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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The growing development potential of other official flows

The development finance landscape has changed dramatically over the past two decades, with the relative importance of official development assistance (ODA) declining in comparison to other external finance available to many developing countries. Since 2008, other official flows (beyond ODA) – provided at close to market terms and/or with a commercial motive – from public bodies in OECD Development Assistance Committee member countries and multilateral institutions have made up, on average, one-third of all official flows to developing countries. This chapter outlines recent trends in these other official flows, their development potential and impact. International financial institutions are the largest providers of non-concessional development finance, representing almost two-thirds of their operations in 2012; more than 95% went to middle-income countries. Officially supported export credits, although commercially motivated, can also help finance large projects in developing countries. These flows deserve greater consideration in developing countries’ search for external financial resources.

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