Strengthening and catalysing domestic revenue collection in developing countries is seen as a key role for aid. Indeed, domestic resource mobilisation has its own discussion session at the Global Partnership meeting in Mexico this April. But in 2011, just 0.07% of official development assistance (ODA) went to domestic resource mobilisation-specific projects (‘core’ domestic resource mobilisation aid). Moreover, this type of aid is very difficult to track, raising questions about how any efforts to increase aid aimed at domestic resource mobilisation would be monitored and coordinated.
We define domestic resource mobilisation as mobilising public resources in developing countries, primarily through tax. Donor countries give aid to support this through various measures. In our latest research, we estimate how much aid goes to domestic resource mobilisation, who gives it and where it goes (read our full briefing).
The research finds that US$ 105 million was provided for core domestic resource mobilisation aid in 2011, while a further US$ 579 million went to projects for which it was an identifiable component. This is in the context of $161 billion of ODA given by all donors globally; core domestic resource mobilisation accounted for 0.07% of total ODA.
Aid for mobilising domestic resources will become an increasingly important area of international cooperation. The challenges with tracking and measuring it, as well as the importance of coordination, underline the importance of transparency. Open, timely and accessible data on aid activities will be an essential component of effectively scaling up and monitoring this form of assistance.
Source: Development Initiatives’ analysis of project-level data from the OECD DAC Creditor Reporting System. See our briefing for details.
Notes: ODA = official development assistance; core domestic resource mobilisation = projects explicitly targeting; wider domestic resource mobilisation = as an identifiable component of a broader programme
Authors: Tim Strawson and Guto Ifan