- OECD controversy
Some decisions, actions or reports made at or by the
Organisation for Economic Co-operation and Development (OECD) have raised controversy.OECD and soft law
Unlike other inter-governmental organizations like the United Nations or the European Commission, the OECD cannot edict laws and doesn't have the power to coerce a country, member or not, to alter its policy.
However, it can have an influence on national policies through
soft laws , by issuing "recommendations", "guidelines" and other "manuals", that countries or companies can refer to. Some of these guidelines have become "de facto" standards, such as the OECD Guidelines for the Testing of Chemicals or the OECD Model Tax Convention.Also, negociations and agreements between representatives of member countries can happen at the OECD, and have direct consequences in national laws.
Finally, the OECD publishes reports and statistics that may present countries in a questionable position.
OECD and taxation
Tax havens
The OECD and its
Financial Action Task Force regularly publish the list of uncooperativetax havens .The effect of the FATF Blacklist has been significant, and arguably has proven more important in international efforts against money laundering than has the FATF Recommendations. While, under
international law , the FATF Blacklist carries with it no formal sanction, in reality, a jurisdiction placed on the FATF Blacklist often finds itself under intense financial pressure. As a result of the FATF 40+8 Recommendations (among other initiatives), most countries now require their banks to report certain suspicious financial activities to the appropriate financial regulators and law enforcement authorities. (In the United States, these are calledSuspicious Activity Report s or S.A.R.'s.) Most larger countries with significant financial centers consider transactions coming from or transferring to a jurisdiction on the FATF Blacklist to be a suspicious activity, which automatically triggers closer regulatory scrutiny (and considerably more paperwork on the bank's part). Because of this, many major financial institutions will not conduct business with counterparts based in NCCTs. Since many of the countries that FATF originally listed as NCCTs have major financial industries (i.e., the Bahamas, Cayman Islands, Liechtenstein), such "de facto"boycott s could have a significant effect on a country's economy (or at least a politically powerful sector of the economy).Pro-tax lobbying
Some observers, such as the FreedomWorks foundation, argue that the OECD is lobbying for more taxes. In book series such as their Economic Survey of countries, OECD analyst advise countries on their policies including tax. Such groups also remark that the OECD is funded by tax money.
Multi-lateral Agreement on Investment
The
Multi-lateral Agreement on Investment was negociated at the OECD between 1995 and 1998. While this discussion was not secret, it had low public awareness until a draft report was leaked in 1997. This had led to massive outcry and an intensive campaign against it. Eventually, countries gave in and cancelled the agreement.Broadband statistics
The OECD periodically publishes indicators on internet connections known as the OECD Broadband Statistics. The USA often have a disappointing rankings in the most prominent indicators, which is why several USA-based organizations, such as the Information Technology and Innovation Foundation, questions the relevance of the OECD data and proposes its own alternative composite indicators.
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