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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Private investment, both domestic and foreign, is key to promoting the economic growth and employment which are essential to reducing poverty. Foreign Direct Investment (FDI) is a major source of finance and an important channel for the transfer of skills and technology. It can, on the other hand, also have undesirable effects, such as when foreign investors do not follow international standards for responsible business conduct. Sources of FDI are becoming increasingly diverse. The emerging economies in the G20 accounted for only 1% of G20 international investment in 2000. By 2010 this figure had risen to 20%.

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