Article
A French strategy on cooperation around domestic resource mobilization in developing economies
In 2020, the financing needs of developing economies, particularly those most affected by global warming and the COVID-19 public health crisis, have never been higher. As such, the capacity of States to generate and collect their own revenues has become a major challenge for developing countries.
With a view to supporting the efforts of tax and customs administrations in developing countries, the French Ministry for Europe and Foreign Affairs and Ministry of the Economy and Finance have produced a strategic guidance document. This strategy sets down the priorities of French cooperation policy to support better domestic resource mobilization in developing countries.
The Interministerial Strategy 2020 – Support for improved domestic resource mobilization in developing economies was officially adopted by the Interministerial International Cooperation and Development Committee (CICID) on 8 February 2018 and focuses on three objectives:
- Creation of more efficient tax policies;
- Modernization of tax administrations in partner countries;
- Optimization of cooperation instruments.
In order to ensure the success of the strategy’s implementation, a technical roadmap has also been produced, a strategic investment plan for development endowed with a four-year budget of more than €60 million for the 2020-2023 period.
Together, the strategy and investment plan aim to create a virtuous circle so as to strengthen internal taxation in the beneficiary countries of official development assistance. The strengthening of these countries’ financial resilience is key to ensuring the sustainability of their public policies and to achieving the Sustainable Development Goals (SDGs) set down in the UN 2030 Agenda for Sustainable Development.
+ Read the interministerial strategy 2020 "Support for improved domestic resource mobilization in developing economies" (EN) >>
On February, 8 2018 the Interministerial International Cooperation and Development Committee (CICID) requested the elaboration of the strategy recorded in this document to improve targeting of aid along the sectoral and geographical priorities decided at the political level. This is also intended to ensure improved coordination between technical instruments and shareholders. It was carried out in collaboration with the French Treasury, whose role in implementing this interministerial strategy will be clarified in the forthcoming release of an accompanying investment plan.