Better Policies for Development 2014

Policy Coherence and Illicit Financial Flows

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This edition of Better Policies for Development focuses on illicit financial flows and their detrimental effects on development and growth. Every year, huge sums of money are transferred out of developing countries illegally. The numbers are disputed, but illicit financial flows are often cited as outstripping official development aid and inward investment. These flows strip resources from developing countries that could be used to finance much-needed public services, such as health care and education.

This report defines policy coherence for development as a global tool for creating enabling environments for development in a post-2015 context. It shows that coherent policies in OECD countries in areas such as tax evasion, anti-bribery and money laundering can contribute to reducing illicit financial flows from developing countries. It also provides an update on OECD efforts to develop a monitoring matrix for policy coherence for development, based upon existing OECD indicators of ‘policy effort’. The report also includes contributions from member states. Most illustrate national processes to deal with policy coherence for development beyond 2015.



Why focus on policy coherence for development in the post-2015 agenda?

The post-2015 development agenda entails working towards a single framework and set of goals that are universal in nature and applicable to all countries. The new framework will need to integrate the economic, social and environmental dimensions of sustainable development in a coherent and balanced manner. Setting and implementing the post-2015 framework will require co-ordination and convergence between the major agendas, such as the Millenium Development Goals, the Rio+20 Sustainable Development Goals, the post-2015 agenda, the Global Partnership for Effective Development Co-operation, the G20 and the G8. This chapter suggests that policy coherence for development should be an integral part of the new framework and identifies five different levels at which PCD could contribute to the post-2015 development agenda.


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