09 JUNE 2006

BRIEFING DOCUMENT ON THE ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD) TO THE PORFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION BY THE DEPARTMENT OF FOREIGN AFFAIRS

 

1.            Background on OECD

The OECD's "fundamental mission is to enable Members to consult and co-operate with each other so as to achieve the highest possible sustainable economic growth, improve the economic and social well-being of their populations, and contribute to development worldwide". In order to fulfil this mission the OECD provides its members with a forum for discussion and consultation to exchange information and experiences and compare points of view. Its decisions are taken on the basis of consensus, and in principle all areas of government action with the exception of defence lie in the scope of the organisation's activities.

 

The strength of the OECD lies in its data-collecting capacities, which permits the drawing of international comparisons, analyses and the forecasting functions for which the organisation has become known. One of the key weakness of the organisation is that in its outreach to developing countries, there is little scope for direct influence as they are not founding members of its principles.

 

2.         The OECD's Structure

 

Council - the highest decision-making body of the organisation which meets on Ministerial level every spring.

 

Secretary General and Secretariat of the OECD - the Secretariat is composed of a General Secretariat, and of some 10 Directorates covering areas such as Economics; Environment; Development Cooperation; Trade; Financial, Fiscal and Enterprise Affairs; Science, Technology and Industry; Education, Employment, Labour and Social Affairs; Food, Agriculture and Fisheries.

 

The Directorates service the Committees of the OECD, which number close to 200, and are composed of the representatives of Member states. It is at the Committee level that experts or permanent delegates to the OECD of the member states discuss the various reports and issues put on the table by the Secretariat and take appropriate decisions.  

 

Finally the OECD also has a number of semi-autonomous bodies, among these the International Energy Agency, the Nuclear Energy Agency the Development Centre, and the Club du Sahel.

 

Extensive information on the structures and activities of the OECD can also be found on their website: http://www.oecd.org

 

3.         South Africa’s Relations with the OECD

 

Over the past few years there has been a steady increase in the level of interaction between members of our government departments and the OECD, which reflects a growing interest from our part in tapping into the organisation's wide range of expertise and information. These interactions represent, by and large, "informal relationships".

 

Informal relationships consist of participation in workshops and seminars organised by the OECD in which members and non-member countries interact, or meetings arranged by the Embassy for visitors from South Africa with staff from particular Directorates of the OECD Secretariat. The Embassy also transmits publications of the OECD to government departments on a regular basis and by request.

 

"Formal relationships", which imply that South Africa has entered into a contractual relationship with a structure of the OECD such as a Committee, scheme or working party are still somewhat limited. They are concluded on a strict application and approval basis between non-member states and the OECD, and are based on the criteria of the non-member being a major player in the area concerned, as well as a perceived mutual benefit for the non-member and the OECD.

 

3.1        Policy Context for South-Africa OECD Engagement

 

The February 2005 Cabinet Decisions which provide the policy context for South-Africa OECD relations within the context of the North-South Dialogue are as follows:

 

§         South Africa is to take an incremental approach moving closer to the OECD

§         South Africa, through the Department of Foreign Affairs is to immediately join the Development Center of the OECD

§         National Departments should undertake to explore the viability of OECD engagements in their area of scope and participate in the relevant processes

§         The location of the OECD portfolio will be under the National Treasury

§         A possible high-level fact finding mission to the OECD was noted by Cabinet

 

3.2        The Development Centre: http://www.oecd.org/dev/cendev/

 

The Development Centre of the OECD is one of the semi-autonomous bodies of the organisation, with its own membership, personnel and activities. Established in 1962, its purpose is "to bring together the knowledge and experience available in Member countries of both economic development and the formulation and execution of general economic policies; to adapt such knowledge and experience to the actual needs of countries or regions in the process of development and to put the results at the disposal of the countries by appropriate means".

 

To accomplish this purpose, the Development Centre engages in extensive research and policy dialogue on issues of global, regional and local importance to developing countries. In 1997 the Centre published a report "The World in 2020: Towards a New Global Age", which examines the linkages between developing and industrialising economies and presents two scenarios over the next 25 years. The Centre publishes extensively on a number of important subjects and most of its publications are available to the public.

 

The Development Centre has opened its membership to non-member countries. South Africa has joined the Centre and has officially been a member since 21 April 2006.

 

The Development Centre (DC) is an interface between OECD Member countries and the emerging and developing economies of Africa, Asia and Latin America.  The Centre’s work complements that of the overall OECD Development Cluster and the other committees of the organization.  African economies are the object of special attention.  Membership of the Development Centre therefore provides a greater role for the country in monitoring and guiding the OECD contribution to the aims of the NEPAD.