Reform and Modernization of the OECD

Working Paper #42

May 25, 2009

Since the early 1990s, the Organisation for Economic Co-operation and Development (OECD) has undergone a series of reforms. It undertook structural reforms, including consolidating organizational structures, introducing “clusters” to address cross-cutting issues, and reviewing its committees. It introduced management system reforms, including a results-based budgeting process. It pursued governance reforms to improve decision making and deal with the issue of enlarging its membership. It undertook reforms for enhancing relations with non-members. It also introduced financial reforms to redistribute the burden among members and place the organization on a sound footing. Some of these reforms were more successful than others, but the experience offers several insights for those leading reforms in other multilateral organizations. The reforms have given the organization greater value to its stakeholders and greater relevance to the world. While its journey towards being a more global player is not yet complete, the organization’s record of implementing a series of successful reforms suggests it can continue to reform in the years ahead.

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