Global Investors Consultation Centre (GICC/EA)

Global Investors Consultation Centre (GICC/EA)

Global Investors Consultation Centre (GICC/EA): Mainstreaming #Sustainable Development Goals in Ta...

Global Investors Consultation Centre (GICC/EA): Mainstreaming #Sustainable Development Goals in Ta...: Policy Forum held a breakfast meeting on 'Mainstreaming the SDGs in Tanzania' in Dar es Salaam on 29th January, 2015. Here ...

Financing for Development

In Photo: UN Resident Representative with Tanzania's leadership

  Source: UN Tanzania, 2015

Financing for Development.         

Introduction:

Country leaders globally have during this year, replaced the Millennium Development Goals (MDGs) with a new set of ambitious global 2030 Development agenda - the Sustainable Development Goals (SDGs). The new SDGs comprise of 17 objectives and 169 targets for the period 2016 - 2030 expanding the MDGs which were targeted to be achieved by 2015. The SDGs set out a clear vision on economic, social and environmental dimensions.

The financing resources needed to achieve the SDGs are however more than the current development financial flows. However, adequate financial resources can be mobilised globally in the form of (a) investable resources, largely private from developed world, (b) Domestic Public Resources, can be increased in the low income countries such as Tanzania which has a GDP of 43.6 ($ Billion)*

However, a paradigm shift on how development can be financed is needed to unlock the Public and Private resources for achieving the SDGs.

 * World Bank's Little Data Book, 2015/2016


Video on 17 SDGs:

Source www globalgoals.org (You tube)

Key Lessons of the FFD program:

A serious endeavor was made in the four weeks program to first illustrate the main types of finance – Public, Private, Domestic, and International that can be availed for development financing strategy. Secondly, why a paradigm shift is required to mobilize and leverage the resources and Thirdly, how Public and Multilateral Development Bank (MDB) funds are used to mobilize private finance. Abundant Resources were provided including Videos and Hangouts to ease self study.

During the 2nd Week, I received insights on the role and significance of Domestic Resource Mobilization (DRM) in meeting development finance needs. I could Identify the key factors that affect the quality and efficiency of public expenditures. Moreover I had achieved a better understanding on the concept of Illicit Financial Flows and their negative impact on development finance, I also acquired understanding on Official Development Assistance (ODA), what were the source of funds for ODA and its role in achieving development outcomes and insights on what is a National Development Plan.  

I could also describe how tax on and public spending strategies differ across low, middle and high-income nations. I could appreciate the significance of new developments in tax administration and public financial management. Moreover I could appreciate how ODA can be used to catalyze a country’s access to other sources of capital and the fact that despite having sufficient funds globally, why there were challenges and complexities associated with allocating and channeling resources to fulfill the SDGs.

Video on Reducing illicit funds flows

                                                                          Source: World Bank (You Tube)

Thereafter, during the 3rd Week, I looked at the role and importance of private finance and how the drivers of private finance differ from those of the public sector. I could appreciate the different sources of domestic and international private finance and how they can be mobilized. Moreover I had better insights on how Governments and the public sector can support a more favorable climate for private investment

I also had insights on project finance investment decisions, the infrastructure paradox and why investment in infrastructure is so important.

Essentially, I could appreciate how Private sector resources (e.g., FDI, philanthropy, remittances, banks) can contribute to innovation. 

                                                    Source: Kenya's President's Tweet

In picture: World Bank's Representative to Tanzania Ms. Bella Bird with our country's new President Dr. John Magufuli

During the 4th Week, I was able to Identify how the Multilateral Development Banks (MDBs) can specifically: (1) support public and private efforts to meet SDGs challenges and (2) strengthen investment climates. Moreover, I had insights on how MDBs act as bridge to leverage public funds with private capital flows. I also saw how MDBs supported Global Public Goods (GPGs) in areas like climate change. Additionally, I also viewed a case whereby MDBs have used innovative instruments to tailor solutions to overcome specific development finance problems.

Conclusion:

All in all, the entire program was very informative and eye opening. 

Its my conviction that with ODA's Funds, Domestic Revenue Mobilization, by curbing Illicit flow of funds and with various MDB's support (including IMF), Private capital will be largely mobilised to open new doors and thereby raise billions of funds into trillions. Equipped with adequate funding and the will to develop, the developing countries will be capable of fulfilling all the 17 SDGs by the year 2030 even though many developing countries including my own country couldn't fulfil the previous MDGs.

    

Source: Own camera.

Source:FB Divine Encounter