Organization for Economic Co-operation and Development (OECD)
The Organization for Economic Co-operation and Development (OECD) was officially established in 1961, when the Convention, signed by the members of the Organization for European Economic Cooperation (OEEC), Canada and the USA, entered into force. The purpose of the OECD, as well as its predecessor, the OEEC, was to encourage international co-operation in reconstructing economies and improving the economic and social well-being of people around the world.
Currently, there are 35 member states in the OECD. At the same time, there are ongoing accession negotiations with Columbia, Lithuania and Costa Rica.
For more information on OECD, please visit the website.
Co-operation between Lithuania and OECD
The intention to become a full member of the OECD is indicated in the programmes of the Lithuanian Government since year 2000.
In September 2002, an official declaration of Lithuania’s intention to become a full member of the OECD was presented to the Organization’s Secretary-General. In 2012, Lithuania renewed its membership application.
In May 2013, OECD Council resolution on Global Reach has been adopted, mentioning the initiation of more active Lithuania-OECD co-operation and a possibility to open accession negotiations with Lithuania in 2015. In October 2013, Lithuania-OECD Action Plan for 2014-2015 has been adopted, identifying the main areas of enhanced co-operation.
On 9 April 2015, OECD Council agreed to invite Lithuania for accession talks. The official decision was confirmed at the OECD Ministerial Council Meeting on 4 June 2015. During the meeting, the minister of foreign affairs of Lithuania signed the Agreement on the Privileges, Immunities and Facilities Granted to the OECD. The Agreement is an integral part of the accession documents.
On 8 July 2015, OECD Council adopted the Roadmap for the Accession of Lithuania to the OECD Convention, also known as the Accession Roadmap, where all membership obligations and accession procedures are laid out.
Afterwards, Lithuania prepared the Initial Memorandum, which holds Lithuania’s positions on more than 200 OECD legal acts. This leads to a series of technical reviews by OECD Committees, which collects further information about candidate country. OECD Committees may make recommendations for adjustments to legislation or policy to bring Lithuania closer to best practices.
On 13 December 2016, Government Prime Minister S. Skvernelis sent a letter to the OECD Secretary-General confirming the Lithuanian political aspirations to become a Member.
The OECD has been working closely with the Lithuanian authorities for the successful implementation of its Accession Roadmap, which provides for in-depth reviews of Lithuania 21 OECD substantive committees. OECD Committees examines Lithuania’s legislation and policies engaged in a wide range of areas, such as, Investment, Bribery in International Business Transactions, Corporate Governance, Financial Markets, Insurance & Private Pensions, Competition, Tax, Environment, Chemicals, Public Governance, Regulatory Policy, Statistics, Economics, Education, Employment, Labor & Social Affairs, Health, Trade, Export Credits, Fisheries, Science & Technology, Digital Economy Policy and Consumer Policy. Once all the Committees give their opinion, OECD Council will take a final decision.
Upon completion of the technical reviews, the Government of the Republic of Lithuania will submit Final Statement, which will become an integral part of the Accession Treaty. Then, the OECD Council will invite Lithuania to join the OECD Convention and the Mutual Agreement will be signed.
Benefits that Lithuania can draw from the OECD membership
The OECD serves as a forum, where the world’s more developed economies can share successful experiences and discuss best practices. The OECD brings together the expertise of a wide range of policy communities. This expertise is backed by high-quality and evidence-based analyses. The organization has contributed to governments’ efforts to design and implement better policies for better lives through high quality standards of public policy. The OECD acts on the principles of the highest standards and maximum transparency, while paying a lot of attention to the integrity of various economic areas and policy transparency.
Once Lithuania becomes an OECD member, it will have access to the OECD’s expertise. Lithuania will have an opportunity to influence global decision-making in economic and other areas of public governance. During the meetings of OECD bodies, Lithuanian experts will be able to benefit from the knowledge and expertise of their counterparts from other OECD member countries, and to apply this knowledge in Lithuania.
Quite often, the OECD membership is regarded as a good indicator of the country’s economic stability and reliability, thus the OECD membership may have a positive influence on incoming FDI rate and international borrowing costs. Once Lithuania becomes an OECD member, it will have the privilege to use the most recent OECD analyses and apply its best practices, while improving governance. The OECD also periodically publishes individual country studies, which offer a comprehensive analysis of OECD member countries’ economies and specific recommendations to improve economic efficiency and growth.