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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Taxation is key to promoting sustainable growth and poverty reduction. It provides developing countries with a stable and predictable fiscal environment to promote growth and to finance their development needs. Combined with economic growth, it reduces long-term reliance on aid. Its key role in mobilising domestic resources was re-affirmed at the Seoul G20 Summit. It is closely linked to other areas of economic governance covered in this report: tax havens and lack of transparency in reporting of profits and tax payments paid in resource-rich developing countries are linked to corruption, financial crime, money laundering, and illicit financial flows. These issues are in turn linked to illicit trade in arms, conflict and fragility. Taxation also plays a key role in ensuring good governance by promoting the accountability of government to citizens.

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