The laws on the ODA works of the OECD

OECD

• The Organisation for Economic Cooperation and Development

- To promote policies on the economic and social well-being of people around the world

• Since 1961 (by 18 European countries and the US, Canada)

- Originated from the Organisation for European Economic Co-operation

• Headquarters

- Paris, France

• Relations with other international organisations

- The International Labour Organisation, Food and Agriculture Organisation, International Monetary Fund, World Bank, International Atomic Energy Agency, and many other United Nations bodies

The legal basis of the OECD

• Convention on the Organisation for Economic Co-operation and Development

- The fundamental (international) law for the establishment of the organasation

- Paris, 14th December 1960

• Preamble and 21 Articles

- For the establishment of the OECD (the reconstitution of the Organisation for European Economic Co-operation)

The backgrounds of the law

Preamble of the Convention

Preamble of the law 1

• CONSIDERING that economic strength and prosperity are essential for the attainment of the

purposes of the United Nations, the preservation of individual liberty and the increase of

general well-being;

• BELIEVING that they can further these aims most effectively by strengthening the tradition of

co-operation which has evolved among them;

• RECOGNISING that the economic recovery and progress of Europe to which their

participation in the Organisation for European Economic Co-operation has made a major

contribution, have opened new perspectives for strengthening that tradition and applying it to

new tasks and broader objectives;

• CONVINCED that broader co-operation will make a vital contribution to peaceful and

harmonious relations among the peoples of the world;

• RECOGNISING the increasing interdependence of their economies;

Preamble of the law 2

• DETERMINED by consultation and co-operation to use more effectively their capacities and

potentialities so as to promote the highest sustainable growth of their economies and improve the

economic and social well-being of their peoples;

• BELIEVING that the economically more advanced nations should co-operate in assisting to the best

of their ability the countries in process of economic development;

• RECOGNISING that the further expansion of world trade is one of the most important factors

favouring the economic development of countries and the improvement of international economic

relations; and

• DETERMINED to pursue these purposes in a manner consistent with their obligations in other

international organisations or institutions in which they participate or under agreements to which

they are a party;

• HAVE THEREFORE AGREED on the following provisions for the reconstitution of the Organisation for

European Economic Co-operation as the Organisation for Economic Co-operation and Development:

The Articles of the Convention

Article 1 - The aims of the Organisation -

• To promote policies designed:

(a) to achieve the highest sustainable economic growth and employment

and a rising standard of living in Member countries, while maintaining

financial stability, and thus to contribute to the development of the world

economy;

(b) to contribute to sound economic expansion in Member as well as non-

member countries in the process of economic development; and

(c) to contribute to the expansion of world trade on a multilateral, non-

discriminatory basis in accordance with international obligations

Article 2 - The undertakings of the Members -

• In the pursuit of these aims, the Members agree that they will, both individually and jointly:

(a) promote the efficient use of their economic resources;

(b) in the scientific and technological field, promote the development of their resources, encourage research and promote vocational training;

(c) pursue policies designed to achieve economic growth and internal and external financial stability and to avoid developments which might endanger their economies or those of other countries;

(d) pursue their efforts to reduce or abolish obstacles to the exchange of goods and services and current payments and maintain and extend the liberalisation of capital movements; and

(e) contribute to the economic development of both Member and non-member countries in the process of economic development by appropriate means and, in particular, by the flow of capital to those countries, having regard to the importance to their economies of receiving technical assistance and of securing expanding export markets

Article 5 and 6 - Powers of the Organisation -

• Article 5

- the Organisation may:

(a) take decisions binding on all the Members

(b) make recommendations to Members

(c) enter into agreements with Members, non-member States and

international organisations

• Article 6

- Decisions and recommendations : taken and made by mutual agreement

of all the Members

- One vote for Each Member

- The requirements of the constitutional procedures of Members

Article 7-11 - Construction of the internal system -

• Council (Article 7)

