The Organization for Economic Cooperation and Development (OECD) is an international organization of developed countries (with high-income economies) that accept the principles of representation democracy and a free market. It originated in 1948 as the Organization for European Economic Cooperation (OEEC), with the humanitarian intention to carry out the Marshall Plan for the reconstruction of Europe after WWII. While the underlining Geo-strategic goal was to stop the spread of Marxism and shape European policy. The only countries that would receive part of the economic aid from the United States were those prepared to line up with the US against the Soviet Union.
SILVERWARS PODCAST:
In conjunction with the arrangements set up at Bretton Woods in 1944, Marshall Aid was used systematically to pressure governments and voters in countries like Britain, France and Italy into rejecting Communism in exchange for Aid, while Keynesian economic policies were used to provide welfare and jobs for workers. Using institutions such as the OEEC, the US provided "friendly" governments in Europe with $17 billion in investment between 1948-1952 and succeeded in stimulating the reconstruction of capitalism, while bringing them heavily into US debt.
By 1960, the organization reformed as the Organization of Economic Cooperation and Development to better reflect its new boarder scope as a global think-tank. Its membership now comprises of non-European economies.
Today, the OECD Secretariat in Paris provides a setting for governments to compare policy experiences, seek answers to common problems, and identify good practice and coordinate domestic and international policies. Members and key partners of the organization currently represent 80% of world trade. Over 70 nonmembers economies currently participate as regular observers or full participants in OECD committees, and the OECD conducts policy dialogues and capacity building activities with nonmembers to share best policy practices.
The OECD today exists as a forum where peer pressure can act as a powerful incentive to improve policy and implement “soft-law”—nonbinding instruments that can occasionally lead to binding treaties. The Secretariat collects data, monitors trends and analyses, and forecasts economic, developments. It also researches social changes or evolving patterns in trade, environment, agriculture, technology, taxation, and other areas. The OECD is also a premium statistical agency, because it publishes highly comparable statistics on a wide range of subjects.
(Article Continues Below)
In the last five years, the OECD has engaged in guidance efforts promoting responsible sourcing of minerals. This guidance aims to help companies respect human rights and avoid contributing to conflicts through their mineral or metal purchasing decisions. It has hosted an annual forum on responsible mineral supply chains, which has been a platform for dialogue among government representatives, industry, and civil society to rally against the challenges and offer solutions related to responsible sourcing. Recent forums have tackled topics like combatting corruption, engaging with mining communities, environmental degradation, and the role of minerals in the energy transition.
The OECD has also put forth guidelines for multinational enterprises with specific recommendations for the responsible business conduct in the mining sector. These guidelines have been instrumental in shaping corporate policies regarding resources. The OECD has worked to ensure that these guidelines are implemented, including through National Contact Points for handling disputes related to non-observance of these guidelines.
The OECD continues to analyze and report on trade in raw materials, including minerals and metals. This includes policy recommendations to address export restrictions and promote sustainable economic growth from mineral resources. The organization has highlighted the need for regulatory stability, transparency, and the potential of creating economic clusters around mining activities.
The OECD has emphasized the environmental and social impacts of mining through various reports and handbooks. An example would be their “OECD Minerals Handbook” that provides guidance on applying OECD due diligence instruments to address environmental risks and impacts in mineral supply chains.
Although Silver has been discussed in and around solar PV demand, OECD has not specifically addressed the silver supply crisis. They warn that due to the need for quadruple the resources, the future may be fraught with conflict, corruption, human rights and environmental damage or worse harming societies and imperiling the energy transition in the process.
A policy paper published in 2023, shares OECD concerns that the evidence suggests that export restrictions may be playing a non-trivial role in international markets for critical raw materials, affecting availability and prices of these materials. OECD countries have been increasingly exposed to the use of export restrictions for critical raw materials.
These export restrictions include silver for countries like China, Russia, Kazakhstan, India and Indonesia. Although subtly by different means, they all regulate the export of silver or generally precious metals and require those exporting seek prior approval or a license. As the world divides itself, and new economic factions like BRICS recruit more countries away from the US Dollar hegemony, its likely we will see increased export restrictions placed on silver and other critical materials.
Unless specific actions are undertaken to confront the silver supply deficit with real solutions, its likely all warning from OECD could occur to the [always neglected] silver supply chains.
(Sources Below)
Sources:
