Slovenia and the OECD

The OECD (Organisation for Economic Co-operation and Development) groups 30 member countries which are also known as a "think tank" or "the club of the rich". This is a group of countries creating more than four-fifths of the world’s production using less than one-fifth of the world’s population. The Organisation was established in 1960 as a successor to the Organisation for European Economic Cooperation (OEEC) established in 1948. The Convention on the establishment of the Organisation defines the purpose of the Organisation as the expansion of policies to facilitate the greatest possible economic growth, employment and to raise the standard of living in the member countries. The Organisation also strives toward the economic development of non-member countries and toward accelerating global trade at the multinational level and in a non-discriminatory manner.

OECD membership is one of the major goals of Slovenian foreign policy. The Ministry of Foreign Affairs is aware of the advantages of membership of this prestigious organisation and is actively striving to attain it as soon as possible.

DEVELOPMENT OF RELATIONS BETWEEN SLOVENIA AND THE OECD

The former Yugoslavia had observer status in the OECD from 1961. Following its dissolution, however, this status was annulled. By a decision of the OECD, none of the new states which emerged from within the territory of the former SFRY have succeeded in attaining the observer status held by the former SFRY.

In 1990, the OECD established the Centre for Co-operation with the Economies in Transition. The Centre initiated the following programmes of cooperation with countries in transition: general programme (for all Central and Eastern European countries), PIT - "Partners in Transition" - Programme for all Visegrad countries.

Slovenia has participated in the general programme since its independence, as it was not yet an internationally recognised independent state at the time of the formulation of the PIT Programme. Slovenia applied for admission to the PIT Programme in 1994. However, due to financial restrictions and reorganisation of the Programme at that time, the OECD did not wish to extend it to new countries. The PIT Programme serves as preparation for full membership of the Organisation. Romania and Bulgaria also applied for admission to the PIT Programme shortly after Slovenia. The OECD therefore prepared special cooperation programmes for the three countries that had expressed interest in participation but had not been included in the PIT Programme. The Czech Republic, Hungary and Poland became OECD members in 1995 and 1996. The Slovak Republic (the last country to enter the PIT Programme) became a member in 2000.

Slovenia applied for OECD membership on 14 March 1996, at the same time, it signed the Administrative Framework Agreement. The aim of this agreement is to strengthen and improve cooperation on the institutional level. The Agreement does not, however, contain any clauses on future membership.

COOPERATION BETWEEN SLOVENIA AND THE OECD

During the past years, OECD member countries have dealt primarily with the necessary reorganisation measures, leaving aside the issue of future enlargement. Therefore, Slovenia's strategy in regard to the OECD is aimed at strengthening expert cooperation with OECD working bodies and at acquiring diplomatic support. In 2000, the Governmental Working Group for Co-operation of the Republic of Slovenia with the OECD was established, headed by the State Secretary at the Ministry of Foreign Affairs. The main task of the working group composed of representatives of ministries and government services is to encourage, direct, organise and analyse activities between Slovenia and the OECD.

At the time of the functioning of the working group, cooperation with the Organisation was enhanced considerably. Experts are delegated from 11 ministries and government services as permanent representatives to different OECD committees and working groups. Today, Slovenia is observer, participant and full participant in 24 OECD working bodies and is one of its most active non-member countries. Review of cooperation in OECD working bodies and the list of permanent representatives of the Republic of Slovenia.

OECD REFORM AND ENLARGEMENT

In 2003, a working group was established within the OECD in order to draw up a strategy enabling the Organisation to adjust to the enlargement process in a strategically selective and innovative manner and open up to non-members in a new global context. This strategy was based on the fact that the Organisation had to be reformed from the inside first, i.e. with an examination of the scope of its functioning and methods of decision-making and financing processes; only then would it be possible to discuss further enlargement. A working group headed by Japan's Ambassador to the OECD Seiichiro Noboru presented its recommendations on reforms and enlargement at the OECD Ministerial Council Meeting on 13 and 14 May 2004, thus concluding its work. The recommendations of the working group met with favourable response in the Ministerial Council, which adopted an agreement on operationalisation of the proposed guidelines and on the drafting of a list of countries suitable as potential candidates for membership.

In the strategy presented by the working group, the OECD is defined as an organisation whose mandate is to work toward and achieve permanent economic growth and employment in the OECD member countries, steady economic development in non-member countries and to expand world trade. The working group proposed further enlargement of the OECD, which would strengthen the identity, competencies and the global influence of the Organisation. In admitting new members, it is necessary to be innovative and selective in terms of strategy. The enlargement is scheduled for the middle-term period, with the total number of new member countries not exceeding 10. However, selecting the appropriate countries is more important than talking of the number of new member countries.

Individual countries are to be classified into five groups according to the type and form of cooperation with the OECD: (1) the first group is composed of the current OECD member countries, (2) the second group comprises countries for which the OECD will draft the Programme for Partners with Accession Perspective (these countries are to become full members following a period of preparation), (3) the third group consists of big countries and countries significant for the OECD, which do not fulfil the basic criteria for membership (For these countries, the OECD will draw up special programmes for cooperation), (4) the fourth group consists of countries which did not qualify for the second group, but are willing and able to cooperate in the formulation and implementation of the OECD rules (within the scope of observer status) and (5) the fifth group is composed of all remaining countries. The report thus proposes cooperation also with those non-member countries which are not and will not soon be on their way to OECD accession.

Noboru's working group proposes that the selection of candidate countries for integration into the accession process be based on four criteria: "like-mindedness", "significant player", "mutual benefit" and "global considerations".

ASSESSMENT OF SLOVENIA'S STATUS

Noboru's recommendations to the OECD Council are favourable for Slovenia, since they clearly express intent on the part of the Organisation toward future enlargement after several years of uncertainty. Nor does Slovenia have any reservations regarding other reports on the reform of the Organisation, which were submitted to the OECD Ministerial Council by the working group (the method of financing, scope of work etc.).

The drafting of the Programme for Partners with Accession Perspective stands for a decisively expressed intention of the Organisation to enlarge with a certain number of countries in the medium-term period. It is clear, however, that none of the countries expressing an interest in membership fulfil each of the criteria outlined in the report.

The Ministry of Foreign Affairs estimates that Slovenia fulfils the criteria "like-mindedness" and "mutual benefit"; however, its positioning according to the criteria "significant player" and "global considerations" is unclear. Nor do any of the remaining 15 countries expressing the wish to become OECD members fulfil every criterion outlined in the report. The cooperation with the OECD to date and the support of a large number of OECD member countries show that Slovenia has a good chance of being classified with the group of countries for which the Programme for Partners with Accession Perspective will be formulated. Possible domination of separate criteria (e.g. "significant player") might effect a change in the classification of countries. The selection of countries included in the group of candidates will undoubtedly be subject to political assessment.

In pursuing the goal of OECD membership, Slovenia will continue its present strategy of active expert cooperation, and lobbying at the highest political level will continue.