Effective Trade Policies for Developing Nations

In Economics you learn that there are many trade policies aimed to ease trade between nations. Unfortunately, many of the trade agreements discussed in the classroom are the policies that help sustained, developed countries. What about the trade policies for developing nations? These policies are perhaps more important to focus on if we want to grow as a nation. I recently came across an organization called the, Organization for Economic Cooperation & Development (OECD). This group provides a forum in which governments from around the world can work together to promote policies that improve the economic conditions of developing nations. This organization was established in 1961 and consists of 34 members. The OECD is funded by the member countries; the United States is the biggest contributor, providing 22% of the funds, followed by Japan. —Most importantly, the OECD examines core issues that directly affect developing countries. For example, how to improve schooling and pension systems for their citizens. 

The effect the OECD has had on developing nations over the years have been astonishing. In September of 2010 Israel became the 33rd member of the OECD. Upon joining the members of the OECD collectively agreed Israel needed help in four key areas; education, investment, trade, and public governance. Immediately the organization become implementing policies and procedures to fix these areas. By 2012 all-in taxes on the average worker decreased from 29% to 20.2% of labor costs, employment rates have increased substantially for women, and life expectancy reached 81.7 years (almost two years more than the 79.8 average in 2008). Israel has also begun to see increases in technological advances, which has help tremendously in the fields of science and health. 

The OECD is a proven effective organization that aids developing nations. The policies they create and implement into developing countries act as precedent for future emerging economies to follow. The OECD and trade policies like it are import to understand and research. We cannot grow as a nation, without the help of other countries. These developing countries could on day bring valuable recourses and new technologies to the U.S., which would not have been possible if organizations like the OECD did not exist.