In Argentina’s case, late February 2016 would mark the start of the process for becoming a new OECD member. Source: Huffington Post based on national statistics. Foreign Direct Investment in Selected Countries When Mexico and Chile became OECD members, FDI increased, but this was also the case in countries such as Brazil, which is not part of the organization.įigure 1. Regardless, it is clear that OECD membership is an important factor for increasing FDI, although it is not the only one. In a way, the OECD is a “quality seal” in such matters. For some organizations, OECD membership is one of the necessary conditions for investing in a given country. However, one of the points that is most significant for countries such as Argentina is the international recognition that comes with membership, in particular the possibility of attracting foreign direct investment (FDI). There is also a work area involving technical meetings on policies that member states have agreed on. To carry out these reviews, the OECD sends experts to a given country-these are generally from another member state, 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 education policies, among other development-related areas.īecoming an OECD member also leads to a greater variety of statistics being available on the country in question: the organization publishes information regarding its members on a broad spectrum of topics, including agriculture and food, development, education, gender studies, and macroeconomic data. Another point in common with the IMF is that the OECD publishes twice-yearly macroeconomic reviews ( OECD Economic Outlook), which analyze the main global trends and examine the economic policies that would be required to foster high, sustainable growth in member countries. This aspect is similar to the reviews carried out by the International Monetary Fund (IMF) within the framework of Article IV of its Articles of Agreement. In this regard, the OECD creates policy recommendations following the assessments that its experts carry out in member countries. OECD members become benchmark countries that set quality standards in different areas of trade and investment. The OECD emerged after functioning for 12 years as the Organisation for European Economic Co-operation (OEEC), which was founded to help implement the Marshall Plan for the reconstruction of Europe after the Second World War. The OECD provides a forum where governments can work together to share experiences and seek solutions to common 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 issues. The OECD was created in 1961 with the goal of promoting policies that improve people’s economic and social well-being.
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