In today’s interdependent world economy, domestic and foreign policies – such as trade, investment, agriculture and fisheries, taxation, security, innovation, migration, climate and environment –  can stimulate or hinder growth and development in developing countries and impact on poverty reduction. A donor country’s aid to boost a developing country’s ability to engage in trade makes no sense if the donor then blocks imports from that country through trade barriers or trade distorting subsidies. 

 In this context, development co-operation efforts need to be supported by mutually reinforcing policies across a wide range of economic, social and environmental issues to ensure greater results and impact. This entails a comprehensive approach to development and enhanced policy coherence for development (PCD).

At the OECD 50th Anniversary Ministerial Council Meeting, OECD Ministers endorsed a Framework that outlines a broader Strategy on Development for the Organisation. This will imply a comprehensive approach to development across the OECD; increased collaboration and knowledge sharing; and enhanced partnerships with developing countries and other regional and international organisations as well as key stakeholders.

A key component of this new development strategy is policy coherence for development and the OECD will deepen its work to enhance PCD at three complementary levels:

• OECD members, by developing evidence-based analyses on the costs of incoherent policies as well as on the benefits of more coherent policies;

• OECD, by assessing and monitoring the impact of its work on development, ensuring that its policy advice is coherent and consistent with development objectives;

• Partner countries, by supporting them in identifying more holistic policy options for their own development, including the complementarity between domestic policy frameworks with increased international trade.

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