Arman Onart, Fatih Can Balcı , Muratcan Arslan , Fatih Kaya

1. ITF212 - International TradeandInvestment OECD 30 May 2013 IzmirUniversity of Economics The Organisation for Economic Co-operation and Development Lecturer: Assoc. Prof. Dr. Hasan Fehmi Baklacı Arman Onart, Fatih Can Balcı , Muratcan Arslan, Fatih Kaya

2. ITF212 – International TradeandInvestment What is the OECD? • An Organisation of 30 member countries committed to democracy and the market economy • A provider of comparative data, analysis and forecasts • so that governments can: • - compare policy experiences • - seek answers to common problems • - identify good practice • - and co-ordinate domestic and internationalpolicies A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

3. ITF212 – International TradeandInvestment TheOECD’smission • Article 1 of the OECD Convention: • Support economic growth • Boost employment • Raise living standards • Maintain financial stability • Assist other countries’ economic development • Contribute to growth in world trade A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

4. ITF212 – International TradeandInvestment The OECD: What is it? • Triesto produce • Internationally agreed instruments • Anddecisions and recommendations • Focuseson economic and social issues like • Macroeconomics • International trade • Education • Development • Science and Innovation • Provides comparative data, analysis and forecasts, obtained from member countries to help other members increase policy effectiveness A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

5. ITF212 – International TradeandInvestment The OECD: What is it? (cont’d) • Databases: • OECD provides one of the world’s largest and most reliable sources of comparable statistical, economic and social data. • OECD databases span areas as diverse • national accounts, • economic indicators, • trade, employment, • migration, • education, • energy, • health • and the environment. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

6. ITF212 – International TradeandInvestment The OECD: What is it? (cont’d) • Secretariat: • Information, data and analysis provided by a secretariat in Paris. • The secretariat collects • data, • monitors trends, • make analyses • forecasts economic developments, • researches social changes • researches evolving patterns in • trade, • environment, • agriculture, • technology, • taxation A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

7. ITF212 – International TradeandInvestment The OECD: What is it? (cont’d) • Membership:  • is limited only by a country’s commitment to a market economy and a pluralistic democracy. • It is rich, in that its 30 members produce almost 60% of the world’s goods and services, but it is by no means exclusive. • Non-members: • are invited to subscribe to OECD agreements and treaties, and in exchange OECD shares expertise, data and analyses • more than 70 countries worldwide, from Brazil, China and Russia to least developed countries in Africa. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

8. ITF212 – International TradeandInvestment An organisation with global reach OECD Member Countries A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

9. ITF212 – International TradeandInvestment The OECD: History • OECD grew out of the Organisation for European Economic Co-operation (OEEC) which was set up in 1948 • OEEC was started to co-ordinate the Marshall Plan for the reconstruction of Europe after World War II • OECD was created in as a economic counterpart to NATO and took over from OEEC in 1961 • Marshall Plan: Post-war European Aid Program A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

10. ITF212 – International TradeandInvestment Our Environment • Make markets work for a healthier environment • Use science and technology to benefit people everywhere • Cut wastage and pollution A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

11. ITF212 – International TradeandInvestment Economics and Trade • Analyse and publish comparative data • Produce forecasts • Develop policies for growth and stability • Foster open markets • Encourage expansion of financial services • Promote cross-border investment • Share best practices A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

12. ITF212 – International TradeandInvestment Social Cohesion • Ensure equal access to education for all • Promote effective and accessible health systems • Fight social exclusion and unemployment • Bridge the “digital divide“ between rich and poor A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

13. ITF212 – International TradeandInvestment Governance • Promote effective public administration • Encourage companies to run their affairs better • Ensure transparent and fair tax systems • Foster fair competition • Fight corruption and money-laundering • Promote high ethical standards • Encourage citizen-participation in policy-making A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

14. ITF212 – International TradeandInvestment Governance • Promote effective public administration • Encourage companies to run their affairs better • Ensure transparent and fair tax systems • Foster fair competition • Fight corruption and money-laundering • Promote high ethical standards • Encourage citizen-participation in policy-making A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

15. ITF212 – International TradeandInvestment The OECD: How it works • Three main bodies in OECD • Council, • Committees, • Secretariat • Council: • Holds the decision making power in OECD • Made up of one representative from each member country plus a representative from European Commission • Meets regularly and decisions are taken by consensus • Meets once a year at the ministerial level to deicide on key issues and set priorities for OECD work A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

16. ITF212 – International TradeandInvestment The OECD: How it works (cont’d) • Secretariat: • Carries the work mandated by the Council • Some 2 000 staff of the OECD secretariat in Paris work to support the activities of committees. • Staff includes about 700 economists, lawyers, scientists and other professionals, mainly based in a dozen substantive directorates, who provide research and analysis. • The secretariat is headed by a Secretary-General, assisted by four Deputy Secretaries-General. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

17. ITF212 – International TradeandInvestment The OECD: How it works (cont’d) • Secretariat: • The OECD works in two official languages: English and French. • Staff members are international civil servants • No quota system for national representation A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

18. ITF212 – International TradeandInvestment The OECD: How it works (cont’d) • Committees: • Composed of representatives of the 30 member countries to advance ideas and review progress in specific policy areas, such as • economics, • trade, • science, • employment, • education • financial markets. • There are around 200 committees, working groups, and expert groups in all • Senior officials from national governments come to OECD committee meetings each year to • request, review • contribute to work undertaken by the OECD Secretariat. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

