Relevance, renewal, and realism. These are the reference points that can best guide our efforts in charting the future of the Organization for Economic Co-operation and Development [OECD]. The challenges and opportunities of the 21st century are upon us.

As politicians, we face complex issues and we need to make informed policy choices. To remain relevant to our political needs, the OECD's agenda must be at the cutting edge of new issues. Its analytical work must provide us with sound and useful guidance. And its deliberations must serve to strengthen our shared efforts for greater growth and the improved well-being of our citizens. Institutional renewal is essential to maintaining this relevance. Realism must temper our efforts at renewal, a realism based on budgetary necessities and on existing strengths.

What do we value in the organization?

Excellence has been a hallmark of the OECD. Secretary General Paye leaves us a rich legacy in terms of high-quality work and professionalism. But we must not take it for granted. We invite our new colleagues from the Czech Republic and Hungary to join us in building upon this standard of excellence. We value the high quality of the OECD's analysis, its tradition of peer review and consultation, and its consensus approach.

What are the elements of renewal?

First, the OECD must sharpen its vision. It must identify and assess the implications of emerging issues at an early stage.

One of the realities of a globalized world is that sectors or issues do not operate in isolation. Cross-sectoral analysis, such as the OECD's excellent work on employment, can make a tremendous contribution to how we address a complex set of issues. The OECD needs to place even greater emphasis on horizontal work.

Also, it strikes me that the work of the OECD would benefit from more participation or input from the private sector and other interest groups. The "futures program" offers a good model for private-sector involvement. Whether through renewal of the advisory committees or other means, we must draw the main players more actively into our analysis and deliberations.

Establishing priorities for the OECD is essential to renewal. Our broad priorities are clear. Promoting growth, employment and social progress while strengthening the multilateral system are important for the OECD, because we also have these priorities at home. What we have not agreed upon are the activities that are no longer a priority. To remain at the cutting edge, the OECD must have the flexibility to devote resources to new issues. With budgetary constraints, we need to discontinue work on yesterday's issues. This means reforming the decision-making process on priorities and budget.

We all agree that the OECD must have a "global vision." We commend the Organization's efforts to expand the dialogue with significant new players. However, outreach must be effective. The current patchwork of programs with disparate objectives represents roughly one quarter of the total budget. Can we afford to continue this way? I suspect not.

I propose that we task the Organization with developing a more coherent framework for the outreach program. The objective would be to consolidate and streamline the various programs with non-members under one umbrella. This restructuring should take place over the summer, and be incorporated in the upcoming biennial budget. We should review results at our next meeting.

The objectives of outreach should be threefold: to build linkages with other organizations and regional groupings; to improve our understanding of the interdependencies with non-members; and to share our policy analysis with non-members as a means of encouraging change. The work on trade and labour standards, carried out by the OECD in full co-operation with the International Labour Organization [ILO], should now be shared with non-members to shed light on this contentious issue and to develop greater consensus.

With the growth of technical assistance activities in other international organizations and the "graduation," and even accession to the OECD, of several Eastern European countries, the Centre for Co-operation with Economies in Transition Program should be cut back drastically. Its focus should be on policy assistance, and it should be fully integrated in a consolidated outreach program.

On membership, we need to take stock of the implications of the increase in membership on the Organization's mandate, focus and operations. This argues for a "pause" in inviting any new applicants.

I am proud to have a Canadian appointed as head of this organization. We look to Mr. Johnston to provide the vision and leadership to prepare the organization to address the challenges of the 21st century. The renewal process is a challenging one, but one that is necessary. Recent budgetary cuts, some would argue, should focus the mind and bolster resolve to implement constructive reforms and strategic cuts in the 1997/98 program. However, Mr. Johnston will require the necessary financial resources and full support of member countries to do so. As an interim measure for 1996 only, we would ask that member states maintain their contributions at the amount agreed to in the December interim budget. This will allow Mr. Johnston scope to plan for strategic cuts in the 1997/98 program. More importantly, we must all commit ourselves to support "change." A collective will is needed if we are to accomplish the goals of renewal and reform of this important organization.

Thank you.

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Last Updated: 2006-10-30	Top of Page	Important Notices