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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Tax revenues as a motor for sustainable development

Tax revenues are critical to sustainable development because they provide governments with independent revenue for investing in development, reducing poverty and delivering public services as well as increasing state capacity, accountability and responsiveness to their citizens. Yet, while OECD countries collect on average 34% of their gross domestic product as tax, developing countries achieve only half this rate. This chapter reflects on the potential within many developing countries to increase tax income and outlines the challenges to doing so, such as weak administrations, corruption, poor governance, low tax morale and poor compliance, compounded by difficulties in taxing multinational enterprises.This chapter also includes an opinion piece by Abdalla Hamdok, Deputy Executive Secretary of the United Nations Economic Commission for Africa, on how better taxation can help Africa fund its own sustainable development.

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