ABSTRACT
The COVID-19 pandemic unleashed a series of knock-on crises on the global economy. By 2022, global growth had dropped to levels not seen since the Great Financial Crisis. Developed countries looked inward to respond to the crisis, shrinking aid, and increasing domestic consumption. On the other hand, fiscal space to protect growth and provide safety nets for vulnerable populations shrank for many low and low middle income countries. This chapter discusses proposes policy changes that could deliver better, more transparent, and enforceable global governance systems for improved revenue mobilisation. It discusses the importance of global macroeconomic stability and private sector mobilisation for LMICs revenue collection. The chapter then discusses access to various sources of finance available to LMICs, including the SDRs, carbon finance, and other innovative tools. The chapter concludes by proposing suggestions for improving global and national governance to increase revenue mobilisation.
It is against this backdrop that developed and developing countries are working to raise resources to deliver prosperity, protect the planet, and ensure peace. Yet LMICs exist within a system over which they have limited influence and in which they are almost always price takers. This chapter thus proposes policy changes that could deliver better, more transparent, and enforceable global governance systems for improved revenue mobilisation. Section 12.2 discusses the importance of global macroeconomic stability for LMICs and the role of private capital. Section 12.3 proposes ways of improving country debt burdens to allow for more capital to be raised. Section 12.4 looks at access to grant financing and SDR, while Section 12.5 discusses ways of improving prudential regulation and levies on emissions and remittances as additional ways to improve resource mobilisation. Section 12.6 concludes.