19. ITF212 – International TradeandInvestment Who drives the OECD’s work? Council Annual budget: 336 million euros funded by member countries Oversight and strategic direction Representatives of member countries and of the European Commission; decisions taken by consensus Committees Secretariat Discussion and implementation Analysis and proposals Representatives of member countries and of invited non-Members work with the OECD Secretariat on specific issues Secretary-General Deputy Secretaries-General Directorates A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

20. ITF212 – International TradeandInvestment The OECD: Budget & Funding • Fundedby its 30 member countries • National contributions to the annual budget are based on a formula related to the size of each member’s economy. • Some contributors to budget • 1) United States 24.975%  • 2) Japan 17.467% • 3) Germany 9.383 % • 4) United Kingdom 7.206 % • 5) France 6.716 % • 20) Turkey 0.793 % • With the approval of the Council, countries may also make separate contributions to particular programs not funded from the main budget. • The size of budget – 336 mil euros in 2006, 330 mil euros in 2005 A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

21. ITF212 – International TradeandInvestment The OECD: The Work • Unlike the World Bank or the IMF, the OECD is not a financing institution (do not give money) • OECD work starts with • Data collection and analysis then • Discussion of policy and decision making then • Implementation • Mutual examination by governments, multilateral surveillance and peer pressure to conform the implementation of decisions A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

22. ITF212 – International TradeandInvestment The OECD: The Work • Sometimes negotiations where OECD countries agree on rules of the game for international co-operation to culminate formal agreements or standards, for example • on combating bribery, • on export credits • on capital movements, • on international taxation • on corporate governance • on environmental practices, etc. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

23. ITF212 – International TradeandInvestment OECD’s Way of Working Data Collection Analysis Discussion Decisions Implementation Peer reviews, multilateral surveillance A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

24. ITF212 – International TradeandInvestment Working with Governments • Sharing information and experience • Country and region-based co-operation programmes • Peer review and surveillance A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

25. ITF212 – International TradeandInvestment Working with civil society • Consulting with business • represented by the Business and Industry Advisory Committee • Consulting with labour • represented by the Trade Union Advisory Committee • Expanding relations with civil society • Making information available to the public on www.oecd.org • Public comment always welcome! A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

26. ITF212 – International TradeandInvestment The OECD: Directorates • There are 16 directorates under secretariat • Development Co-operation Directorate • Economics Department • Directorate for Education • Directorate for Employment, Labour and Social Affairs • Center for Entrepreneurship, SMEs and Local Development • Environment Directorate • Directorate for Food, Agriculture and Fisheries • Directorate for Financial and Enterprise Affairs • Public Affairs and Communications A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

27. ITF212 – International TradeandInvestment The OECD: Directorates (Cont.) • Public Governance and Territorial Development Directorate • Center for Tax Policy and Administration • Directorate for Science, Technology and Industry • Trade Directorate • Executive Directorate • Center for Co-operation with Non-Members • Statistics Directorate A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

28. ITF212 – International TradeandInvestment The OECD: Associated Organizations • There are 6 other organizations associated with OECD • Development Center • carries out comparative analysis of development issues and promotes informal policy dialogue with emerging and developing countries • Non-OECD countries Brazil, Chile, India, Romania, South Africa and Thailand are members of the Centre • Center for Educational Research and Innovation • Investigates long-range trends and innovations in education A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

29. ITF212 – International TradeandInvestment The OECD: Associated Organizations (Contd) • International Energy Agency • Nuclear Energy Agency • Sahel and West Africa Club • supports the efforts of 17 African countries to define and implement medium and long-term development strategies for the region • European Conference of Ministers of Transport • an independant body linked to the OECD that deals with issues of improvement of all forms of transport. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

30. ITF212 – International TradeandInvestment The OECD: Associated Organizations (Contd) • International Energy Agency: • created after the 1974 oil crisis to co-ordinate energy policies. • under the administrative umbrella of the OECD Secretariat but managed independently. • Founded largely around the need for an emergency sharing system in case of energy disruptions, • It produces monthly Oil Market Reports and an annual World Energy Outlook • the 26-member IEA has a broad mandate • to consider means of improving energy supply • enhancing efficient energy use • integrating energy and environmental policies • opening dialogue between energy producers and consumers within and beyond its own membership. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

31. ITF212 – International TradeandInvestment The OECD: Associated Organizations (Contd) • Nuclear Energy Agency: • specialised agency within the OECD. • helps its 28 members to maintain and develop, through international co-operation, the scientific, technological and legal bases required for the safe, environmentally friendly and economical use of nuclear energy for peaceful purposes. • address issues like: • nuclear safety and regulation; • radioactive waste management; • radiological protection and public health; • nuclear science; • economics, resources and technology; • and legal affairs. A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

32. ITF212 – International TradeandInvestment Some OECD achievements • Anti-Bribery Convention • Polluter-Pays Principle (PPP) • Principles of Corporate Governance • Guidelines for Multinational Enterprises • Anti-spam Task force • Co-operation programmes with China, Russia and Brazil • MENA Initiative on Governance and Investment for Development in the Middle East and North Africa • Export Credit Arrangement • Model Tax Convention A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33

33. ITF212 – International TradeandInvestment Some OECD achievements • THANK YOU • FOR • LISTENING A. Onart || F. C. Balcı || M. Arslan || F. Kaya TheOrganisationforCo-operationand Development International Tradeand Finance, IzmirUniversity of EconomicsOECD 33