Public sector mobilization efforts affect both the prospect for further economic growth and the scope for general and targeted programmes for the poor. They involve raising the saving rate and ensuring that the available resources are used efficiently and ultimately benefit the poor.
Developing countries face an urgent need to mobilize domestic resources because of declines in financial inflows, which have resulted from a number of factors, including high indebtedness and slow growth in official development assistance. There is a pressing need for investment, particularly in the agricultural sector and other sectors directly related to the livelihood of the poor. The gap between the investment required to attain the objectives of poverty reduction and its alleviation and the domestic savings available in many developing countries underscore the role of domestic resource mobilization, which calls for policies and actions concerning both the public and private sectors.