Back in May, Brazil formally requested membership in the Organization for Economic Co-operation and Development (OECD). The current political uncertainty, however, could be a deal-breaker. Nevertheless, the ‘Club of the Rich’ will debate Brazil’s request on Wednesday.
Still battling its worst recession in history, Brazil wants to send a positive message to investors. While previous administrations have focused on relations with developing nations, Michel Temer’s government wants to strengthen ties with the U.S. and Europe.
Effects of being an OECD member
The Paris-based think tank is a forum of countries describing themselves as committed to democracy and the market economy. Most of its 35 members are wealthy nations.
If the OECD approves the request, Brazil would become the largest emerging economy in the group, and the third Latin American nation admitted to the group. Mexico and Chile are already members. And Colombia has been in membership talks since 2013.
Brazil would have a platform to discuss its own public policies. That could influence the likelihood of other countries and investors doing business here. It would also reinforce the idea that Brazil is recovering from the recession.
That marks an inflection of Brazil’s diplomatic action: instead of being the richest of the poor, we would be the poorest of the rich.