Inputs to the Outcome Document

This policy brief describes the evolving landscape of the global aid architecture and the critical role of multilateral banks, like IDA, in promoting a more equitable and more effective distribution of resources. It analyzes the need for a rebalancing in the allocation of aid to ensure greater effectiveness and impact. The brief highlights the importance of better funding MDBs, strengthening country ownership, improved collaboration among donors, transparency, and accountability in achieving sustainable development goals.

This joint Brief by IMF, OECD and WBG emphasizes the critical role of Domestic Revenue Mobilization (DRM) in addressing the financing gap for the Sustainable Development Goals (SDGs) in low-income countries. It highlights the need for comprehensive tax reforms, enhanced compliance, and international cooperation to increase tax revenues. The brief advocates for utilizing the upcoming FFD4 conference to strengthen tax capacity and align policies with sustainable development objectives.

The global financial system faces critical challenges, particularly for developing countries, including debt crises and financing gaps. Intensified South-South and Triangular Cooperation (SSTrC) can offer innovative policy solutions. Recommendations include scaling up debt management strategies, upscaling innovative solutions, strengthening regional development banks, and creating regional infrastructure bonds to pool risks and lower borrowing costs. Expanding contingency financing mechanisms and establishing data-sharing platforms are essential for financial stability. FFD4 presents a key opportunity to advance these SSTrC-driven initiatives for sustainable development.