Development Co-operation Report 2014

Mobilising Resources for Sustainable Development

image of Development Co-operation Report 2014

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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Creating an environment for investment and sustainable development

The increasing share of global foreign direct investment to developing countries is not evenly spread, with Africa receiving the lowest portion despite its plentiful investment opportunities. This chapter explores the obstacles to investment in developing countries and analyses the ingredients of a conducive investment climate. These include creating regulatory and legal capacity for managing investment inflows, promoting and facilitating investment, attracting private investment in infrastructure, strengthening the links between investment and trade, and promoting responsible business conduct by multinational enterprises. However, attracting investment is not the end of the story: sustainable development depends as much on the quality of investment as on the quantity. Policy makers in host countries must therefore harness investment inflows so they generate maximum development benefits through employment, technology transfer, competitiveness and growth of domestic enterprises and industries.This chapter also includes an opinion piece by Justin Yifu Lin, Honorary Dean at the National School of Development, Peking University, and former Chief Economist of the World Bank, on how any developing country can undergo dynamic structural transformation.

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