7-8 JUNE 2017 / Tour & Taxis / Brussels

Means of Implementation

The EU played a leading role in shaping the Addis Ababa Action Agenda, which puts good governance at the core of sustainable development and emphasises responsibilities for all, the primacy of domestic action, the importance of good policies, the role of the private sector and a commitment to policy coherence. The Agenda reflects the consensus that the world has moved beyond the model of the donor-recipient relationship to an approach based on the mobilisation and effective use of financial and non-financial means from all sources.

Domestic resource mobilisation, the generation of government revenue from domestic resources, creates additional space for sustainable budget expenditures, fosters ownership and reduces dependency on aid. It is central for sustainable growth, poverty reduction, and the provision of public goods needed to achieve the development goals. Strengthening tax systems contributes not only to raising more predictable revenue, but also to good governance and the accountability of governments to their taxpayers.

But national and international public funds are far from sufficient to cover all needs. Countries need to attract additional private finance to help to drive economic growth as a basis for poverty reduction. The transition to a green economy poses great challenges which cannot be met solely through public resources and traditional forms of development assistance. One solution is to strategically combine EU grants with public and private financing. This blending helps unlock investments, leverages additional resources for development objectives and increases the impact of EU aid.

The EU is committed to strengthening the effectiveness of development co-operation to produce maximum impact for development. Inclusive partnerships bringing together governments, bilateral and multilateral organisations, civil society and representatives from parliaments and the private sector are essential. The principles of ownership, results, inclusiveness, and transparency and accountability should be implemented by all stakeholders.