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Mobilizing domestic resources for sustainable development: Toward a progressive fiscal contract

Domestic resource mobilization (DRM) will be crucial not only to meet the sheer scale of investment needed to implement the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), but also because it holds its own broader promise for transformative change. If undertaken successfully, DRM can generate substantial benefits for state-citizen relations, economic stability and growth, and redistribution. Coalitions for progressive reforms, through which the rich pay relatively more than the poor, are a precondition for creating transformative eco-social and fiscal contracts. This is easier in contexts with greater state capacity, where resource bargains are more transparent and inclusive, and where national bargains are supported by global bargains, the latter providing resources and regulation.

Related Subject(s): Economic and Social Development
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