Meeting SDG 1: The Role of IPF

Romilly Greenhill, Team Leader, Development Finance 4 February 2015

SDG Goal 1 ‘End poverty in all its forms everywhere’

• • • By 2030, eradicate extreme poverty for all people everywhere, implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable by 2030 build the resilience of the poor and those in vulnerable situations, and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

#GlobalChallenges

Zero poverty by 2030 looks achievable… #GlobalChallenges

…but there are real risks #GlobalChallenges

Poverty concentrated amongst the hardest to reach groups #GlobalChallenges

Using IPF to promote growth is only part of the solution

• Impact of growth on poverty is gradual and uneven • The impact of ODA on growth is small • Can external actors influence growth? • Investing in social sectors helps promote inclusive growth

#GlobalChallenges

Policies for poverty reduction and more equal growth

• Social protection • Universal primary and secondary education • Universal health coverage • Peace and state-building

#GlobalChallenges

Social sectors need public financing

• Finance is a necessary but not sufficient condition for progress •

Public

financing is important • Social protection schemes need public financing • Health: compulsory public financing mechanisms that pool resources • outperform private voluntary financing mechanisms Education: user fees have blocked access, and private schools not reaching poorest • Domestic public finance is ideal, but not always sufficient

#GlobalChallenges

LICs will need more IPF

Source: Marcus and Hoy (forthcoming)

#GlobalChallenges

But IPF needs to change

• Volume and allocation • More concessional IPF for LICs and fragile states • More non-concessional IPF for LMICs • Delivery • Use of ‘adaptive programming’ approaches and greater risk sharing, especially in FCAS • Architecture • Greater use of multilaterals, especially in FCAS • New ‘Bolsa Familia Global’

#GlobalChallenges

Current aid allocations are unequal

Source: Marcus and Hoy (forthcoming)

#GlobalChallenges

Why a ‘Bolsa Familia Global?’

• • • • • • National ownership and country-leadership Improved allocation to countries in need Predictable multi-year funding commitments An important global voice for civil society Transparent resource mobilisation parameters Effective financing for technology transfer

#GlobalChallenges

[email protected]

#GlobalChallenges | odi.org