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.
Tax systems and their equalising potential
Low- and middle-income countries need to increase their tax revenue collection dramatically to finance progress towards the Sustainable Development Goals. This chapter discusses why equitable and sustainable tax systems, progressive tax design, implementation and monitoring should be given more attention in the broader fiscal and economic context – as essential tools for tackling poverty and inequality. It examines and shares examples of complementary fiscal measures, such as enforcement and targeted redistribution to the poorest to make fiscal systems fairer and to generate greater revenue. It notes that using tax systems to pursue environmental goals such as through domestic carbon taxes, often cited as a promising new revenue source, have limited revenue generation potential. It concludes with forward-looking suggestions to tap the full levelling potential of tax systems.
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