Focus: GS-III Indian Economy, Prelims
Why in news?
Global agency OECD on 2nd March, 2020, lowered its India’s GDP growth forecast to 5.1 per cent from the earlier projection of 6.2 per cent for 2020 on concerns of impact of deadly coronavirus on the domestic as well as the global economy.
Details of the report:
- The Organisation for Economic Cooperation and Development (OECD) said the adverse impact on confidence, financial markets, travel sector and disruption to supply chains contributes to the downward revisions in all G20 economies in 2020, particularly ones strongly interconnected to China.
- The report said coronavirus (COVID-19) outbreak has already brought considerable human suffering and major economic disruption.
- Output contractions in China are being felt around the world, reflecting the key and rising role China has in global supply chains, travel and commodity markets. Subsequent outbreaks in other economies are having similar effects, albeit on a smaller scale.
- The Organisation for Economic Co-operation and Development (OECD) is an international, intergovernmental economic organization of 36 countries. OECD was founded in the year 1961 to stimulate world trade and economic progress.
- Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries. OECD members are democratic countries that support free-market economies.
- It provides a platform for its member countries to compare policy experiences, seek answers to common problems, identify and share best practices and coordinate domestic and international policies of its member nations.
Functions of OECD
- The OECD is responsible for publishing economic reports, statistical databases, analyses, and forecasts on the outlook for economic growth worldwide.
- The group analyzes the impact of social issues on economic growth and makes recommendations to foster economic growth globally. These recommendations extend forethoughts to the environmental concerns associated with economic development too.
- The organization endeavors to eliminate bribery and other forms of financial crimes worldwide.
- The OECD also maintains a “blacklist” of nations that are considered uncooperative tax havens.
- It also took efforts to eradicate tax avoidance by profitable corporations and in the G-20 countries. It also encourages the G-20 countries to promote tax reforms.