In order to coordinate the so-called Marshall Plan, or US financial aid to the Old Continent devastated by the Second World War, the European Economic Cooperation Organization was established. The Marshall Plan ended, but working together continued, and in the early 1960s the institution in question transformed into the Organization for Economic Development and Cooperation, better known by its English abbreviation OECD.
The goal is to coordinate and help countries develop policy solutions for growth based on democratic and market economy principles.
Calling for an international seal of quality for the country, Latvia also made joining this institution, which is often called the club of developed countries, one of its foreign policy priorities. In 2016, it happened. It is not a free pleasure, the membership fee is between two and three million euros every year.
The Secretary General of the OECD expressed that, taking into account the upheavals caused by Covid-19 and the war, the importance of the organization has only increased in recent years.
The OECD admits in its report that even before Russia’s full-scale invasion of Ukraine, Latvia’s approach to the average welfare level of the organization’s countries had slowed down.
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Among the many detailed recommendations, including reforming the tax system, for example by relieving the burden on lower-income citizens and thus reducing the shadow economy. It is also said that the state administration should be strengthened, investment attraction and access to financing should be promoted, also by developing the capital market, and much more.
Most of the recommendations are repeated and discussed year after year and come from different organizations. The representatives of the government admit that nothing new has been learned, but nevertheless the membership of the OECD in recent years has been worth it and the work is ongoing.
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