Domestic resource mobilization: Issues at stake

Low levels of domestic resource mobilization are believed to be caused by low levels of income, demographic factors and the structure of financial markets, which are generally difficult to influence in the short to medium term. It has often been assumed, therefore, that it is unrealistic to expect a large and sustained increase in domestic resource mobilization in Africa. As a result, increasing domestic resource mobilization has been described as the “hard option” for closing Africa’s resource gap (Aryeetey, 2004). Discussions on how to fill the resource gap have consequently tended to focus heavily on the increase of external flows such as ODA and FDI, as well as on debt reduction.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities

Partnerships for the Goals