Indonesia has entered accession talks with the OECD, as it hopes to become one of the organization’s next member states. The OECD, or Organization for Economic Co-operation and Development, is a group formed of 38 democracies with market-based economies, sometimes referred to as “the rich country club”. They together seek to create policies that will advance their sustainable economic growth, using a forum for knowledge sharing on policy and best practices. In order for a new country to join the group, it must receive unanimous support from all OECD members.
“Indonesia’s application is the first from Southeast Asia, one of the most dynamic growth regions of the world,” said OECD Secretary-General Mathias Cormann in a statement on February 20. “As the largest economy in Southeast Asia and the world’s third-largest democracy, Indonesia is a significant global player, providing important leadership across its region and beyond.”
The following chart provides a brief overview of the OECD’s timeline. Formerly known as the Organisation for European Economic Co-operation (OEEC), the group was formed in 1948 to administer aid from the U.S. and Canada for the rebuilding of Europe after the Second World War with the Marshall Plan. In 1961, the OECD was ratified by 18 European nations, plus the United States and Canada. Over the years, the group has implemented a number of strategies, on topics from education (for example, with PISA standardized tests) to tax transparency and artificial intelligence.
At the same time this infographic visualizes clearly where this ‘rich-country club’ resides. According to the U.S. department of state official website, the group currently accounts for only 18 percent of the world’s population. Despite this, “OECD member countries account for three-fifths of world GDP, three-quarters of world trade, over 90 percent of global official development assistance [and] half of the world’s energy consumption.”
