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Better Policies for Development

Recommendations for Policy Coherence

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This report examines the ways in which wider policies can be use to support our common development objectives. It focuses on areas requiring collective action by the entire international community, and complements the OECD’s continuing work on aid effectiveness and monitoring aid flows.

It starts from two premises. First, policies ranging from trade and investment to tax and fiscal transparency, corporate governance, climate change, resource security and social policy have a profound impact on the prospects for achieving sustainable development. Second, whilst these require action by national governments and regional organisations in both developed and developing countries, in today’s interconnected world they also require collective action by the entire international community.

The report covers 18 development policy topics divided into four broad categories: sustainable economic growth, economic governance, the environment and natural resource security, and society. Together these reflect the OECD’s mission to promote better policies for better lives.

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Energy security

We live in a world of growing energy demand and interdependence. Energy security is central for sustainable economic growth and poverty reduction. It is also inextricably linked to other global challenges: energy systems are the major contributors to climate change, representing around 60% of total current greenhouse gas emissions. But despite rising global energy use, many developing countries lack access to adequate, affordable and reliable energy supplies, severely constraining growth, productivity, and employment. Many poor households still have no access to modern energy services. The IEA World Energy Outlook 2010 (IEA/WEO, 2010) estimates that 1.4 billion people around the world still lack access to electricity, projected to fall only marginally to 1.2 billion by 2030. Some 2.7 billion rely on the traditional use of biomass, with a projected increase to 2.8 billion in 2030.

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