The OECD today announced that it will open accession talks with Israel. Israel is one of five countries with which accession talks will begin, along with Chile, Estonia, the Russian Federation and Slovenia. In a statement, the OECD Council said that it “invites the Secretary-General to set out the terms, conditions and process for the accession of each of these countries to the OECD for subsequent consideration and adoption by Council. Separately, Council may raise issues of a political nature which the Secretary-General will convey to the countries concerned in the context of the discussions on accession.”
Prime Minister Ehud Olmert said, “This is another vote of confidence in the Israeli economy, its strength and development capacity. The rapid expansion of the Israeli economy in recent years will receive great encouragement, and the country will now unquestionably benefit from additional investment from all over the world.”
The Prime Minister’s Office said that joining the OECD could take up to two years, and will involve legislative amendments, reforms, and adoption of the advanced OECD standards.
In March 1996, the OECD Council of Ministers approved Israel’s request to participate in the Organization’s activities. Today, Israel actively participates and fully cooperates on more than fifty committees, working groups, networks, task forces and schemes, as a full participant, regular observer and as an ad hoc observer.
The Ministry of Finance says, “Israeli membership in the OECD will be an important step in the economy’s integration into the global economy as a developed and modern economy.” The ministry cited a statement made in January by IMF Executive Director for Israel: "The economy’s high degree of development together with the authorities’ commitment to maintain a market-based economy, good governance and democratic pluralism place Israel as a natural candidate for OECD membership."
An improvement in Israel’s economic status will help cut its risk rating, lower the cost of credit, and promote the country’s integration into the global economy. Joining the OECD will also facilitate the exchange of economic information between Israel and other countries, which might promote economic reforms and bring its economic standards in line with international norms. Membership might also raise Israel’s credit rating on international markets from its current A- rating obtained in 1995.
Joining the OECD could take up to two years, during which Israel’s economy will be put under a microscope, to verify that it meets OECD standards.
Governor of the Bank of Israel Prof. Stanley Fischer said, “The OECD’s invitation reflects the strong standing of the Israeli economy, and will help Israel integrate into the global economy.”
The OECD also plans to cooperate with Brazil, China, India, Indonesia and South Africa.
Published by Globes [online], Israel business news - www.globes.co.il - on May 16, 2007
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