Development Co-operation Report 2024
Tackling Poverty and Inequalities through the Green Transition
Faced with multiple priorities, including the imperative of accelerating the global green transition, development co-operation providers are at risk of losing sight of a silent, yet devastating crisis that has been unfolding even before the COVID-19 pandemic: the alarming increase of poverty and inequalities in low and middle-income countries. And yet, not only are ending poverty and reducing inequalities at the core of their mandates, both are also essential to meeting their broader ambitions in terms of sustainable development worldwide. What opportunities – and risks – is the climate priority posing for the fight against poverty and inequality? Can just, green transitions reinvigorate development agendas? How can international development co-operation policy and finance help? Bringing together the latest evidence, data and insights from governments, academia, international organisations and civil society, the OECD Development Co-operation Report 2024 provides policy makers with concrete ways of delivering on their commitments to improve the lives of billions while fostering green, just transitions around the world.
Policy coherence and responsible business conduct
The annual investment gap across the Sustainable Development Goals has almost doubled since 2015. The green transition and the fight against poverty require a significant additional investment to achieve these goals. This chapter highlights the importance of private investment and foreign direct investment, in particular, to help developing countries raise incomes through quality jobs and increase environmental sustainability by enhancing innovation and access to green technologies. It argues that more coherence between development policy and measures aiming to create an enabling environment for sustainable business and to promote responsible business conduct (RBC) are needed to maximise the positive spillover effects of cross-border business activity and to prevent unintended side effects.
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