Final project finance for development
- 1. Course: Finance for Development by World Bank Group Final Project Topic Something important that you have learned during this course about financing for development
- 2. Very interesting to know about MDGs and SDGs: MDGs: Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development SDGs: Goal 1 End poverty in all its forms everywhere Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture Goal 3 Ensure healthy lives and promote well-being for all at all ages Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Goal 5 Achieve gender equality and empower all women and girls Goal 6 Ensure availability and sustainable management of water and sanitation for all
- 3. Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10 Reduce inequality within and among countries Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable Goal 12 Ensure sustainable consumption and production patterns Goal 13 Take urgent action to combat climate change and its impacts* Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
- 4. From Billions to Trillions: 1. “Billions” in ODA to “Trillions” in investments of all kinds: public and private, national and global, in both capital and capacity. Yet flows for development include philanthropy, remittances, South- South flows and other official assistance, and foreign direct investment— together these sources amount to nearly US$ 1 trillion that needs to be used just as effectively. The most substantial development spending happens at the national level in the form of public resources, while the largest potential is from private sector business, finance and investment. This is the trajectory from billions to trillions, which each country and the global community must support together to finance and achieve the transformative vision of the SDGs. 2. The realization that achieving the SDGs will require more than money. It needs a global change of mindsets, approaches and accountabilities to reflect and transform the new reality of a developing world with highly varied country contexts. Role of MDBs: 1. The MDBs support countries in achieving their development goals by working on the ground and through financial support that we offer, that's with the financing for development, technical assistance, and policy advice. This whole structure is a leverage approach. Central to our work is using our capital base to multiply the funds we are given
- 5. several times over and then put them to use for development. We leverage, we multiply these development resources so that a dollar in managed by MDBs results in more than a dollar out for development. Not only that, more than a dollar out every single year once we're holding that dollar that's come in. It begins, the top of our pyramid, with the capital subscriptions, the Official Development Assistant contributions or ODA contributions and grants that we receive from shareholders. 2. This financial leverage is significant. For each one dollar invested in us by our shareholders, the MDBs can commit two to five dollars in new financing to our clients every single year. In the private sector arms of the MDBs, and I note that the European Bank for Reconstruction and Development is entirely a private sector focused MDB, for every one dollar there that's invested directly in private sector operations, another two to five dollars are mobilized in additional private investment 3. Overall, the MDBs manage to leverage and multiply their funding capacity through this capital, through the markets, to clients approach. Through the private sector where we mobilize additional private sector spending and also domestically with our client countries where we provide advice on tax systems, on spending that increases the development impact of every tax dollar that comes in and also increases the number of tax dollars coming in. So the whole model is one of leverage and multiplying and mobilizing resources across the development landscape for greater impact
- 6. Functions of some of World Bank Group entities: IBRD: The International Bank for Reconstruction and Development IBRD serves primarily middle-income developing countries and it helps them invest in their major development needs by giving them loans, advice, guidance and advisory services. IDA: International Development Association IDA focuses on less developed, low-income countries. Because IDA works in the poorest countries it offers grants and concessional loans. IDA serves the poorest countries and it offers the least expensive forms of financing. IFC: International Finance Corporation IFC was created next to the World Bank to stimulate private investment in development countries. IFC doesn't work directly with governments although it also provides advisory services, it works in the private sector with loans and equity grants and other investments.