This year's Development Co-operation Report, titled 'Mobilizing Resources for Sustainable Development', and launched by the Chair of the OECD Development Assistance Committee (DAC) provides an overview of the sources of finance available to developing countries and proposes recommendations on how to mobilise further resources. The report is the second in a trilogy of reports (2013-2015) on ‘Global Development Co-operation Post-2015: Managing Interdependence, which are designed to prepare for 2015 and beyond.
According to the report, Official development assistance (ODA) is increasing. Nonetheless, smart strategic ODA remains critical for least developed countries (LDCs) and fragile states, which have limited capacity to access financing to fund education, health services and infrastructure, and suggests a target of directing 50 per cent of ODA to the poorest and most fragile countries. The report also highlights the role of ODA in: making investment attractive in high-risk situations; helping countries raise domestic resources; and supporting policy reform in investment and trade.
The report 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. Thus, discussed in the report are additional resources for financing the SDGs. These include south-south cooperation, particularly from Arab nations, Brazil, China, Mexico and Turkey; foundations; direct giving; and social business.
The report recommends, inter alia: developing a new metric to complement the ODA measure that reflects broader financial flows for development; increasing domestic resources, particularly tax revenue; reducing transfer costs on remittances; and decreasing losses from corruption, money laundering and tax evasion.