OECD’s ‘new’ narrative on economic policy isn’t exactly new

Context

• OECD has invited experts to contribute their proposals on what needs to change in economic policy and policymaking. Their recommendations were summarised in the report published.

The report

• The Organisation for Economic Co-operation and Development (OECD) recently came out with a new report titled Beyond Growth.
• It is the product of an existential crisis faced by yet another institution in the wake of the damage wrought by the novel coronavirus disease (COVID-19) pandemic to society and the global economy.
• The pandemic revealed that our public health infrastructure is in a pitiable state. COVID-19 also showed the damaging effects of eroded welfare states and widespread income inequality.
• This mainstream branch of economic thought is skeptical of government spending and regulation. When coupled with neoliberalism, it overemphasises the power of the private sector to fix social and economic problems.
• The report suggests that the idea of ‘market competition’ is now simply too narrow as a concept, and focus should shift on examining the role of power in the economy.

Recommendations

The report recommends focusing on four objectives:

• Environmental sustainability: A path of declining greenhouse gas emissions
• Rising wellbeing: An improvement in the quality of life of society as a whole
• Falling inequality: Reduction in income gaps between the richest and the poorest
• System resilience: The economy’s ability to withstand shock

What is OECD?

• The Organisation for Economic Co-operation and Development (OECD) is a group of 37 member countries that discuss and develop economic and social policy.
• The Organisation for Economic Co-operation and Development (OECD) was established in 1960.
• It was established by 18 European nations, plus the United States and Canada.
• The organization is headquartered in the Chateau de la Muette in Paris, France.
• Members of the Organisation for Economic Co-operation and Development (OECD) are typically democratic countries that support free-market economies.

• India is not a member of OECD.

Economic Status

• As of 2017, the OECD member countries collectively comprised 62.2% of global nominal GDP (US$49.6 trillion) and 42.8% of global GDP (Int$54.2 trillion) at purchasing power parity.

OECD black list

• The OECD maintains a "black list" of nations that are considered uncooperative tax havens.
• There are not any nations currently on the list since by 2009.