Development Co-operation Report 2014

Mobilising Resources for Sustainable Development

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The Development Co-operation Report (DCR) is a yearly report by the Chair of the Development Assistance Committee (DAC) that addresses important challenges for the international development community and provides practical guidance and recommendations on how to tackle them. Moreover, it reports the profiles and performance of DAC development co-operation providers and presents DAC statistics on official development assistance (ODA) and private resource flows.

The Development Co-operation Report 2014: Mobilising resources for sustainable development is the second in a trilogy (2013-15) focusing on “Global Development Co-operation Post-2015: Managing Interdependence”. The report provides an overview of the sources of finance available to developing countries and proposes recommendations on how to mobilise further resources. It also explores how to mobilise resources to finance the provision of global public goods: for example, to combat climate change, promote peace and security, and create a fair and equal trading system.

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Backing recovery in fragile states

By 2018, most of the world’s poor will be living in fragile states – countries marked by conflict, instability and poor governance. These developing countries find it much harder than others to access resources to finance their development. Official development assistance (ODA) to fragile states is declining, foreign investment is volatile and reluctant because of the associated risks, and remittances sent home by migrants – though offering potential for development – are not always used to finance public goods. This chapter asks how the urgent tasks of recovery and development in fragile states can be financed. It highlights the need to focus more on domestic revenue generation – revenue raised within the country – as a source of social spending, and also as a cornerstone of statebuilding. While the focus on domestic revenue is not new in the development community, much more and better support will be needed in order to deliver on its promises.

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