In the realm of sustainable development, the finance landscape has become increasingly intricate and multifaceted. Alongside traditional official development assistance (ODA), it now encompasses a wide array of public resources, private investment, portfolio flows, grants, remittances, and innovative public-private partnerships. The Organisation for Economic Co-operation and Development (OECD) consistently releases data and analysis on its platform to aid in the monitoring of these diverse financial flows.
Under its mandate to oversee and promote financing for sustainable development from various public and private sources, the OECD engages in comprehensive data collection and reporting. By analyzing these flows, policies, and statistical measurement frameworks, the Organisation provides valuable insights to governments and private actors. Subsequently, the OECD can recommend more effective and sound approaches to sustainable development financing.
One of the primary messages conveyed by the OECD is the increasing importance of utilizing public resources to steer private investment towards sustainable development initiatives in low- and middle-income countries. This has become a significant priority for both the countries receiving the funding and those providing it. The OECD aims to encourage development partners to enhance their methods of operation by setting standards, documenting and sharing best practices, and attracting private investment into countries and sectors most in need, including through blended finance.
In light of the dual challenge of investing in long-term, sustainable development and effectively addressing global crises, there is a pressing need for a more transparent, accountable, and coherent development finance architecture. The OECD contributes to this discourse by monitoring the financing and governance of the multilateral system, as well as exploring ways to mobilise all available resources for sustainable investments in regions and communities most in need.
The OECD has developed a Transition Finance Toolkit to assist donors in adapting their support and improving transparency and coordination as low- and middle-income countries progress in their sustainable development journey. Additionally, the role of philanthropy in sustainable development has become increasingly significant, with philanthropic funding for development on the rise, serving as a catalyst for change in the international development system.
However, despite the growing importance of philanthropic flows, they still remain modest in comparison to funding from governments and other donors. The OECD has spearheaded the creation of the Total Official Support for Sustainable Development (TOSSD) standard to provide a comprehensive measurement of the resources driving sustainable development in low- and middle-income countries, encompassing not only official and private resources but also contributions to global public goods.
In conclusion, the work of the OECD has been instrumental in providing invaluable data and analysis on global philanthropy for development. By collaborating with existing research centres and projects, expanding its database, and offering research and analysis on global trends and impact, the OECD Centre on Philanthropy is contributing significantly to the advancement of the 2030 Agenda. To learn more about the diverse and complex landscape of development finance, we encourage you to explore the rich resources offered by the OECD.