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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Macro-economic policy

If any demonstration were ever needed of the reality of globalisation, and the interconnectedness of developed and developing countries, the economic crisis has provided it. Closer economic integration through international trade and investment brings benefits to developing and developed countries alike. But it also means that shocks hitting developed countries will have significant repercussions on developing countries – and vice versa. As OECD countries went into recession in 2008-2009, following the failure of some financial institutions and the collapse of confidence in financial markets, growth rates in developing countries fell also.

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