Transcript Marilou Uy

The Seoul Post-2015 Conference: Implementation and Implications
Seoul, Korea
October 7, 2013
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The original MDGs were articulated independently of a financing
framework (Monterrey 2002).
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In a context of fiscal consolidation and an evolving landscape of
development financing, discussion of post-2015 goals would need
to be integrated with consideration of a supporting financing
framework for implementation.
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The purpose of this presentation is to present some elements of a
financing framework for the post 2015 development goals.
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Good policies and credible institutions to:
Increase impact of available resources
Leverage additional resources
Good policies and credible institutions enhance the impact of
available resources and leverage additional resources from both
domestic and foreign sources.
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At the country level:
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Design targeted,
evidence-based policies
and support sound
institutions
Generate more revenues
Ensure efficient public
spending
Promote financial
deepening and inclusion
Globally:

Maximize the impact of ODA

Support new development
partners

Leverage the private sector

Tap into new sources of
finance

Deliver global public goods
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Tax Revenue (in % of GDP) by Income Groups, 1994-2009
28.4
30
29.3
28.4
25
21.2
20
18.8
19.3
19
17.1
13.6
15
11.3
10.5
10
10
5
0
1994
1998
High Income
2003
Middle Income
2009
Low Income
Source: World Development Indicators
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Subsidies are an inefficient means of
assisting the poor: only 8% of the $409
billion spent on fossil-fuel subsidies in
2010 went to the poorest 20% of the
population.
Source: World Energy Outlook, IEA,
Fossil fuel consumption subsidies measure
what developing countries spend to provide
below-cost fuel to their citizens. High-income
countries offer support to energy production
in the form of tax credits or loan guarantees,
which are not included in these calculations
since they are directed towards production
rather than consumption of the fuel.
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How do financial
institutions contribute
to economic growth?
Improve the
allocation of
resources
Lower the cost of
financial and
nonfinancial
transactions
Facilitate efforts to
reduce and trade
risks
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Source: World Bank CFP Working Paper No.
8, Finance for Development
Source: Fragile States 2013, OECD
NB: Based on OECD definition of fragile states
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Estimated aid from BRICS, 2003-2009 (USD billion)
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2003
2004
China
Source: World Bank CFP Working
Paper No. 8, Finance for
Development
2005
India
2006
Russia
2007
Brazil
2008
2009
South Africa
For the purpose of comparison, in 2009, net ODA from DAC
members was 119.8 bn USD.
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ODA from Saudi Arabia, South Korea, and Turkey, 2003-2009 (Gross disbursements, US$ billion)
ODA from non-DAC donors excluding BRICS, 2003-2009 (Net disbursements, US$ billion)
DAC Annual Reports and IDS Statistics; Zimmerman and Smith, 2008
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Global funds: trust funds that pool resources for specific issues of global
importance
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Global Partnership for Education
GAVI Alliance (formerly the Global Alliance for Vaccine and Immunization)
Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM)
Global Environment Fund (GEF)
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Scattered data – available estimates for private aid to developing countries
in 2009 range from USD 22 billion to USD 53 billion
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Low estimate is equivalent to 16 percent of ODA from all donors in the same
year, and up from 2005 (12 percent of ODA)
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Private philanthropy to fragile states increasing in recent years
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South-South philanthropy also on the rise, especially in the Arab world
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Philanthropic giving highly sensitive to factors such as media coverage,
timing, geopolitical considerations
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Kenya
Maharashtra & Tamil Nadu, India
P R I V AT E S E C T O R P O W E R
G E N E R AT I O N P R O J E C T
C L I F F C O M M U N I T Y S A N I T AT I O N
P ROJECT
Total initial investment: $ 7.2 million
- Homeless International
- S PA R C ( N G O i n I n d i a )
- Community-based Organizations
Total initial investment: $ 623 million
- Kenya Power and Lighting Company
- IFC
- MIGA
- Commercial Banks
Emerging
Partnerships
Sao Paulo, Brazil
Lake Kivu, Rwanda
M ETRO LINE 4
K I V U W AT T
Total initial investment: $ 450 million
- Companhia do Metropolitano de Sao
Paolo
- 5 Equity Sponsors
- IDB
- Commercial Banks
Source: Emerging Partnerships, IFC, 2013 and World Bank, Africa Region.
Total initial investment: $ 142.25
million
- ContourGlobal
- Energy Authority of Rwanda
- MIGA
- Emerging Africa Infrastructure Fund
- FMO
- AfDB
-Belgian Development Bank
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Total assets by type of institutional investors in the OECD, 1995-2011 (USD trillions)
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A g R e s u l t s I n i t i at i v e
Inputs
increasing
yields
Outputs
post harvest
management
Livestock
Nutrition
International Finance Facility
for Immunization ( IFFIm)
Linking spending to actual development outcomes
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Global public goods lie at the intersection of national development
priorities and global interests
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The under-provision of GPGs disproportionately affects the poor
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GPGs are at the center of the post-2015 agenda:
– International financial architecture
– Trade/market access
– Peace and security
– Climate change
– Communicable diseases
– Knowledge for development
– Statistical capacity-building
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Promote targeted policies and support accountable, efficient institutions for shared growth
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Mobilize domestic resources for development through:
– Broader tax coverage and increased taxation capacity
– Efficient public spending and greater accountability
– Management of natural resource revenues
– Deeper domestic financial sector
– Vibrant private sector development for job creation and shared growth
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Maximize the impact of ODA
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Leverage more private resources
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Draw on emerging and innovative sources of finance
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Deliver global public goods
The range of financing sources and instruments have different challenges and comparative
advantages. Mobilizing a broad range of financing and using the right combination of instruments
to meet a given goal, in a given country context, would be important tasks ahead to implement the
next development framework post-2015.
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Marilou Uy
Senior Adviser
The World Bank
[email protected]
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