The Organisation for Economic Co-operation and Development (OECD) has issued new guidance urging development partners to place poverty reduction and inequality at the centre of development co-operation, amid slowing global progress, overlapping crises and shrinking development budgets.
Although extreme poverty has declined significantly over recent decades, progress remains uneven, while persistent inequalities continue to limit access to resources, rights and opportunities. The OECD emphasises that poverty and inequality are closely interconnected and that addressing them together is essential to achieving inclusive, resilient and sustainable development.
The guidance sets out four key pillars for action.
First, it calls for poverty and inequality reduction to be embedded in strategic planning and programme design, supported by human rights-based approaches and evidence-informed analysis.
Second, it urges development partners to mobilise and allocate financial resources more effectively, strengthen progressive domestic tax systems and encourage private investment that generates decent jobs and accessible services.
Third, the OECD highlights the importance of more equitable partnerships, including stronger country ownership, locally led development initiatives and meaningful participation by civil society and people experiencing poverty and inequality.
Fourth, it calls for improved data collection, monitoring, evaluation and institutional capacity to strengthen accountability, support evidence-based decision-making and measure results.
Particular attention is needed in least developed countries and fragile contexts, where extreme poverty and inequality are increasingly concentrated. The OECD also stresses the importance of addressing structural barriers and power imbalances to ensure that marginalised groups are not left behind.
The guidance provides development co-operation providers with practical approaches to improve the effectiveness and impact of their interventions. Its central message is that tackling poverty and inequality simultaneously is not only a matter of global solidarity but also a strategic investment in more equitable, peaceful and prosperous societies.
OECD Guidance on Reducing Poverty and Inequalities through Development Co‑operation