• Chairman and Vice-chairman of the Council (Article 8)

• Executive Committee and subsidiary bodies (Article 9)

• Secretary-General and Deputy Secretaries-General or Assistant Secretaries-General (Article 10)

• Other staffs (Article 11)

Article 12 - External Relations -

• External Relations of the Organisation

- With Non-members in the International Society (Non-member states or other institutions)

• Upon such terms and conditions as the Council may determine, the Organisation may:

(a) address communications to non-member States or organisations;

(b) establish and maintain relations with non-member States or organisations; and

(c) invite non-member Governments or organisations to participate in activities of the Organisation

Article 13-15 - Procedural and other Provisions -

• Acceptance and Ratification by the signatories (Article 14)

• Relations and Treatment (with and of) the former institution (Article 13 and 15)

- The Organisation for European Economic Co-operation

• Termination of the application of the law (Article 17)

• The Headquarters of the Organisation (Article 18)

- Paris

• The legal capacity and the privileges, exemptions, and immunities of the Organisation (Article 19)

- And the officials or representatives

• Financial Regulations (Article 20)

• Notifications (Article 21)

DAC in the OECD

The executive committee on the ODA works of the OECD

DAC

• Development Assistance Committee

- The group in the OECD for the world’s main donors

- The inside institution for the ODA works in the OECD system

• Defining and monitoring global standards in key areas of the ODA

• A unique forum for sharing views and exchanging lessons

- Based on neutrality and high-quality work

• Increasingly,

- Addressing the challenging issues

- Such as climate change, conflict and fragility, and fair trade

The Works of DAC

• Together with the Development Cooperation Directorate(DCD) in the OECD

• Developing ‘better policies for better lives’ providing

- Transparent data on development finance, and improved development cooperation practices and policies

- Evidence-based policy advice and open forums to share and build knowledge

• Works

- To build wide-ranging partnerships

- To provide innovative and integrated approaches to range of development challenges

- In international development commitments or purposes, such as the MDGs and the Paris Declaration on Aid Effectiveness

The law for the DAC

• DAC Mandate 2011-2015 [C(2010)123 & CORR1] and [C/M(2010)18]

- Resolution : Approved by the Council

- 14 October 2010

• The function of the law

- Renew the power of the committee to 2015

- Providing the direction of the works and the relation with the OECD system

- Fundamental rules for the ODA works of the DAC

Preamble 1 - Backgrounds of the law 1 -

• The Council,

- Committed to supporting developing countries in their efforts to improve the lives

of their peoples in a sustainable manner, including by attaining the Millennium

Development Goals;

- Recognising that members of the DAC continue their common efforts to increase

resources for development and to improve their effectiveness;

- Convinced of the need to align development co-operation to the specific context

and challenges of each developing country and region;

- Aware that poorer countries are constrained in their engagement with the global

economy and are at risk of increasing marginalisation;

- Aware that the policy choices of OECD countries and emerging economies as well

as policy challenges relating to global public goods affect development results;

Preamble 2 - Backgrounds of the law 2 -

• The Council,

- Recognising the need for the DAC to work with other policy communities and

development stakeholders beyond its membership with a view to enhancing

development results;

- Convinced that sustainable and broad-based development of developing

countries—including fragile and conflict affected states—is essential for global

stability and inclusive growth;

- Recognising that, while developing countries’ ability to mobilise domestic resources

as well as to access private and public finance extended on commercial terms

should be supported given the contributions they make to economic

development, many developing countries will continue to require official

development assistance (ODA), at least throughout the period of this mandate;

Preamble 3 - Related rules -

• Having regard to

- The Convention on the Organisation for Economic Co-operation and Development of 14 December 1960

- The Rules of Procedure of the Organisation

- The Paragraph 14 of the Report by the Preparatory Committee establishing the mandate of the Development Assistance Committee (DAC) [CM(60)2(Final)]

