Monday, February 10, 2014



IWS Documented News Service


Institute for Workplace Studies----------------- Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor---------------------- Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau



Organisation for Economic Cooperation and Development (OECD)




[full-text, 104 pages]


Press Release 6 February 2014

Donors doing too little to strengthen domestic revenues in fragile states, OECD says


[excerpt from report]

THIS IS A CRUCIAL TIME FOR FRAGILE STATES. They are the ones furthest away from the Millennium

Development Goals. They will be home to more than half of the world’s poor after 2018. Yet the aid

they receive is shrinking, and they have limited access to alternatives for financing development such as

remittances and foreign direct investment. The domestic revenues they raise are not enough. Evidence

in this report suggests that fragile states mobilise less than 14% of their GDP in tax revenues – a level the

United Nations deems to be inadequate to achieve the Millennium Development Goals. Yet accountable

tax systems are perhaps more crucial in fragile states than anywhere else. Domestic revenues are not

only a way out of aid dependency – they are important for building mutual accountability between citizens

and states.


The 2014 Fragile States report is a wake-up call for development co-operation providers: it is time to invest

more in the capacity of fragile states to mobilise their own revenue to support statebuilding and peace.

In international fora held at Monterrey and Busan as well as at the G20 Summit in St. Petersburg, donors

affirmed that support for domestic revenue mobilisation is a priority, but this commitment has not been

translated into reality. In fact a very small sum – only 0.07% of all aid – is targeted toward building accountable

tax systems in fragile states, despite the fact that investments in this sector can yield impressive returns.

Domestic resource mobilisation is a top priority of both the Global Partnership for Effective Development

Co-operation and the New Deal for Engagement in Fragile States. We trust the evidence in this report will

assist them and many other actors to address the challenges. We are convinced that by working together

solutions can and will be found that finance development, including by drawing on the wealth in fragile

states. We hope this work can also be taken into account by Member States as the turn their attention to

the post-2015 development agenda. Fragile states and the many poor who will live within their borders

deserve no less.




This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.



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