Introduction of OECD standards

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OECDOn August 7 2015 Organization for Economic Co-operation and Development (OECD), published three new documents: “Practical guidance on implementation of automatic exchange of financial information for tax purposes”, “Report on programs of voluntary disclosing of information on offshores” and “Pattern record on automatic information exchange”. You can read full version of standards here.

The mission and values of OECD, business profile

The main mission of OECD is contribution in economical growth of OECD member countries and increasing of their contribution in global economy growth and development, reduction of poverty in countries which are not members of Organization.

Within OECD activities the regulation of almost all most important issues of world economic development is carried out, economical trends of certain countries are analyzed and predicted, the development of theoretical and practical methods approaches to solving world economy problems, that are later codified in international agreements and conventions. The final objectives of the activities of organization, stated in OECD ruling document, Convention, are:

  • Providing of the highest and most sustainable economy growth, employment, life standards in member countries, financial stability support, necessary for world economy development;
  • Assistance in a significant commercial contribution in the process of economy growth of both member and non-member countries;
  • Assistance in the development of world trading on various, non-discriminative basis in compliance with international commitments.

Today, the OECD aims to solve economic problems of not only one continent, Europe, like its predecessor (OEEC).

History

During the period after World War II, the states became economically interdependent. The history of the OECD starts in April, 1948, when the Organization for European Economic Cooperation (OEEC) was established. The OEEC objectives included economic integration of Western Europe, development of a vast market with the elimination of quantitative restrictions within it. In the late 50’s – early 60’s dynamic development of major international financial institutions (IMF, World Bank, Bank for International Settlements) began, as well as the development of world economic relations and accelerated movement of capital. In this regard there was a need to review the mission of the OEEC. Thus, on 14 December 1960 in Paris, the Convention on creation of Organization for Economic Cooperationand Development (OECD), implemented on 30 September 1961, was signed.

OECD was intended and established as economical duplicate of military-political block NATO, member countries of which are characterized by the affinity of economy systems, comparatively high level of economic progress, interdependence of national economies and the similarity of problems they face.

In the changing international context stepwise evolution of OECD mission was going on, along with expanding of its objectives and tasks, business segments and growing of its partners and member countries.

Today within the OECD activities the regulation of almost all major issues of world economic development is carried out, trends of economy growth in particular countries is analyzed and forecasted, theoretical and practical approaches to solving the world’s financial and economic problems are developed, which are subsequently codified in international treaties and agreements.

OECD includes:

  • Reports of the diversity in the realm of politics;
  • Principles of Corporate Governance
  • Anti-Corruption Agreement
  • Guidelines for Multinational Enterprises
  • Tax transparency and information exchange
  • Economic forecasts
  • The data and statistical products
  • The policy of the country, studies and surveys

Statistics, its role and priorities

Among the variety of OECD committees it`s worth to single out The Committee on Statistics and Statistical Policy (CSSP). CSSP and Statistics Management (SM) coordinate statistics within the OECD to avoid doubling in OECD Departments, to make the process of communication and data exchange easier, to increase the growth and representing of data, for quality warranty; SM is responsible for “Quality Reviews”.

In this globalized world international comparisons are important more than ever. They help us to make decisions about the best place of living, where it`s better to raise children and develop high-yielding business, have a holiday, etc. OECD is the reliable source of high quality international consistent statistical data with full-scale range and long-time prospect.

The role of statistics is to keep the public informed in general and report on the definition of policies in all critical areas of politics in particular.

Member countries of the OECD and the Strategy of Expanding

Today 34 countries with developed democratic institutions and market economies are members of the OECD. OECD keeps terms with more than 70 non-member countries of OECD, and 24 countries take part in the activities of various OECD committees as observers. The share of OECD countries is:

  • 17,7% of the world population
  • More than 60% of world GDP

Member countries Date of joining Member countries Date of joining Member countries Date of joining
Australia 7 June 1971 Italy 29 March 1962 USA 12 April 1961
Austria 29 September 1961 Canada 10 April1961 Turkey 2 August 1961
Belgium 13 September 1961 Korea 12 December 1996 Finland 28 January 1969
United Kingdom 12 April 1961 Luxembourg 7 December 1961 France 7 August 1961
Hungary 7 May 1996 Mexico 18 May 1994 Czech Republic 21 December 1995
Germany 27 September 1961 Netherlands 13 November 1961 Chile 7 May 2010
Greece 27 September 1961 New Zealand 29 May1973 Switzerland 28 September1961
Denmark 30 May1961 Norway 4 July 1961 Sweden 28 December 1961
Israel 7 September 2010 Poland 22 November 1996 Estonia 9 December 2010
Ireland 17 August 1961 Portugal 4 August 1961 Japan 28 April 1964
Iceland 5 June 1961 Slovakia 14 December 2000
Spain 3 August 1961 Slovenia 21 July 2010

The strategy of “global partnership” of OECD

The strategy of OECD expanding is much wider than its relations with non member countries. Today the transfer from the idea of “expanding” to the ideas of “global interaction”, “global partnership” and “advanced participation”. The notion of global interaction allows considering two main dimensions of expanding – expanding on the basis of the collaboration with non-member countries and development through the collaboration with other international organizations. This also gives the activities of OECD global nature and forms the basis for international collaboration, based on the principles of high-profile collaboration and “transparent coordination”.

OECD member countries and countries that belong to the Strategy of expanding and global partnership

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OECD members

Countries of the “first wave” of expansion (Russia, Chile, Estonia, Israel and Slovenia). Today only Russia is not included in the Organization

Countries of the “first wave” of expansion (Brazil, China, India, Indonesia and South Africa).

Check OLIESERVE news feed to follow main principles and development of information exchange on taxpayers between OECD countries. Next time we`ll tell you more about new OECD guidelines and their influence on planning and implementation of Your business.