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The implications of Israel becoming a member of the OECD

Posted by: Gadi Ouzan  & Dani Rinot 

The Organization for Economic Cooperation and Development (OECD) has officially accepted Israel as a full member to its organization. 

The organization was founded in 1961 as a club of developed, democratic and liberal countries, whose representatives meet and work to coordinate their policies in the economic, social environment and financial fields. 

Israel has been trying to join the organization for the past 20 years, but although economically inferior countries have been accepted easily, Israel was not granted an opportunity to join. 

 The implications  of becoming a member of the OECD for a relatively small country like Israel are significant , therefore the Governor of the Bank of Israel, Professor Stanley  Fischer and Israel’s Finance Ministry have decided to rank the matter at top priority and enter into a special process in order to meet the tough acceptance criteria of the OECD. 

The acceptance to the OECD was made possible thanks to Israel transforming into a developed country with a free market while also strictly adhering to responsible and balanced economic policies in recent decades. These policies include reduction of Israel’s debts, maintaining fiscal and development policies, cutting taxes and enhancing capital market efficiency. 

 Israeli authorities believe that the accession to the organization highlights the satisfaction corporations have in Israel’s economy. 

There are many implications to the accession to the OECD:
As Israel is recognized as a member of the leading economies of the world, we believe that it would strengthen investors’ confidence in Israel’s economic standing, thus increasing investments into Israel. 

Additionally, the accession is expected to improve treatment on social issues such as poverty and social inequalities.   This new status serves as a reminder that these issues should be dealt with in a timely and efficient manner. 

Finally, the OECD’s approval reaffirms Israel’s status as a leading economic and technological power.

This entry was posted on Thursday, May 20th, 2010 at 6:29 am and is filed under Venture Capital Industry Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.