The OECD: what is it and what does it do?
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THE Paris-based Organisation for Economic Co-Operation and Development is one of the world's great economic forecasting organisations.
Based in a chateau in Paris, the OECD's grandly named secretariat and 2,500 "agents" gather and sift through figures on everything from trade to corruption.
In a world where statistics can be twisted to suit almost anybody's purposes, the OECD's figures are usually regarded as the gold standard.
The same cannot always be said for the advice that comes pouring out of Paris on a regular basis. The organisation consults widely with officials, academics, unions and business before issuing lengthy reports, which usually reflect the incumbent government's beliefs mixed in with a few mild criticisms.
The OECD is funded by the 30 member governments, which dilutes the independence of its reports. But it does mean that we are reading a sort of "Lenihan Unplugged" and can be pretty sure that it paints a pretty good picture of what the Finance Minister would really like to do if he did not have to worry about pesky voters and Fianna Fail backbenchers.
In fact, the minister was so comfortable with the contents of yesterday's report that he was happy to host the OECD in his own department's press room and sat comfortably next to OECD secretary general Angel Gurria as the Mexican called for cuts in social welfare, health, the civil service and the minimum wage, along with new property taxes.
While there is nothing unusual about the fact that the OECD issued a 132-page report on Ireland, it was rare for the OECD's busy secretary general to attend and speak at the launch. Mr Gurria is a man with a lot on his plate right now, but then it is not every day that one of the OECD's star students crashes and burns, earning stern rebukes from all his teachers.
The fact that the report was finished before next month's budget was also probably more than mere happy coincidence for the minister.
While the report is far more readable than many of the turgid reports issued by organisations such as the International Monetary Fund or the World Bank, it is to these two Washington-based organisations that readers will have to turn if they truly want an independent and global view of the Irish economy.
- Thomas Molloy
Irish Independent
