11 Catalytic use of aid to mobilise more funding for development

Aid cannot prevent war, conflict or migration. Aid alone cannot create growth, secure development or eradicate poverty. And aid cannot solve the huge challenges created by demographic developments in Africa.

It is essential that developing countries mobilise their own resources to support their own development. This requires the development of better tax systems and sound and transparent management of natural resources. National authorities themselves have responsibility for this, but Norway can help to strengthen national institutions through programmes such as Oil for Development and Tax for Development.

Illicit financial flows and corruption lead to the loss of vast sums of money that could have been used for development. Combating illicit financial flows and corruption will therefore continue to be high on Norway’s development policy agenda.

Aid provided through the multilateral development banks, primarily the World Bank, is catalytic by its very nature. The influence and expertise of these banks and their ability to mobilise efforts and resources put them in a good position to engage the private sector and trigger larger investments in development-related activities. Norway will therefore support capital increases of the multilateral development banks.