The IEA was founded in 1950 as a Non Governmental Organization, at the instigation of the Social Sciences Department of UNESCO. It has since its creation maintained information and consultative relations with UNESCO and is since 1973 a federated member of the International Social Science Council. Its aim from the beginning has been to promote personal contacts and mutual understanding among economists in different parts of the world through the organization of scientific meetings, through common research programs and by means of publications of an international character on problems of current importance.

The IEA is governed by a Council, composed of representatives of all Member Associations as well as a limited number of co-opted members. The Council meets triennially when it reviews the general policy of the Association and elects the President and other Officers and members of the Executive Committee for a three-year term of office.