Accelerating financing for development: international taxation and investment


The realization of the 2030 Agenda requires an unprecedented mobilization of public and private funds. Through targeted engagements with well-known think tanks, this intervention will support the creation of evidence on the combined potential of international investment and taxation policies as accelerators for the financing of sustainable development. Translated into policy options, this evidence is expected to contribute to the shaping of policy discussions in relevant international fora, notably at the OECD, and inform Swiss positions.

Country/region Topic Period Budget
Global
Governance
Public sector policy
Public finance management
Domestic revenue mobilisation
01.08.2019 - 31.12.2023
CHF 1'600'000
Background

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.

Objectives To inform international dialogues and shape policy options by supporting new knowledge on the combined potential of international investment and taxation frameworks as accelerators for the financing of sustainable development.
Target groups Policy makers, government representatives, mainly at international level.
Medium-term outcomes
  • 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
Results

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.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Foreign academic and research organisation
Other International Organization
  • Organisation for Economic Cooperation and Development
  • Other Academic Research North


Other partners
CDE, UN agencies, GIZ, Open Society Foundation
Coordination with other projects and actors SECO (AFIN/WE) and other Federal Offices (SIF); SDC Decentralization, Democratization and Local Governance Network
Budget Current phase Swiss budget CHF   1'600'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   1'600'000 Total project since first phase Budget inclusive project partner CHF  1'600'000
Project phases Phase 1 01.08.2019 - 31.12.2023   (Current phase)