Question

• What values does the Organisation for Economic Co-operation and Development (OECD) promote and expect their member nations to uphold? Which country most recently became a member? Previously, what might have prevented this country from becoming a member?
• Research summaries of facts about different countries on The World Bank's website. What are Chile's current strengths and weaknesses? What has the World Bank done to help Chile in recent years?

Answer 1

The Organisation for Economic Co-operation and Development (OECD) as the name suggests, promotes the economic and social well being of its member countries and also expects them to make economic reforms while providing aid to other developing non-member countries of the world too. It is an association of 37 member countries who represent 80% of the world trade and investments. Its headquarters is in France. The member countries must uphold some values to be a part of this organisation like : -

i) corruption free social, political and economic environment

ii) having a system of corporate governance which follows certain rules and regulations to provides equal rights among all the companies for their success in the long-run

iii) the country must adhere to environment protection guidelines such as regulating greenhouse gas(GHG) emmissions

Columbia has recently joined in as a 37th member nation of OECD. It was invited to join in 2018 only but as it lacked on the above values like corruption free environment, corporate governance and environment protection reforms, it was prevented from joining in.

Inorder to meet out the OECD guidelines it did all the reforms in the last two years to be a member as soon as possible. It cleared out its labour issues, brought a reform for quick justice, state owned companies were corporately goverened, checked the trade and commerce bills and eradicated the bribary system, it improved its education and health system as well, also worked on waste and industrial chemical management for cleaner environment.

Chile's strengths comprises of its ability to make out reforms in the feild of trade and commerce. Its rich mineral reserves and resources are a great pillar in its economic growth.

While its weaknesses are :- poverty, inequality, lack of education and skilled labour, research & development (R&D) and innovation in business sector, lack of public-private partnership, etc,.

The World Bank helped Chili in its education system which provided improvisation in quality and standards in higher eduaction so as to get a skilled workforce within the country.

It carried out tax-reforms inorder to curb income inquality, worked on social and family welfare programs for protection and growth of poor and middle class.

It also made reforms and innovations in the policy making of public works, urban mobility, transportation, sustainable and efficient natural resource management. Developed strategies to control climatic, forestry and water resources from being polluted.

It provided funds and worked for the betterment of the system of health and safety of the country.