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| 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:
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.
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
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.
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.
I would appreciate to receive your comments that will motivate me to publish more posts in the future
ReplyDeleteGood morning. I discovered your post through the "Developing Innovative Ideas for New Companies" Facebook page. I would be interested to learn more about the program you referred to in your blog post. We have started a new company based in Toronto Canada called Terrapin Social Finance - visit us a t terrapinsf.ca - our purpose is to serve as intermediary between developmental lenders and sources of capital such as the ones listed in your post. Our primary focus is helping to raise capital for Aboriginal lenders making loans to First Nation entrepreneurs in rural Canada. This scenario has much in common with other parts of the world as key stakeholders are the resource sector companies operating in the same regions -- they require local labour, local contractors, community acceptance of their project and indeed local knowledge. Our task is to established shared value and a feasible investment model. Another key aspect of our work is evaluation and reporting on social outcomes arising from these activities. Thanks for writing this post. It is good to gain an international perspective.
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