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Development Co-operation Report 2024

Tackling Poverty and Inequalities through the Green Transition

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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.

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Poverty and inequalities focus of official development assistance and its measurement

To what extent does development finance, specifically official development assistance (ODA), target the reduction of poverty and inequalities? After analysing the results from existing measures of aid targeting, this chapter shares findings from innovative approaches to provide a more complete view of the current state of targeting for poverty and inequalities across bilateral and multilateral providers, relevant sectors and geographies. It provides new evidence on ODA allocations relative to where the poorest and most vulnerable people are living. The chapter concludes with suggestions for development co-operation providers to reinvigorate the fight against poverty and inequalities in the context of the green transition agenda by improving resource allocations, targeting and measurement.

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