- The Council Decision regarding a Sunset Clause for all Committees [C/M(2004)5, Item 75] entered into force on 22 April 2004 [C/M(2004)10, Item 143, IV, c)]

- The recommendations of the In-depth Evaluation of the DAC [C(2007)99 & CORR2 and C/M(2007)17, Item 226 c)]

- The proposed revision of the mandate of the Development Assistance Committee [C(2010)123 & CORR1]

Decisions on the works of DAC 1

• Objectives and functions (the Committee shall;)

a) monitor, assess, report, and promote the provision of resources

b) review development co-operation policies and practices

c) provide analysis, guidance and good practice

d) analyse and help shape the rapidly evolving global development

architecture

e) promote perspectives on global public goods and policy

coherence

f) engage or invite non-Member countries, international

organisations, private sector organisations, and civil society

representatives

Decisions on the works of DAC 2

• Special Delegated Power

- Added to the normal Objectives and functions

“The Committee shall continue

- to make recommendations to Members of the Committee, as well

as to the Council, within its competence on matters related to

development.”

• The mandate of the Development Assistance Committee

- Shall remain in force until 31 December 2015

The development and ODA issues in the OECD/DAC

The development and ODA issues in the OECD/DAC

• Environment and development

• Aid effectiveness

• Evaluation of development programmes

• Conflict and fragility

• Governance and development

• Gender equality and women's empowerment

• Poverty reduction

• Aid for trade

The development and ODA issues in the OECD/DAC 1

• Environment and development

- Capacity development for environment

- Climate change and development

- Green growth and development

- Strategic environmental assessment

• Aid effectiveness

- The implementation of the principles outlined in the Paris Declaration and Accra Agenda for Action

• Evaluation of development programmes

- To make development programmes more effective and strengthen accountability by supporting independent evaluation

The development and ODA issues in the OECD/DAC 2

• Conflict and fragility

- To improve International Engagement in Fragile States

• Governance and development

- Fighting corruption for development

- Human rights and Health

- Taxation and accountability

• Gender equality and women's empowerment

- The DAC Network on Gender Equality (GENDERNET): the only international forum where experts from development cooperation agencies for the issue

The development issues in the OECD/DAC 3

• Poverty reduction

- To promote economic growth that benefits poor people, focusing on both the pace and pattern of growth

- Promoting ’Pro-poor growth’ : a pace and pattern of economic growth that helps poor people to participate/making basis for the economic development

- Developing capacities of the participants

• Aid for trade

- The opportunities of international trade

- Promoting effective aid for trade

- The global monitoring process set up by the WTO/OECD

Korea in the OECD system

Korea in the OECD

• Membership (1996) with many activities in the organisation

- A member of the discussion forum to share national experience, identify best practices and find solutions to common problems

• A Regional Centre for Competition in Seoul (2004)

- In cooperation with the Korea Fair Trade Commission and the OECD

- For the works on competition in the Asian region

: Helping the authorities concerned to develop and implement effective competition law and policy

• The OECD Green Growth Strategy Synthesis Report (2011)

- For the practical framework for governments to boost economic growth and protect the environment

- The contribution of Korea

: to improve the report sharing the Korea's experiences through Korea's Green Growth policies

As a member of the DAC

• Accession to the DAC (2010)

- Participation in the global discussions on the issues

• The “Seoul Development Consensus for Shared Growth” and “Multi-Year Action Plan on Development” (2010)

- During the G20 Seoul Summit in Korea

: The G20 development agenda : tailored for developing countries in key areas toward sustainable and inclusive economic growth

- Co-Chairs of the G20 Development Working Group (2011)

: In implementing the G20 development agenda at the Cannes Summit

• The Fourth High Level Forum on Aid Effectiveness(HLF-4) in Korea (2011)

- An opportunity for the international community to forge a new and inclusive global development partnership

- For more results-oriented and partner country-driven development cooperation

Thanks