GS Paper: 3
Topic Covered: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Ukraine war could cut 1% off global growth: OECD
The Organisation for Economic Co-operation and Development (OECD) recently reported that the Russian invasion of Ukraine could reduce the global growth rate by a percentage this year and increase inflation by two-and-a-half percentage points.
What were the other important observations made by OECD?
- War’s impact on European Union could be high because of its high dependence on Russia’s energy imports
- OECD countries through increased government spending by 0.5% could lessen the impact of inflation on these countries
- Organisation for European Economic Co-operation (OEEC) was founded in 1948 to help administer the Marshall Plan
- In 1961, the OEEC was reformed into the Organisation for Economic Co-operation and Development by the Convention on the Organisation for Economic Co-operation and Development and membership was extended to non-European states
- Headquarter — Paris, France
- It works through consensus to develop policy recommendations and other “soft law” instruments to encourage policy reform in member countries
- Currently, it has 38 members
- India is not a member but a key partner
- It is a forum of countries describing themselves as committed to democracy and the market economy
- Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries
- It provides a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members.
Resources — funded by contributions from member states at varying rates
- OECD Council — provide direction and guidance to the work of the Organisation. Each member country is represented.
- OECD Substantive Committees — oversee all the work on each theme (publications, task forces, conferences, and so on)
- OECD Secretariat — led by the Secretary-General provides support to Standing and Substantive Committees
Special bodies and entities associated with OECD
- International Transport Forum (ITF) (formally known as the European Conference of Ministers of Transport)
- International Energy Agency
- Nuclear Energy Agency
- Partnership for Democratic Governance (PDG)
- Trade Union Advisory Committee (TUAC)
- Prelims link
- About OECD
- What is inflation?
- Mains link
How does the Russia-Ukraine conflict impact the global economy and also the Indian economy? Discuss. (15M)