Abstract

There has been a renewed call within the international community for industrial countries to meet the goal of devoting 0.7 percent of their GNP for official development assistance (ODA). Originally proposed by the Pearson Commission in 1968, only a few countries are currently meeting this target and the average ODA level is only a third of the target. Raising ODA to 0.7 percent of industrial country GNP is an important element in the strategy for reducing global poverty and meeting the Millennium Development Goals (MDGs) by 2015. It could also lead to an expanded supply of needed global public goods.

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The Role of Fiscal Policy
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