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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Supporting countries in growing their tax base

Countries’ capacity to raise sufficient revenue of their own is critical for sustainable development. Yet developing countries face many hurdles in increasing their tax‑to‑GDP ratios. This chapter illustrates how development co-operation offers large, but largely untapped, potential for supporting tax system reform. A range of well‑designed and co-ordinated development co-operation approaches, from budget support to technical assistance, have had positive results, including in the most challenging of contexts, such as Afghanistan. Technical assistance is becoming more innovative, as the Tax Inspectors Without Borders initiative, currently being piloted by the OECD shows. International co-operation is also key in ensuring that developing countries do not lose much-needed revenue to emerging global challenges, such as the taxation of multinational enterprises.This chapter also includes an opinion piece by Ngozi Okonjo-Iweala, Nigeria’s Co‑ordinating Minister for the Economy and Minister of Finance, on the importance of realising the potential of taxation.

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