OECD Development Co-operation Working Papers

OECD Development Co-operation Working Papers cover work on understanding aid flows, strengthening aid delivery and improving development policy. Topics include, among others, aid statistics and architecture, aid effectiveness, capacity development, development co-operation systems and management, evaluation of development programmes, as well as the relationship between development and trade, conflict and fragility, environment, gender equality, governance and poverty reduction.


Transition Finance Challenges for Commodity-based Least Developed Countries

The example of Zambia

The Zambia country pilot study was conducted by the OECD Development Assistance Committee (DAC) to explore the challenges of transition finance for a commodity-based Least Developed Country (LDC). In particular, debt sustainability concerns are viewed within the context of the shifting financing for sustainable development landscape of Zambia following its re-classification to Lower Middle Income Category (LMIC).

In line with the Addis Ababa Action Agenda (AAAA), the pilot study proposes a new “ABC” approach targeted to assess all available sources of financing (official development finance, private investment, domestic resources, and remittances), identify emerging SDG financing gaps and promote better alignment of resources with national financing for sustainable development strategies.


Keywords: Transition finance, financing for sustainable development, debt sustainability, commodity exporter, LDC, SDGs, Addis Ababa Action Agenda, Zambia
JEL: O2: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy; H6: Public Economics / National Budget, Deficit, and Debt; H2: Public Economics / Taxation, Subsidies, and Revenue; F35: International Economics / International Finance / Foreign Aid; O1: Economic Development, Innovation, Technological Change, and Growth / Economic Development; A: General Economics and Teaching; F34: International Economics / International Finance / International Lending and Debt Problems; H00: Public Economics / General / Public Economics: General
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