Organization for European Economic Cooperation

The tenth annual economic review of the Organization for European Economic Cooperation (OEEC) appeared in February 1959 under the title Policies for Sound Economic Growth. Its major conclusions were as follows: 1) policy must generally be focused on the stimulation of an adequate rate of economic growth; 2) the measures adopted must not lead to a rate of growth of demand which might give rise to inflation and balance-of-payments disequilibrium, and which could not therefore be sustained; 3) in view of the large increase in productive capacity in recent years, there was scope for a greater emphasis on increasing consumption; 4) there was need for a stimulus to revive international trade, if possible through a more economic pattern of trade and use of investment resources; 5) member countries should act in concert and coordinate their national policies; 6) the countries in a stronger economic position had the major responsibility for ensuring a renewal of growth, although those still subject to inflationary pressures must continue to apply restraining measures; 7) special consideration must be given to the difficulties of those countries and regions in Europe which were in the course of development and relied heavily on agricultural exports; 8) there must be a stabilization policy appropriate to a phase of renewed expansion; 9) excessive over-all demand should be avoided, as well as cost inflation; and 10) improvements in short-term economic indicators needed to be promoted.