The Organization for Economic Cooperation and Development, international organization of 30 countries that accept the principles of representative democracy and free-market economy, has initiated a number of principles and recommendations intended to help policymakers make regulation stronger.
Commenting on this Angel Gurría, Secretary General of OECD, said in a statement that in order to thwart a return of the financial meltdown, markets cannot hinge on incremental, piecemeal reform. What are the principles and recommendations then?
The OECD principles include:
* Better transparency, with regulatory authorities being handed legal powers to collect and disseminate comprehensive, up-to-date and internationally comparable data.
* Stronger surveillance and analysis of the financial system, including closer government cooperation.
* Greater accountability of governments, with regulators and other authorities publishing annual reports detailing how they identify and address risks in the system.
On the word of Timothy Bishop, finance and insurance specialist with the OECD, the organization is hoping that legislators, policymakers and supervisory authorities will make use of the framework to make sure that financial regulation keeps pace with the rapid evolution and globalization of the financial system.
The Organization for Economic Co-operation and Development (OECD), as already said, is an international organization of 30 countries that accept the principles of representative democracy and free-market economy. It is to be noted that the majority of OECD members are high-income economies with a high Human Development Index (HDI) and are regarded as developed countries.
OECD had its commencement in 1948 as the Organization for European Economic Co-operation (OEEC), led by Robert Marjolin of France, to help administer the Marshall Plan for the reconstruction of Europe after World War II. Late on, its membership was extended to non-European states. In 1961, it was reformed into the Organization for Economic Co-operation and Development by the Convention on the Organization for Economic Co-operation and Development.
