Ohlin Report
Encyclopedia
The Ohlin Report was a report drafted by a group of experts of the International Labour Organization
led by Bertil Ohlin
in 1956. Together with the Spaak Report
it provided the basis for the Treaty of Rome
on the common market in 1957 and the creation of the European Economic Community
in 1958.
s between countries reflect economic productivity and, thereby, offset the advantages of lower wages in other States. As a consequence, States with a higher levels of social
protection and higher wages should not fear competition from low cost countries. This explains the fact that the Articles 117 and 118 of the European Economic Community
treaty are soft in nature, while in contrast the hard Articles 119 and 120 of the EEC treaty have a limited scope.
International Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...
led by Bertil Ohlin
Bertil Ohlin
Bertil Gotthard Ohlin was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People's Party, a social-liberal party which at the time was the largest party in opposition to the governing Social...
in 1956. Together with the Spaak Report
Spaak Report
The Spaak report or Brussels Report on the General Common Market, was the report drafted by the Spaak Committee in 1956. The Intergovernmental Committee, headed by Paul-Henri Spaak presented its definitive report on 21 April 1956 to the six Governments of the Member States of the European Coal and...
it provided the basis for the Treaty of Rome
Treaty of Rome
The Treaty of Rome, officially the Treaty establishing the European Economic Community, was an international agreement that led to the founding of the European Economic Community on 1 January 1958. It was signed on 25 March 1957 by Belgium, France, Italy, Luxembourg, the Netherlands and West Germany...
on the common market in 1957 and the creation of the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
in 1958.
Summary
The key element of the Olin Report was that the Common Market did not presuppose a harmonised level of labour standards. The report explained that exchange rateExchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
s between countries reflect economic productivity and, thereby, offset the advantages of lower wages in other States. As a consequence, States with a higher levels of social
Social
The term social refers to a characteristic of living organisms...
protection and higher wages should not fear competition from low cost countries. This explains the fact that the Articles 117 and 118 of the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
treaty are soft in nature, while in contrast the hard Articles 119 and 120 of the EEC treaty have a limited scope.