taxation, public governance, environmental sustainability, education, and investment policies while actively participating in OECD committees and policy discussions.
- China: China engages with the OECD on trade, innovation, digital economy, green development, and economic policy analysis, contributing valuable perspectives despite not being an OECD member country.
- India: India works closely with the OECD on taxation, digital economy, education, investment, governance, and sustainable development while participating in policy dialogues, economic survey, and statistical initiatives as a Key Partner.
- Indonesia: Indonesia cooperates with the OECD on economic growth, public sector reforms, education, investment, environmental protection, and governance, strengthening policy frameworks through regular collaboration and knowledge sharing.
- South Africa: South Africa partners with the OECD to improve economic development, public governance, investment, taxation, education, and inclusive growth while contributing to international policy discussions and research.
Background of Organisation for Economic Co-operation and Development [OECD]
The Organisation for Economic Co-operation and Development (OECD) was established when the secretary of the United States proposed massive financial aid to help Europe recover from World War 2. Gradually, it became an organisation which extended its operations beyond Europe. Let’s take a look at the background of OECD: -
1. Rebuilding Postwar Europe
The secretary of the United States proposed massive financial aid to help Europe recover from World War 2. For this reason 16 European nations formed the Organisation for European Economic Co-operation on 16 April 1948.
2. Transitioning to a Global Mission
By the late 1950s, Europe's economy had successfully recovered from the effects of war. This motivated the western leaders to create a permanent global forum for coordination of economic policies beyond Europe.
3. Global Outreach
The organization gradually moved past the European Union by admitting Japan in 1964, Australia in 1971 and New Zealand in 1973. Gradually, the organisation started its global outreach and participated in international economic activities.
4. Post Cold War Growth
In the 1990s, the Soviet Union gained independence and countries such as Czechia, Hungary, Latvia, Lithuania. Countries such as Mexico, South Korea, Costa Rica also joined which made the organisation strong in the Americas and Asia.
5. Current Scenario
OECD has grown from its original 20 founders to now having 38 member states spanning across Europe, the Americas and Asia-Pacific region. Currently, the organisation is actively seeking to integrate more Asian countries
Objectives of Organisation for Economic Co-operation and Development (OECD)
The OECD's primary objective is to develop international standards, promote their effective implementation, and assist countries in building stronger, fairer, and more sustainable societies through evidence-based policies and international cooperation. The Organisation for Economic Co-operation and Development (OECD) aim at enhancing sustainable economic growth, expansion of world trade, fighting financial crime, supporting developing economies and setting standardized global policies. It also does work to accelerate socio-economic development. Let’s take a look at the objectives of OECD: -
1. Sustainable Economic Growth
OECD aims to achieve the high level of sustainable economic growth in member countries. It wishes to maintain financial stability to raise the standard of living for citizens and contribute to the development of the world economy, including non-member developing countries.
2. Setting Standardized Global Policies
The OECD creates uniform global policies for emerging fields such as artificial intelligence, digital privacy, and environmental sustainability while working alongside international organizations, including the United Nations to promote global policy cooperation. It also uses transparent metrics to encourage governments to improve their domestic policies.
3. Expansion of World Trade
OECD works for the expansion of world trade on a non-discriminatory basis. It supports international obligations to reduce trade barriers and open markets fairly. It ensures justice through strict trade laws which countries are bound to follow.
4. Socio-Economic Development
OECD helps both member and non-member countries to coordinate policies to reduce poverty and inequalities. It creates evidence based international guidelines on curbing socio-economic challenges.
5. Fighting Financial Crime and Tax Evasion
OECD fights financial crime and tax evasion. They implement rules such as the global minimum tax to prevent multinational corporations from shifting profits to tax havens. This helps combating bribery, money laundering and illicit financial flows across borders.
6. Supporting Developing Economies
OECD supports non-member developing nations in strengthening their economies to reduce poverty. It manages the Development Assistance Committee to monitor and enhance official global development aid.
Conclusion
The Organisation for Economic Co-operation and Development was established to help Europe recover from the destruction of World War II. To support this cause, many countries mainly from Europe joined. Gradually, many countries outside the continent joined the OECD organisation to accelerate world trade, international economic welfare and uplifting the growth of developing countries. The Organization for Economic Co-operation and Development (OECD) currently consists of 38 member countries such as the United Kingdom, Canada, New Zealand, Costa Rica, Chile, Turkey, Japan and Australia are a part of the organisation. OECD aims at accelerating sustainable economic growth, expansion of world trade, setting standardized global policies and fighting financial crime.
Frequently Asked Question (FAQ)
The full form of OECD stands for Organisation for Economic Co-operation and Development. OECD is an international organization of 38 member countries that promotes economic growth, global trade, sustainable development, and effective public policy.
OECD countries are the 38 member nations of the Organisation for Economic Co-operation and Development (OECD). These countries work together to promote economic growth, international trade, good governance, sustainable development, and evidence-based public policies. OECD members collaborate by sharing data, developing international standards, and addressing global economic and social challenges.
The OECD promotes economic growth, improved living standards, and sustainable development by conducting policy research, setting international standards and providing recommendations to help governments address global economic and social challenges.
The OECD is primarily funded through mandatory contributions from its 38 member countries. These contributions are calculated based on the size of each country's economy. OECD members may also provide voluntary funding for specific OECD programs and initiatives.
No, India is not an OECD member. However, India is one of the OECD key partners and actively participates in policy discussions, research initiatives, surveys and statistical programs while cooperating on global economic and governance issues.
The OECD average is the mean value of a specific indicator across OECD member countries for which data are available. It serves as a benchmark to compare a country's economic, social, educational or environmental performance with the average performance of OECD members.