Accelerating financing for development: international taxation and investment

Private investment (INV) and tax revenues (TAX) are central pillars for the financing of the 2030 Agenda, together with official development assistance (ODA). Traditionally, states have negotiated international policies and frameworks in these two fields out of a national and economic perspective. In today’s context of internationally recognized global challenges and with the existence of a universal/transformational agenda for sustainable development, questions regarding the coherence and complementarity of these frameworks and their propensity to incentivize public and private agents to maximize their contribution to sustainable development objectives remain to be answered. 

Currently, the international policy dialogues aiming at bridging sector-specificity tend to be limited and fragmented. This is particularly true for the OECD, a multilateral organization of prime reference when it comes to INV, TAX and ODA.

• Evidence on the potential of articulated INV and TAX policies/frameworks regarding their contribution to (the financing of) sustainable development is generated and consolidated
• INV+TAX policy options for the financing of sustainable development are advocated for and shape the course of the international policy dialogue in relevant forums, at the OECD in particular
• The policy dialogue in relevant spaces is broadened and more inclusive, contributing to greater policy coherence for sustainable development

Expected results:  

• Creation of evidence on the articulation of INV/TAX
• Development of a shared understanding of the articulation and potential in terms of financing for development
• targeted dissemination of analysis
• translation of the analysis into policy options
• policy options discussed in relevant fora and multi-stakeholder dialogues
• contribution of new stakeholders in the discussion

Results from previous phases:   The SDC’s support to the generation of evidence for international investment treaty reform and for innovative national investment policy options has contributed to broaden the acceptance and uptake of a development angle in the investment community, at the OECD in particular.