Governing Economic globalization: The pioneering experience of the OECD

The Organization for Economic Co-operation and Development (OECD) has pioneered global governance in three areas of vital importance to international commerce: competition, foreign direct investment, and tax policy. The results have varied sharply; most national policy change has resulted from policy diffusion in which the OECD role was supportive but not critical. Greater consistency among states in competition policy has been thwarted by differing objectives, legal systems, administration, and penalties. The Multilateral Agreement on Investment (MAI) failed mainly because the problems it addressed lacked urgency. This contrasts sharply with some OECD tax activity that has focussed on urgent needs for greater international policy congruence.