Cooperation with the OECD on Economic Policy Frameworks for Sustainable Development
Governments in particular of developing countries must mobilise more and better private investment to finance and implement national policies in line with the 2030 Agenda for Sustainable Development. The OECD, as a key institution in which global public policies related to investment and tax are discussed, is undertaking significant analytical work and advisory activity to support member and partner countries in attracting quality investment and enhancing domestic revenues.
Domestic revenue mobilisation
- Organisation for Economic Cooperation and Development
Sector according to the OECD Developement Assistance Commitiee categorisation GOVERNMENT AND CIVIL SOCIETY
Sub-Sector according to the OECD Developement Assistance Commitiee categorisationDomestic revenue mobilisation
Aid Type Project and programme contribution
|Background||The realization of the Sustainable Development Goals (SDGs) calls for an unprecedented mobilization of public and private funds, well beyond the delivery of official development assistance. During the current multiple crises involving rising energy prices, high inflation, public debt and climate change, governments must mobilise more private investment to finance sound national policies. Developing countries need to consider whether domestic tax measures intended to attract and keep foreign investment remain effective, and whether tax revenues are being unnecessarily foregone as a result.|
|Objectives||Foreign direct investment and international taxation policy frameworks are conducive to the realisation and financing of the Sustainable Development Goals.|
|Target groups||Policy makers and government representatives in OECD member and partner countries (e.g. Bangladesh, Rwanda, Tunisia and Zambia).|
- Updated, improved and expanded monitoring and analysis on the impacts of FDI on sustainable development in a wide range of countries;
- Updated and further developed the OECD Investment Tax Incentives database as a basis to provide policy directions;
- Tool or checklist regarding investment tax incentive regimes created for officials and law-making bodies in developing countries, based on selected pilot country studies;
- Increased know-how and skills of officials and law-making bodies in developing countries through targeted capacity building and peer learning.
- Country-specific OECD FDI Investment Policy Reviews or stand-alone FDI Qualities Reviews, including related capacity building and policy dialogue activities;
- Third FDI Qualities Indicators report with updated and improved indicators; peer discussion of draft indicators report;
- Policy papers in view of reviewing, improving and possibly expanding FDI Qualities Policy Toolkit, incl. related peer discussions;
- Strengthened collaboration with DCD/DAC, int. organisations and public/private development cooperation actors;
- Targeted outreach activities within international policy fora;
- Country-level and regional capacity building activities to increase know-how and skills of officials and law-making bodies;
- OECD Investment Tax Incentives database updated and further developed;
- Pilot country studies conducted and assisting tool/checklist for officials and law-making bodies in developing countries available.
Results from previous phases: SDC, well coordinated with SECO, has been co- initiating and financially supporting new work of the OECD Secretariat aimed at assisting governments of both OECD members and developing countries in identifying and conducting policy and institutional reforms to attract sustainable foreign direct investment (FDI). For this purpose, a FDI Policy Toolkit for policymakers was developed and the OECD Council adopted a Recommendation to endorse it and encourage its application. A newly created Investment Tax Incentives Database improves transparency by presenting tax incentive policies in developing and emerging economies. The work conducted so far has strengthened coordination and coherence between the OECD investment, fiscal affairs and development cooperation committees. It has also stimulated useful debates within Switzerland to strengthen domestic policy coherence.
|Directorate/federal office responsible||
Other International Organization
OECD Directorate of Financial and Enterprise Affairs / Investment Division
|Coordination with other projects and actors||
SECO and other Federal Offices (SIF, ESTV)
IISD/IGF (SDC-supported project "The future of resource taxation")
Integrated Embassies or Cooperation Offices in SDC partner countries
|Budget||Current phase Swiss budget CHF 1’300’000 Swiss disbursement to date CHF 280’000|