OECD at 50

If nothing else, the Organization for Economic Cooperation and Development (OECD) is known in Germany for the famous PISA studies it releases every three years. The studies are comparisons of the literacy, math and science skills of 15-year olds in all 34 member countries.

The PISA study (short for Program for International Student Assessment) is meant to show how well countries educational systems prepare young people for a lifetime of learning in a global world. The assumption is that pupils who score better on the tests lead to higher economic growth down the line, and many people pay close attention to the results of the study.

That's particularly the case in Germany, where the results of the last few PISA studies haven't been encouraging. The OECD says that Germany's educational system connects cultural and social backgrounds with success later in life and has repeatedly called on politicians to do something about such a fundamental social problem.

From Marshall to modern

Education, however, is not the organization's only focus. The body describes itself as aiming for "better global economic cooperation […] in a world in which the challenges facing nations and the world are interconnected like never before."

The OECD says the most important topics of our time relate to energy and securing food for the world, as well as the flow of capital around the world and the environment. The organization sees itself as the place where countries meet "to make global progress."

The OECD dates back to the ruins of Europe following World War II. In April 1948, 18 countries founded the Organization for European Economic Cooperation (OEEC), which had the task of developing a joint concept to rebuild Europe.

This was mainly achieved by administrating money from the Marshall Plan, the $13 billion aid package from the United States for Western European nations. The idea of the OEEC was to allow the affected countries to take part in how the money should be divided.

More than just a name change

But even as the Marshall Plan was phased out, the need for a forum to discuss economic and political issues still existed. To meet this demand, in 1961 the OEEC became the OECD. The name change brought about a new opportunity for countries outside of Europe, as it was no longer an organization solely for European economic cooperation.

"From Mexico to Japan, from Iceland to New Zealand, OECD members believe nations achieve prosperity through free trade and investment," states the OECD's 50-year anniversary video.

Today, 34 industrialized nations are represented at the OECD's headquarters in Paris, all of which have committed themselves to a market economy and democracy.

It is something of an exclusive club for rich and developed nations. None of its members are African nations, and Chile is the only country from South America. Russia is in the process of joining the OECD, and the most important newly industrialized nations - China, India and Brazil - aren't represented.

The OECD has taken the initiative to provide global answers to pressing global problems. It also maintains partnerships with non-members and with other organizations. Additionally, the OECD is proud of the fact that it has set a global standard for fighting corruption and good governance.

'A global forum'

According to the OECD's secretary general, Angel Gurria, the body defines itself as "a global forum for new ideas to achieve prosperity in developed and developing country," a platform for the exchange of ideas that more resembles as constant assembly of international experts rather than an organization.

With the exception of defense issues, nearly every imaginable policy area is covered at the OECD. Over 200 working groups and committees see to it that each year, the body produces around 300 studies per year, ranging from health and aging societies to tax loopholes and sustainable economies.

The lists comparing and ranking nations in a variety of categories usually generate high media interest and political pressure in countries which hope to move up the OECD's lists.

The OECD is financed by the dues of member countries and has a budget of around 342 million euro ($479 million). The United States contributes the most to the total budget (around 25 percent), followed by Japan (16 percent) and Germany (9 percent).

Author: Sandra Petersmann /mz
Editor: Andreas Illmer