The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organisation with 38 member countries, headquartered in Paris, France. Its core mission is to promote policies that will improve the economic and social well-being of people around the world, often summarized as "Better Policies for Better Lives."
The OECD's history traces back to the post-World War II era. It is the successor to the Organisation for European Economic Co-operation (OEEC), which was established in April 1948 to coordinate the allocation of American and Canadian aid under the Marshall Plan for European reconstruction. The OEEC's purpose was fulfilled by the late 1950s, and the organisation was reformed to take on a broader, more global mission. The Convention transforming the OEEC into the OECD was signed on 14 December 1960, and the OECD officially superseded the OEEC on 30 September 1961.
The organisation works as a forum and knowledge hub, providing data, analysis, and policy advice through its over 300 committees and working groups. Its overarching decision-making body is the OECD Council, composed of ambassadors from member countries. It sets international standards, such as the OECD Anti-Bribery Convention and the Two-Pillar Solution for global tax reform.
For an informed Indian reader, the OECD is highly relevant as India is one of the five Key Partners (along with Brazil, China, Indonesia, and South Africa) that participate in the OECD's daily work and policy discussions. India also joined the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) in 2021. Recently, the OECD Model Tax Convention saw a 2025 Update (published November 19, 2025), which introduced a new analytical framework for determining a Permanent Establishment (PE) in cross-border remote work, including a 50% working time benchmark for Article 5. Additionally, the OECD Guidelines for Multinational Enterprises were updated on 8 June 2023, and renamed Guidelines for Responsible Business Conduct.