The increasing importance of quality development aid (UNECA)

The Addis Ababa Action Agenda (AAAA) highlights the importance of Official development assistance (ODA) for the poorest and most vulnerable countries by reiterating the fulfilment of all ODA commitments, including the commitment by many developed countries to achieve the target of 0.7 per cent of ODA/GNI and 0.15 to 0.20 per cent of ODA/GNI to least developed countries (LDCs). Commitment was also made to reverse the recent decline in ODA to LDCs and to encourage ODA of 0.2 per cent of GNI to LDCs. The agenda stresses the importance of the catalytic role of ODA to foster domestic revenue mobilization through enhancing the capacity of tax collection and administration as well as strengthening the enabling environments. The Addis Tax Initiative, which was launched at the third International Financing for Development conference in Addis Ababa in July 2015 by more than 30 countries and international organizations, also calls for substantial additional development cooperation to enhance domestic revenue mobilization, with donors commitment to collectively double their technical cooperation in the area of domestic mobilization/ taxation by 2020.