While some progress was made in the latest round of United Nations' climate change negotiations in Durban, South Africa, there was little progress on either carbon pricing or financing for action against climate change.
There are limits to how much a government can receive as grants from donors or borrow. So raising tax revenues is a necessary element for governments to spend on providing more of these essential services and, in turn, reduce poverty.
With only five years to go until the deadline for the Millennium Development Goals (MDGs), the poverty reduction agenda has been set back. All is not lost, however. Reducing poverty on a massive scale is doable.