THE Secretary-General of the OECD Angel Gurría came to Dublin to present the OECD’s Economic Survey of Ireland 2009 to the Minister for Finance. He was to also hold discussions with the Minister for the Environment, Heritage and Local Government on a pending report Environmental Performance Review of Ireland due for release in 2010. He dropped into the Institute for International and European Affairs at breakfast time this morning to speak of the evolving relationship between the OECD and the G-20 – the group of 20 finance ministers and central bank governors established in 1999 to act as a forum for twenty industrialized and developing economies across the world. This morning’s gathering attracted the Ambassadors to Ireland from Germany, Switzerland, South Korea and Croatia.
I’ll begin by using the following table to illustrate the membership of each grouping and where they overlap:
| G-8 | G-20 | OECD |
| Canada France Germany Italy Japan United Kingdom United States Russia + European Union | Argentina Australia Brazil China France Germany India Indonesia Italy Japan Mexico Russia Saudi Arabia South Africa South Korea Turkey United Kingdom United States + European Union European Central Bank + International Monetary Fund + World Bank | Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovakia South Korea Spain Sweden Switzerland Turkey United Kingdom United States |
The G-20
The G-20 has progressed a range of issues since being set up in 1999, including agreement about policies for growth, reducing abuse of the financial system, dealing with financial crises and combating terrorist financing. The G-20 also aims to foster the adoption of internationally recognized standards through the example set by its members in areas such as the transparency of fiscal policy and combating money laundering and the financing of terrorism. In 2004, G-20 countries committed to new higher standards of transparency and exchange of information on tax matters. This aims to combat abuses of the financial system and illicit activities including tax evasion. The G-20 also tries to play a significant role in matters concerned with the reform of the international financial architecture.
The G-20 has aimed to develop a common view among members on issues related to further development of the global economic and financial system and held an extraordinary meeting in the margins of the 2008 IMF and World Bank annual meetings in recognition of the current economic situation. At this meeting, in accordance with the G-20s core mission to promote open and constructive exchanges between advanced and emerging-market countries on key issues related to global economic stability and growth, the Ministers and Governors discussed the present financial market crisis and its implications for the world economy. They stressed their resolve to work together to overcome the financial turmoil and to deepen cooperation to improve the regulation, supervision and the overall functioning of the worlds financial markets.
Role of OECD
Nowadays OECD acts as a facilitator, or hub, for members to compare and analyse policy perspectives, identify practices that can be deemed ‘best’ and coordinate domestic and international policies aimed at social and economic progress.
Gurría contends that new structures, relationships and approaches to coordination are necessary to deal with the prevailing crisis and that the OECD would advocate on behalf of those nations that are not members of the G-8 or -G20. The world is a series of network and there is a need for international organisations such as his own, IMF, WTO, ILO to cross-pollinate their approach to world issues.
The G-20, he believes, will become the global platform at which to resolve all types of issues, except those with a military facet. Example of the current agenda include exit strategies for the public intervention into the financial crisis, climate change, jobs, tax havens, elimination of bribery and corporate governance. Progress, has been commendable in some areas but the capacity to deliver outcomes in many others “is excellent” according to Gurría. The OECD input is in the form of evidence-based analysis and a facility for countries to stay connected to each other through OECD being an additional channel to support balanced and sustainable growth.
One of the offerings of the OECD is the peer review of member countries across a range of topics – health, environment, governance and others. Interestingly, the only one of the 30 members that is not peer reviewed is the United States.
The blame for the financial crisis is split between the public and private sectors. The former taking the hit for failure of regulation and the latter culpable for lack of supervision and ineffective risk management.
The Organisation for Economic Cooperation and Development [OECD] traces its roots to 1948 when the Organisation for European Economic Cooperation [OEEC] to help administer the Marshall Plan, the initiative of the United States Government to help European countries recover after World War II and to repel the threat of communism. It has 30 member countries that accept representative democracy and free markets that since 1961 include non-European states. Chile, Estonia, Israel, Russia and Slovenia have started accession talks to become members. It was founded in France and is headquartered in Paris. It has a budget of €320 million and a staff of 2,500 persons. Its budget is about one third that of FÁS and a similar staff headcount.
Angel Gurria (59), became Secretary-General of the OECD in 2006. He is a former Mexican Minister for Foreign Affairs and Finance. He has represented Mexico on the board of The World Bank and the International Monetary Fund.
Ireland’s Permanent Delegate (Ambassador) to the OECD in Paris is Paul Murray.
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