The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organisation with 38 member countries headquartered in Paris, France. It was formally established in September 1961, superseding the Organisation for European Economic Co-operation (OEEC). The OEEC was originally created in April 1948 to administer the Marshall Plan for the reconstruction of Europe after World War II. The OECD expanded this initial focus to stimulate economic progress and world trade, aiming to foster economic growth and development in a globalized economy.
The OECD functions as a forum and knowledge hub, providing data analysis, sharing best practices, and offering advice on public policies and international standard-setting. Its structure includes the overarching decision-making body, the OECD Council, and over 300 substantive committees staffed by subject-matter experts. The aims, outlined in Article 1 of its Convention, include achieving the highest sustainable economic growth and contributing to the expansion of world trade. Related institutions include the International Energy Agency (IEA), established in 1974, and the Financial Action Task Force (FATF). The OECD also collaborates closely with the G20 and includes India as a key partner in its "enhanced engagement" program.
Recently, the OECD has been a central player in global tax reform, releasing a Pillar Two package in September 2026 under the OECD/G20 Inclusive Framework to implement global minimum tax rules. Furthermore, the OECD Model Tax Convention saw a comprehensive revision in the 2025 Update (approved 18 November 2025), which clarified the rules for a permanent establishment when employees work from home. The Recommendation on Artificial Intelligence was also revised on 8 November 2023 and 3 May 2024 to update the definition of an "AI System" to cover generative AI.